JAKARTA (Reuters) – Indonesia’s antitrust agency on Tuesday called for tighter controls on the palm plantation area used for oil production that a business group can operate, to reduce the risk of unfair competition in the cooking oil industry. .
The agency known as KPPU has been investigating cartel practices in the cooking oil sector, which uses palm oil as a raw material, and has seen retail prices soar in recent months.
KPPU found in an initial analysis that just five business groups in Indonesia control a large part of the country’s palm plantation area and that the area they control is larger than allowed, director Marcellina Nuring said in an online briefing this week. Tuesday.
She declined to name the groups and did not share details of the size of their operations.
Indonesia has a total oil palm plantation area of 16 million hectares, including those operated by smallholders, private companies and state-owned companies.
A palm oil group can operate a maximum of 100,000 hectares (247,105 acres) of plantation.
The KPPU is currently conducting a review of the issue and will present the results of its review to the government, although it did not specify a timeframe.
(Reporting by Bernadette Christina Munthe, Fransiska Nangoy)
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