Indonesia Seeks Police Probe of 270-300 Palm Oil Firms Over Farmer Payments
Updated
Updated · Bloomberg · Jun 8
Indonesia Seeks Police Probe of 270-300 Palm Oil Firms Over Farmer Payments
2 articles · Updated · Bloomberg · Jun 8
Summary
Indonesia’s agriculture minister asked police and special crime units to investigate 270 to 300 palm oil companies accused of not raising payments to farmers in recent days.
The probe request followed reports that the firms kept purchase prices unchanged even after palm prices recovered from a slump tied to Indonesia’s new export policy.
Amran Sulaiman said the ministry had compiled the company reports and submitted them after a Monday meeting with local officials, the palm oil industry association and farmer groups.
The move escalates pressure on the palm sector as Jakarta tries to ensure any rebound in prices is passed through to growers rather than absorbed by processors and traders.