The bright prospects of the palm oil market have driven increased production together with oil palm plantation expansion, particularly as palm oil is consumed so widely. Palm oil is used for a multitude of products, including foods, cosmetics, cleaning products, and biofuels. There are at least 200 types of palm oil derivative products (SPOTT, 2016). Due to its mass appeal, palm oil is cheap, but is also easy to produce, and its price is relatively stable.
Nevertheless, information on Indonesia’s palm oil industry structures and beneficial owners is not necessarily open or visible. Moreover, according to a study by Indonesia’s Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha (KPPU), oil palm plantation cultivation market structures in Indonesia are oligopolistic in nature, and controlled by only a handful of business players. This hits the same note as conclusions from other studies, like the findings of TUK Indonesia (2018), which studied 25 palm oil tycoons, or KPK’s finding (2016) stating that 80% of Indonesia’s palm oil exports are controlled by 30 large companies.
This opacity not only makes it difficult to trace oil palm industry supply chains, but also creeps into its trading. Further, the opacity of information on the beneficial ownership of palm oil corporations opens room for monopolies and unhealthy business competition, and has the potential to threaten the national economy in the long term.
Moving on from the above situation, AURIGA aims to encourage transparency in Indonesian palm oil. Not only at the plantation level, but also in its processing and trading. It is within this framework that the Ngopini Sawit #1: Mapping National Palm Oil Industry Players dialog will take place.
Keynote speakers and presentation themes
Q & A: in Bahasa Indonesia, you can click here
Time and location: Monday, 4 May 2020, in a Zoom webinar
Participants invited to this event represent palm oil industry stakeholders, including ministries/state agencies, companies/associations, civil society, academics, and growers.