According to Reuters, Indonesia’s anti-graft agency has named seven people, including Edy Saputra Suradja (Vice President Director of Sinar Mas Agro) and Willy Agung Adipradhana (Chief Executive of PT Binasawit Abadi Pratama) in connection with a bribery case. Both Sinar Mas Agro and Binasawit are subsidiaries of Golden Agri-Resources (GAR).

The people are accused of bribing parliamentarians to avoid an investigation into Binasawit’s plantation permits and palm processing waste near Sembuluh Lake in the Borneo island.

GAR expects its Indonesian-based subsidiaries to be managed in accordance with the law and regulations of the country, and the company will cooperate fully with the ongoing investigation.

Prior to this, we had a HOLD rating with S$0.24 fair value estimate on GAR.

Source: OCBC Research - 29 Oct 2018