*Wilmar*

Wilmar’s stock price could potentially reverse yesterday’s negative performance (-2.3%). As a recap, The Jakarta Post reported that the Indonesian tax authorities have officially commenced a probe into allegations that Wilmar is in collusion with Indonesian tax officials to underpay VAT. Many market observers believe that the allegations, which surfaced two weeks ago, are politically motivated because it comes at a time when the former Indonesia tax Head, Darmin Nasution was slated as a possible candidate to replace outgoing Finance Minister Sri Mulyani. Darmin Nasution is not only a career civil servant but also widely regarded as an upright and competent reformer in the Indonesia political circuit. Today, the world press and the Wall St Journal report that the President Yudhoyono has nominated Darmin Nasution as the new Governor of Bank Indonesia (BI).

Nasution’s appointment to the top job should quash any further speculation of improprietary during his tenure as head of Indonesia’s tax department.This event could also have an indirect positive implication on Wilmar’s alleged tax fraud case, where proceedings officially began yesterday. Wilmar’s Wilmar’s stock price could react positively today; its technical support lies at $5.15.