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Indonesia says Unilever move on palm oil unfair

Source:  Copyright 2010, Reuters
Date:  March 5, 2010
Byline:  Aloysius Bhui
Original URL: Status ONLINE

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A move by Unilever to stop buying palm oil from Indonesia's top supplier Sinar Mas and to blacklist another supplier PT Duta Palma was "unfair," Indonesian Agriculture Minister Suswono said on Friday.

Green campaigners and consumers have turned up the heat on European firms such as Unilever, saying these companies' palm oil suppliers are responsible for deforestation and peatland clearence that can speed up climate change.

"If there is a dispute we should ask an independent to judge objectively what was the weakness. A unilateral decision by Unilever I think is unfair," the minister told reporters.

Unilever, the world's top palm oil buyer, blacklisted Duta Palma last month, after previously halting a $33 million supply contract with Sinar Mas unit PT SMART.

"We have to prove if the accusations are right so going forward there will not be misunderstanding," added Suswono, who uses one name like many Indonesians.

The move by ...

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