Final Land Acquisition Book English.indd - Forest Peoples Programme

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Notwithstanding these limitations, the investigation does clearly illustrate some of the major shortcomings of current laws, policies and procedures relating to land allocation for oil palm plantations in Indonesia, and the consequent problems experienced by communities. 1.3 Global and National Trends Globally, the consumption of products containing oil palm products has been steadily increasing over the past 150 years, with only temporary dips occasioned by world wars and economic recessions. While still a major smallholder crop and food source in West and Central Africa, historically the major growth in demand for palm oil products has come from Western Europe. Palm oil has become the world’s greatest traded edible oil, making up some 40% of the edible oil trade, about double the figure for second-placed soybean oil. 4 Since the 1990s, Western European demand for oil palm products has been more or less stable, while demand from India, Pakistan, China and the Middle East has exploded (see figure 1.1). These new markets, and markets in Eastern Europe, are set to expand further as the people in these countries increasingly adopt ‘western’ consumerist lifestyles. It is the growth in these markets which is currently the main driver of palm oil expansion in South East Asia. Global demand for palm oil is set to double by 2020 with an annual rate of increase predicted at near 4% per year (compared to 2% per year predicted for soybean oil). 5 28% 26% EU India China Pakistan 2% 3% 7% 10% 24% Japan USA Others Figure 1.1: Main consumers of globally traded palm oil. 6 20 Palm Oil and <strong>Land</strong> <strong>Acquisition</strong> in Indonesia
Palm oil is used in a great variety of products being one of the main sources of cooking oil, shortening, ice creams and margarine, as well as being used in common items like detergents, soaps, shampoos, lipsticks, creams, waxes, candles and polishes. It is also used as a lubricant in industrial processes. Palm oil also yields oleins used in chemical processes to produce esters, plastics, textiles, emulsifiers, explosives and pharmaceutical products. In Western Europe palm oil is extensively used in processed foods. Indeed, it is estimated that 7 in 10 of all products on UK supermarket shelves contain palm oil, yet many western consumers are unaware of the fact that the goods they buy contain the oil. 7 By 2002, Malaysia and Indonesia were producing some 80% of internationally traded palm oil, with Malaysia being the major producer. 8 South East Asia has proven attractive to oil palm developers for a number of reasons, including the favourable climate, comparatively low labour costs, low land rents and concerted government plans to develop the sector, through provision of attractive (or unenforced) legal frameworks, cheap loans and fiscal incentives. However, with rising labour costs and land scarcity increasingly a factor in Peninsular Malaysia, expansion now focuses on Sabah and Sarawak (Malaysian Borneo), Thailand, Cambodia, Papua New Guinea and the Solomon Islands. In Thailand between 2003 and 2004, palm oil plantations increased by nearly 4% to cover a total area of around 300,000 ha.. The Thai government now plans continued planting at the rate of 64,000 ha. per year for 2004-2029, to achieve a target of 1.6 million hectares of new plantings by 2030. This expansion has major social implications, being directed at old rice fields, other cash crop areas and rubber plantings. 9 However, the number one country currently attracting palm oil investors is Indonesia. From a low level of 120,000 ha. of productive oil palms in 1968, a figure which rose to 250,000 ha. by 1978, oil palm in Indonesia is now experiencing a firm rate of increase, reaching 2.98 million hectares by 1998, booming to 4.1 m. ha. by 2004 and topping 5 million ha. of productive oil palms by 2005 (see figure 1.2). 10 Introduction 21
Page 2 and 3: Promised Land: Palm Oil and Land Ac
Page 4 and 5: Acknowledgements The authors would
Page 6 and 7: Contents Executive Summary 11 Chapt
Page 8 and 9: Acronyms ADB AMDAL ANDAL APL BAL BA
Page 10 and 11: SKT SPPT TGHK UN UPSB UPSBM UPSBK U
Page 12 and 13: mainly so speculators can get acces
Page 14 and 15: Policies Favour Large-scale Plantat
Page 16 and 17: In effect the government is failing
Page 18 and 19: Chapter 1 Introduction 1.1 Reasons
Page 22 and 23: 6 5 4 3 Million Hectares 2 1 0 1968
Page 24 and 25: figures, in the past five years, an
Page 26 and 27: Table 1.2. Provincial Government Pl
Page 28 and 29: Figure 1.5 Areas of current oil pal
Page 30 and 31: Endnotes: 1 Foe 2004; Wakker 2004;
Page 32 and 33: Chapter 2 Towards Responsible Palm
Page 34 and 35: The 25 persons were selected from a
Page 36 and 37: Details about negotiated agreements
Page 38 and 39: A simplified version of the TNC/DfI
Page 40 and 41: Negotiating acceptable standards fo
Page 42 and 43: Chapter 3 The Normative Framework -
Page 44 and 45: 3.2 Government Policy on Palm Oil D
Page 46 and 47: evaluate proposals for conversion o
