A PYMNTS Company

Indonesia: Palm producers being probed

By  |  April 14, 2016

Indonesia will investigate palm oil companies that are signatories to the Indonesian Palm Oil Pledge for potential anti-competitive practices, the country’s anti-monopoly agency 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. “Because of this, the KPPU states that the IPOP agreement cannot be implemented.”

IPOP is an agreement aimed at curbing deforestation. Its six members are Wilmar International Ltd, Cargill Inc, 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.

Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.