Satya Bumi: Palm Oil Export Corruption Verdict Bribery Scandal Reflects Poor Palm Oil Governance and a Broken Judiciary

JAKARTA – Environmental organization Satya Bumi strongly condemns the bribery scandal in the crude palm oil (CPO) export corruption case involving major palm oil companies and judicial officials. The alleged bribery underscores the lack of integrity in Indonesia’s judicial system and highlights the poor governance of the palm oil industry.

On Saturday, April 12, 2025, the Attorney General’s Office named South Jakarta District Court Chief Muhammad Arif Nuryanta as a suspect in a bribery case involving the manipulation of a verdict in the CPO export corruption trial for the period of January 2021–March 2022. The alleged bribery aimed to secure an acquittal (onslaag) for three corporate defendants: PT Wilmar Group, PT Permata Hijau Group, and PT Musim Mas Group.

“This bribery case is a grim reflection of the governance crisis in our palm oil industry. The Attorney General’s Office had actually taken a progressive step by naming corporations—not just individuals—as suspects. This was a major breakthrough in corporate law enforcement. Unfortunately, that step has been tainted by a bribery scandal in the courtroom,” said Satya Bumi Executive Director Andi Muttaqien in Jakarta (April 15).

Previously, on March 19, 2025, the panel of judges at the Central Jakarta Corruption Court issued a release verdict for the three companies. The trial was presided over by Judge Djuyamto, with judges Agam Syarif Baharudin and Ali Muhtarom as members. At the time, Arif Nuryanta served as Deputy Chair of the Central Jakarta District Court.

Weak Judicial Reasoning

The connection between the bribery and the release verdict is evident in the weak legal reasoning behind the court’s decision to declare the corporations not guilty in the CPO export permit corruption case.

According to the ruling, the panel of judges considered that the state’s financial losses in the case concerning the export facilities for crude palm oil and its derivatives between January and March 2022 were not concrete or definite.

Additionally, the judges argued that the corporate actions did not constitute a conspiracy or malicious intent to enrich the defendants that would result in financial loss to the state. The defendants were considered to be merely implementing policies issued by the Ministry of Trade regarding the management of cooking oil, and were in fact financially harmed by these policies.

The judges also claimed the case was closely related to a civil dispute and damages claim between the defendants and the Ministry of Trade, which had already been decided by the Central Jakarta District Court on December 17, 2024, and upheld by the Jakarta High Court on February 17, 2025.

Moreover, the judges argued that the case had already been resolved in the administrative court (PTUN) between the defendants and the Ministry of Trade. In that ruling, the Indonesian Ombudsman found the Ministry of Trade guilty of maladministration and negligence in implementing Regulation No. 12/2022 regarding export exemptions for CPO and its derivatives.

Thus, in their decision, the panel declared that although the defendants had committed the acts described in the second element of Article 3 of Law No. 31/1999 as amended by Law No. 20/2001 on Eradication of Corruption, the acts did not constitute a criminal offense (onslag van alle recht vervolging).

“We believe this case was systematically orchestrated from the start to shield the defendants from corporate responsibility in this corruption case. A closer look shows that the defendants exploited legal loopholes by filing civil and administrative lawsuits to strengthen their position in the Corruption Court,” added Andi.

The exposure of this scandal further confirms that the release verdict for the three corporations is legally and morally flawed. Bribery committed to free corporations from legal accountability clearly represents a setback in palm oil sector reform efforts.

Satya Bumi’s Demands:

  • The Attorney General’s Office must thoroughly investigate this bribery scandal as a form of corruption committed by legal entities (i.e., corporations), and ensure that legal action reaches the corporate controllers of Musim Mas, Permata Hijau, and WILMAR;

  • Referring to the judicial panel’s reasoning behind the release verdict, there are two rulings that were cited as the basis:
    a) Civil Case No. 230/PDT.G/2024/PN Jkt Pst dated December 17, 2024, jo. Jakarta High Court Decision No. 163/PDT/2025/PT DKI dated February 17, 2025;
    b) Administrative Court Case No. 472/G/TF/2023/PTUN.JKT
    Therefore, law enforcement should consider expanding investigations into those related cases.

  • The European Union, through the Commission, Competent Authorities, and Operators, must pay close attention to this systematic corruption case involving three exporters to the EU market. Article 4 of the EU Deforestation Regulation (EUDR) states that law enforcement is a key factor in determining non-negligible risks. Thus, special attention is required not only from the EU, but also from international markets such as China, the United States, India, and others.

  • The Roundtable on Sustainable Palm Oil (RSPO) must impose strict sanctions, including suspension of certification for the palm oil groups involved, and even consider revoking their RSPO membership.

Satya Bumi emphasizes that this scandal must serve as a wake-up call to comprehensively reform palm oil governance in Indonesia. Going forward, commitment to sustainability must not rely solely on certification documents, but be demonstrated through genuine legal integrity and public accountability.

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Annisa Rahmawati

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Annisa Rahmawati adalah seorang perempuan aktivis lingkungan. Mengawali karirnya pada tahun 2008 sebagai Local Governance Advisor pada program kemanusiaan di Aceh – di EU-GTZ International Service yang berfokus pada perawatan perdamaian dan peningkatan kapasitas pemerintah daerah. Pengalaman dalam bisnis yang lestari dan berkelanjutan didapat dari Fairtrade International sebagai assistant dan di Greenpeace Southeast Asia sebagai Senior Forest Campaigner yang berfokus pada kampanye market untuk komoditas industrial khususnya sawit yang bebas deforestasi sejak tahun 2013-2020. Selain itu Annisa juga pernah bekerja sebagai asisten proyek di UN-ESCAP Bangkok untuk perencanaan pembangunan kota yang lestari pada tahun 2012. Annisa memiliki latar belakang pendidikan di bidang Biologi dari Universitas Brawijaya Malang dan mendapatkan master dari International Management of Resources and Environment (IMRE) di TU Bergakademie Freiberg Germany dengan dukungan Yayasan Heinrich Boell Stiftung. Annisa sangat antusias dan passionate untuk menyebarkan pesan dan kesadaran kepada dunia tentang permasalahan lingkungan dan bagaimana mencari solusi untuk menjadikan bisnis lebih bisa melakukan tanggung jawabnya, serta bagaimana kita bisa bertindak untuk menghadapi krisis iklim yang saat ini sedang kita hadapi.