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Singapore, May 28, 2026 — Shares of Wilmar International, Asia’s largest agribusiness group, sank more than 11 percent in Singapore trading on Thursday after Indonesian authorities opened a sweeping investigation into palm oil exporters accused of manipulating invoices and evading taxes.
The sell off marked Wilmar’s steepest single-day decline in six years, wiping out billions in market value and rattling investors who have long viewed the company as a bellwether for Southeast Asia’s commodity trade.
A Sweeping Probe
Indonesia’s finance ministry confirmed that at least ten palm oil producers including Wilmar and Musim Mas are under investigation for alleged under-invoicing and transfer pricing schemes.
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Officials say the practices allowed companies to shift profits abroad, depriving the state of crucial tax revenue.
The probe is being coordinated with the attorney general’s office, signaling Jakarta’s intent to pursue criminal charges if evidence of systemic fraud emerges.
President Prabowo Subianto, who took office earlier this year, has vowed to nationalize key commodity exports, citing “deep-rooted abuses” in palm oil and mining.
Market fallout Wilmar stock dropped to S$3.45, its lowest level since 2020.
Trading volume spiked to nearly nine times the 20-day average, underscoring investor panic.
Sector impact other agribusiness firms with Indonesian exposure also saw declines, reflecting fears of broader regulatory tightening.
Wilmar has faced scrutiny before. In 2025, the company surrendered 11.9 trillion rupiah (US$729 million) to Indonesian authorities in a settlement over export-related violations.
Analysts say the recurrence of probes raises questions about corporate governance and compliance standards across the industry.
Palm oil, Indonesia’s most valuable export, has long been dogged by allegations of tax evasion, opaque pricing, and environmental mismanagement.
The latest crackdown suggests Jakarta is determined to assert greater control over the sector, even at the risk of unsettling foreign investors.
The investigation highlights the political risk of operating in Indonesia’s commodity sector, where sudden policy shifts can destabilize markets.
Analysts warn that stricter export controls could squeeze profit margins and reshape global supply chains for food, cosmetics, and biofuels.
“Indonesia is signaling that it will no longer tolerate practices that undermine state revenue,” said one regional economist. “But the uncertainty is likely to weigh on investor sentiment for months.”
Wilmar’s shares are expected to remain volatile as the probe unfoll. Profitability across the palm oil industry may shrink if Jakarta enforces tighter invoicing rules.
Indonesia’s push for nationalization could alter the global palm oil trade, forcing multinational firms to rethink supply strategies.
