AmCham Update Vol. 6 #102

Palm Oil Bribery Acquittal Voided By Supreme Court; Police Charge almost 1000 People, including Children, over Riots; Prabowo Home from World Tour with Deals and Pledges; PLN to Manage Cross-Border Electricity Trade; OECD Revises 2025-26 Indonesia Growth to 4.9 Percent

Sep 29, 2025

Supreme Court Reverses Palm Oil Bribery Acquittal

A lower court ruling clearing three large palm oil companies of corruption charges was struck down by the Supreme Court, which reinstated criminal liability and ordered trillions of rupiah in fines and restitution payments related to the issuance of permits for crude palm oil (CPO) exports in 2022.

In a ruling read on Sept. 15, the court found Wilmar Group, Permata Hijau Group and Musim Mas Group guilty of corruption over export permits obtained in 2022. In that year, CPO shipments were restricted due to a domestic cooking oil shortage.

The Attorney General’s Office (AGO) said that the three companies evaded the temporary export ban and alleged that the illegal exports cost the state around Rp 18 trillion (US$1.07 billion) because the government had to heavily subsidize domestic cooking oil prices during the crisis. Prosecutors had demanded that the Jakarta Corruption Court sentence the three companies to each pay Rp 1 billion in fines, along with restitution payments ranging from Rp 900 billion to Rp 11 trillion in compensation. The court instead found the companies not guilty.

Prosecutors appealed to the Supreme Court, following the arrest of the lower court judges in April on charges of receiving Rp 60 billion in bribes in return for the favorable verdict.

In upholding the appeal, the Supreme Court ordered the three companies to pay a Rp 1 billion fine each, plus restitution in the amount of Rp 11.8 trillion for Wilmar, Rp 937 billion for Permata Hijau and Rp 4.8 trillion for Musim Mas.

In June, Wilmar had turned over Rp 11.8 trillion to the AGO as what it called a “security deposit” in the case. The AGO at the time said the money would be used as evidence for the appeal to the Supreme Court.

In its ruling, the Supreme Court ordered the AGO to seize the money as compensation and transfer it to the state treasury.

Singapore-based Wilmar said in a statement after the verdict was read that its actions were within legal bounds and “were done in compliance with prevailing regulations and in good faith.”

The three accused judges, along with former Central Jakarta District Court deputy head Muhammad Arif Nuryanta, are still standing trial. Arif was serving as court deputy head when the palm oil trial started in early 2024 and allegedly accepted Rp 60 billion in bribes from the palm oil companies through intermediaries. The money was allegedly shared with the three judges.

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Police Accuse almost 1000 People, including children, over August Riots

The naming of 959 people – including more than 200 children – by the police as suspects over rioting during anti-government protests in late August, has prompted severe criticism.

The National Police’s Criminal Investigation Department (Bareskrim) on Sept. 27 released its record of people arrested nationwide and named as rioting suspects linked to protests between Aug. 25 and 31.

The protests grew out of public discontent over economic hardship and began peacefully. The situation escalated dramatically and spread nationwide after a police vehicle ran over and killed 21-year-old GoJek driver Affan Kurniawan, who was delivering food not protesting.

In a livestreamed press briefing, Bareskrim head Comr. Gen. Syahardiantono said the 959 people named as suspects played direct roles in arson and vandalism against public facilities and government buildings.

Some allegedly also urged people online to join the riots. “Mainly, the modus operandi in some cases was inciting and encouraging others to riot by posting on WhatsApp groups and live broadcasts on social media platforms,” Syahardiantono said.

Police did not say exactly how many people are currently detained, although dozens of people suspected of looting and arson have been jailed.

Among the 959 suspects, at least 295 were children, according to The Jakarta Post.

Syahardiantono said investigators did not prosecute all underage suspects and granted 68 of them diversion, an out-of-court alternative for juveniles.

The remaining children, like the rest of the suspects, remain subject to trial.

Human rights groups condemned what they called an “excessive” response by the police.

Usman Hamid, executive director of Amnesty International Indonesia, said that many detainees were arrested without warrants and became victims of further criminalization.

