KUALA LUMPUR (Oct 22): PPB Group Bhd (KL:PPB) said that its 18.8%-owned associate Wilmar International Ltd had on Oct 20 announced that the general manager for its Indonesian subsidiary Duta Sugar International (DSI) had been charged for carrying out “unlawful acts” relating to the import of raw sugar into the republic.

Duta Sugar International, along with eight other refined sugar producers in Indonesia, were charged by the Indonesian public prosecutor this October, following the arrest of former trade minister Thomas Lembong, which was accused by the Attorney General (AG) of Indonesia to have violated the relevant trade regulation in approving the issue of import permits in 2016.

“Representatives of the nine sugar producers, including the general manager of DSI, have been detained and charged for the aforementioned acts.

“The nine sugar producers were required to place a security deposit totalling 565.34 billion rupiah(approximately US$35 million) with the AG. DSI’s share of this deposit was 41.23 billion rupiah(approximately US$2.5 million).

“The financial impact of the US$2.5 million deposit paid by DSI, if forfeited, will not be material for Wilmar,” the Singapore-listed company said in a statement.

As Wilmar is an associate of PBB, the Malaysia-listed agriculture group announced that the financial impact on the group is not expected to be material.

“The case is pending the court’s decision. Nonetheless if the entire US$2.5 million deposit paid is forfeited, the potential financial impact on the PPB Group for the financial year ending Dec 31, 2025 is not expected to be material,” said PBB.

The nine sugar producers’ position in relation to these charges has always been that they were acting in accordance with a directive by the former trade minister to partner state-owned trading company, Perusahaan Perdagangan Indonesia (Persero) to import raw sugar and distribute refined white sugar to address the domestic sugar shortage problem in Indonesia in 2016.

Lembong was found guilty on July 18, 2025, and sentenced to four years and six months’ imprisonment and fined 750 million rupiah, with a subsidiary penalty of six months’ imprisonment if the fine was not paid.

However, the legal process against him was subsequently halted following the presidential decree granting him abolition.

The representatives of the nine sugar producers have contended that following the abolition and halting of legal processes in respect of the sugar import case against the former trade minister, the case against them, should be dismissed. The case against the nine sugar producers is now pending the court’s decision.

PBB’s share price closed unchanged on Oct 21 at RM10.90, valuing the group at RM15.51 billion.