Bunga Lada (historically spelled boengong lada) was a speculative agricultural futures contract where pepper planters sold unharvested future pepper crops to traders at heavily discounted fixed prices.
Legal Status
During price collapses, planters who failed to deliver contracted volumes accumulated severe debts. Colonial authorities declared Bunga Lada contracts illegal (haram) and unenforceable in court.
See Also
Source
De pepercultuur in Atjeh en onderhoorigheden, H. Heyl, Atjeh Drukkerij en Boekhandel, 1912, pp. 10, 49.