Wilmar International's stock fell sharply intraday, dropping 3.14% as the market reacted to negative legal developments involving the company's Indonesian operations.

The decline follows news that Muhammad Syafei, Head of Social Security Legal at Wilmar's Indonesian unit, was sentenced to six years in prison and fined approximately S$22,700 for bribing judges. The sentencing relates to a case where judges had acquitted Wilmar subsidiaries of charges related to improperly obtaining export permits for oil products.

This legal development creates potential reputational and operational risks for Wilmar's business in Indonesia, one of its key markets for palm oil operations. The sentencing was confirmed by the company in a market update, highlighting ongoing legal challenges in the region.