Indonesia to probe palm producers' environmental pledge -anti-monopoly agency

Golden Agri-Resources

14/04/2016 02:36

JAKARTA, April 14 (Reuters) - 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. "Because of this, 
the KPPU states that the IPOP agreement cannot be implemented." 
    The six members of IPOP are Wilmar International Ltd 
 WLIL.SI , Cargill Inc  CARG.UL , Musim Mas, Astra Agro Lestari 
 AALI.JK , Asian Agri and Golden Agri-Resources  GAGR.SI . 
    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.  urn:newsml:reuters.com:*:nL4N11L3HZ 
    Indonesia is the world's biggest producer of the edible oil. 
 
 (Reporting by Bernadette Christina Munthe; Writing by Fergus 
Jensen; Editing by Ed Davies) 
 ((fergus.jensen@thomsonreuters.com; +62 21 2992 7604; Reuters 
Messaging: fergus.jensen.thomsonreuters.com@reuters.net)) 
 
Keywords: INDONESIA PALMOIL/PROBE