Indonesia will investigate suspected cartel practices by palm oil companies that are signatories to the Indonesian Palm Oil Pledge (IPOP), an agreement aimed at curbing deforestation, the country’s anti-monopoly agency (KPPU) said.
“The IPOP agreement has the potential to become the means of a cartel that will give rise to monopoly practices and or unhealthy business competition,” KPPU spokesman Dendy Sutrisno said in a statement issued late on Wednesday (13/04). “Because of this, the KPPU states that the IPOP agreement cannot be implemented.”
The six members of IPOP are Wilmar International, Cargill, Musim Mas, Astra Agro Lestari , Asian Agri and Golden Agri-Resources.
Indonesia wants big palm oil companies to row back on the historic pledges made at a climate change summit in 2014, arguing that they are hurting smallholders who cannot afford to adopt sustainable forestry practices.
Indonesia is the world’s biggest producer of the edible oil.
Source: JakartaGlobe.com | 14 April 2016