“Criminals must be prosecuted. However, arbitrary arrests and suspect-naming against citizens who exercise their constitutional rights to expression and peaceful assembly constitutes a violation of civil liberties,” Usman said on Sept 28.

Commission for Missing Persons and Victims of Violence (Kontras) coordinator Dimas Bagus Arya said several people under arrest did not have strong cases for their crimes, such as those who were detained for posts on social media.

Dimas worried that some of the arrests “are merely a political disciplinary action toward young people’s freedom of speech and expression.”

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Prabowo World Tour Ends with Investment Pledges and Cooperation Deals

President Prabowo Subianto returned to Jakarta on Sept. 27 after a four-country tour during which he addressed the United Nations and secured cooperation agreements and investment pledges worth billions of dollars.

The trip began in Japan, with a visit to the Indonesian Pavilion at Expo Osaka 2025 on Sept 20. According to Minister of National Development Planning Rachmat Pambudy, the event secured $23.8 billion in investment pledges, though details were not disclosed to the public.

On Sept. 23 in New York, Subianto addressed the UN General Assembly with a widely praised speech promoting multilateralism and offering to send peacekeepers to Gaza. During the visit, he also met FIFA President Gianni Infantino, who reaffirmed support for developing Indonesia’s youth football academies.

One of the most significant outcomes was in Canada, where Prabowo and Prime Minister Mark Carney witnessed the signing of the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA), on Sept. 24. The agreement, set to take effect in 2026, will see Canada remove 90.5 percent of its tariffs on Indonesian goods, while Indonesia will liberalize 85.8 percent of its tariffs.

“We succeeded in signing CEPA, a free trade agreement that is a milestone. We spent years negotiating, just as we did with the EU,” said Subianto.

Indonesian officials said the pact is also projected to raise Indonesian exports to Canada to $11.8 billion by 2030 and add 0.12 percent to the country’s GDP. Carney said the deal would eliminate most tariffs on Canadian exports and ensure preferential access to the Indonesian market.

Business-to-business ties were also strengthened through a cooperation pact between the Indonesian Chamber of Commerce and Industry and the Business Council of Canada. In addition, the two countries signed a defense memorandum covering Canada’s role in the Super Garuda Shield exercise and defense training.

The tour ended in the Netherlands on Sept. 26, where Prabowo was received by King Willem-Alexander and Queen Máxima, who agreed to return about 30,000 artifacts, fossils, and documents taken from Indonesia during the colonial era.

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PLN Given Authority to Manage Cross-Border Electricity Trade

Indonesia’s State Electricity Company (PLN) has been granted authority as the sole aggregator for cross-border electricity imports and exports under Government Regulation No. 40/2025 on the National Energy Policy (KEN), signed by President Prabowo Subianto on Sept. 15. The regulation also allows the government to appoint specific companies to represent the state in handling electricity imports.

Officials said the regulation follows a memorandum of understanding signed with Singapore on June 13, which paves the way for up to 3.4 gigawatts (GW) of low-carbon electricity exports to Singapore and for Singaporean investment in carbon capture and storage (CCS) projects in a planned renewable energy-based industrial zone in the Riau Islands.

The regulation further stipulates that revenues from the cross-border electricity trade may be used to support national energy security and fund renewable energy development.

Yusuf Didi Setiarto, Director of Legal and Human Capital Management at PLN, told lawmakers at the House of Representatives Commission XII that the move was necessary in order to streamline the import-export process between countries, and to position Indonesia as a key regional player in the renewable electricity market in Southeast Asia.

“If we access the Singapore market individually block by block, we will be dictated by the Singapore market because they already use market clearing,” said Yusuf on Aug. 28.

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform, noted that PLN’s limited financial capacity could pose challenges. He estimated the utility would need about $188 billion in new investment to deliver its 2025-2034 Electricity Supply Business Plan.

Despite higher targets for renewable capacity – an additional 42.6 GW over the next decade – Fabby warned that PLN continues to have trouble executing projects. “Slow auctions for large-scale renewable power plants and lengthy PPA [Power Purchase Agreement] negotiations are holding back progress, threatening both the energy transition and the long-term security of supply,” he said.

