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

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 , 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.

Indonesia is the world's biggest producer of the edible oil. (Reporting by Bernadette Christina Munthe; Writing by Fergus Jensen; Editing by Ed Davies)