Indonesia arrests judges who cleared palm oil companies of graft charges

Indonesian authorities have arrested three judges involved in the acquittal of major palm oil firms in a high-profile corruption case, deepening a growing scandal that has now implicated the chief judge of South Jakarta District Court and several legal officials.

Three Indonesian judges who acquitted major palm oil companies of corruption charges related to export permits have been arrested, an official from the Attorney General’s Office confirmed on Monday. The arrests follow the detention of the South Jakarta District Court's chief judge over the same case.

Last month, the court cleared Wilmar Group, Musim Mas Group, and Permata Hijau Group—three prominent palm oil companies—of wrongdoing in obtaining export permits during 2022. However, on Sunday night, the three judges responsible for the ruling were taken into custody, Attorney General’s Office spokesperson Harli Siregar told Reuters via text message.

On Saturday, authorities arrested Muhammad Arif Nuryanta, the chief judge of the South Jakarta District Court, who was allegedly paid 60 billion rupiah (approximately $3.57 million) by company lawyers to secure a favorable outcome. Siregar stated that $1.07 million of that sum was subsequently paid to the three judges who delivered the verdict. A court clerk and two lawyers have also been arrested in connection with the case.

“The bribe was given so that the judges would rule that it was not a crime,” Siregar said.

Reuters was unable to reach the detained judges or their legal representatives for comment.

The Attorney General’s Office has filed an appeal against the March acquittal. Indonesia’s Supreme Court has stated that the implicated judges will be suspended and permanently removed if found guilty, according to court spokesperson Yanto.

Wilmar International Limited responded on Monday, saying that, to the best of its knowledge, neither the company nor any of its employees are under investigation. “We believe we are not guilty of the charges, as our actions at the time were aimed at increasing palm oil supply to help the government stabilize domestic prices, despite the additional costs incurred,” the company said.

Musim Mas Group and Permata Hijau Group did not immediately respond to requests for comment.

Nuryanta, who was serving as the court’s deputy chief when the ruling was made, did not preside over the case directly.

Indonesia, the world’s largest palm oil producer accounting for around 60% of global supply, implemented strict export restrictions in 2022, including a three-week ban, in an effort to control surging local cooking oil prices.

When prosecutors initially filed corruption charges against the companies, they were seeking penalties and payments totaling up to 11 trillion rupiah.

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