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OECD Outlook Sees Indonesian Growth at 4.9 percent in 2025 and 2026

As part of its growth projections for the world and major economies, the Organization for Economic Cooperation and Development, pegged Indonesia’s GDP growth for 2025 at 4.9 percent, a figure it says will stay the same for 2026 and is a 0.2 percent increase for 2025 and 0.1 percent for 2026 from June projections.

The upward revision was attributed to monetary policy easing and increased public investment.

The Indonesian government aims for 5.4 percent growth this year. After slipping below 5 percent in the first quarter, government statistics said second quarter growth was 5.12 percent.

In its Interim Economic Outlook, the OECD said the global economy is more resilient than was expected in the first half of 2025, but rising trade barriers and ongoing geopolitical and policy uncertainties remain.

Global growth is projected to slow slightly, from 3.3 percent in 2024 to 3.2 percent in 2025, before easing further to 2.9 percent in 2026, as stockpiles built ahead of the US tariffs are drawn down, putting more pressures on investment and trade.

“The global economy has remained resilient, but the full effects of higher tariffs and policy uncertainty are yet to be felt. Significant risks remain, including fiscal and financial stability concerns,” said OECD Secretary-General Mathias Cormann. He urged governments to ease trade tensions and guarantee fair, rules-based global trade.

The OECD also urged central banks to remain vigilant and use fiscal discipline to manage rising debt and budgetary pressures.

“Structural reforms will be crucial to improving living standards and realizing gains from technologies such as artificial intelligence,” said OECD Chief Economist Álvaro Santos Pereira.

The report noted that Inflation is in check across most G20 economies as growth slows and labor pressures ease. The OECD expects headline inflation to fall from 3.4 percent in 2025 to 2.9 percent in 2026, while core inflation in G20 economies should remain stable at 2.6 percent in 2025 and 2.5 percent in 2026.

Indonesia’s inflation is projected at 1.9 percent in 2025, rising to 2.7 percent in 2026, due to past currency depreciation.

GDP growth in the United States is expected to fall to 1.8 percent in 2025 and 1.5 percent in 2026, as a result of tariffs, slower net immigration and federal workforce cuts. China’s growth is projected at 4.9 percent in 2025 and 4.4 percent in 2026.

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Member Announcement | Bank HSBC Indonesia, PT.

HSBC Investment Forum 2025: Driving Indonesia’s Electric Vehicle Revolution

HSBC Indonesia recently hosted the HSBC Investment Forum 2025 in Jakarta, bringing together government representatives, industry experts, and clients to discuss how Indonesia can accelerate its electric vehicle (EV) revolution. With ambitious national targets of reaching 2.2 million electric cars, 13 million electric motorcycles, and an EV market value of USD 20 billion by 2030, Indonesia is positioning itself as a major player in sustainable mobility.

The forum began with opening remarks from senior HSBC leadership, followed by a series of panel discussions featuring key representatives from BKPM, the Electric Mobility Ecosystem Association (AEML), the Rocky Mountain Institute (RMI), and Charged Asia. The panels explored a wide range of topics, including policy roadmaps, downstream industry opportunities, ESG compliance, and the banking sector’s role in accelerating EV adoption.

Throughout the discussions, HSBC’s role in mobilizing financing and connecting global and local stakeholders was highlighted as an important driver in supporting Indonesia’s transition toward sustainable transportation.

Get to Know Our Member | AKHH LAWYERS

Adnan Kelana Haryanto & Hermanto (AKHH) is one of the most trusted business law firms in Indonesia, established in 2001. Through its offices in Jakarta and Batam, AKHH provides clients with personalized services across a broad range of practice areas, including corporate/M&A, energy and natural resources, oil and gas, restructuring and bankruptcy, technology, media and telecommunications, and dispute resolution.

AKHH’s corporate practice regularly engages in transactions across many industries, advising industry players on structuring and financing of businesses or assets, mergers and acquisitions, delistings, restructurings, and other strategic corporate decisions. AKHH also provides legal counsel and representation across the entire field of dispute resolution, working closely with clients to ensure timely and effective representation.

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Update is AmCham’s regular newsletter on developments related to investment, the economy, regulations and issues related to doing business in Indonesia. It comes out three times a week. It is edited by AmCham Managing Director Donna Priadi and written by the AmCham Staff.

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