Page 48 and 49: Moreover, although the Act emphasiz
Page 50 and 51: corresponding customary law communi
Page 52 and 53: Although the application of this pr
Page 54 and 55: were part of national development p
Page 56 and 57: electricity. 52 It is not clear tha
Page 58 and 59: ISSUANCE PROCEDURE STAGES FOR PLANT
Page 60 and 61: Translation Section for the table a
Page 62 and 63: According to the Decree, to obtain
Page 64 and 65: Article 8 of this decree states tha
Page 66 and 67: Table 3.1: Indonesian Forest Area b
Page 68 and 69: option available. The overarching l
Page 70 and 71:
several times the last being Staatb
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Chapter 4 Case Studies As part of t
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In the 1990s, the coastal adat comm
Page 76 and 77:
In the New Order era, communities w
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project participants, who have not
Page 80 and 81:
Testimony of Mr. Ajan, from Ngaras,
Page 82 and 83:
On 10 December 1993, the land offic
Page 84 and 85:
fact that the compensation being pr
Page 86 and 87:
Figure 4.2 Map of Kampung & Adat ar
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Figure 4.3 Map of Plasma & Nucleus
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6,260 ha. of land in Bengkunat. Lik
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4.1.6 Land Redistribution: Marga Re
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international transportation linkin
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The government of Sanggau district
Page 98 and 99:
Table 4.4: Land Use of Proposed PT
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These changes have also had their c
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4.3 PTPN XIII 4.3.1 Background to P
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lands were allocated to the company
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through the required process of lan
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▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ PTP
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▪ ▪ ▪ ▪ ▪ Smallholder fam
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transmigration uniform, with passio
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Testimony of a third Transmigrant I
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widely publicised Decree of the Min
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The Environmental Impact Assessment
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Official in the Provincial Regional
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Mr. Ir. Pontas Sihotang, Head of Pl
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of executive members. In this situa
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The company successfully acquired 1
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Local people strongly rejected the
Page 130 and 131:
Under the still vigorous customary
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authority to decide. In some cases,
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Since 1992, Pasaman District has be
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Those arrested from Kapar were late
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Picture 4. Recommendation Letter of
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▪ ▪ ▪ ▪ Land acquisition sh
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1) 2) 3) 4) 5) 6) Accept migrants c
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Picture 6. A letter of ulayat land
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Local community members of Kapar re
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4.6.8 A history of Land Disputes in
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distinct from other community membe
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not written. The formal validation
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According to the Head of BPN in Wes
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Endnotes: 1 LeBar (1972) refers to
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Mulang Maya (Choiruddin); Village h
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activist and legal adviser to this
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Ministry of Industry and Trade, Ria
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147 In accordance with Law No. 56 o
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Chapter 5 Legal Analysis Chapter 3
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5.1.1 Land Ownership As noted, a ba
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We can see these elements in confli
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2. The second model is an agreement
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environmental impacts, could place
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The Forestry Law (UU Kehutanan): li
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not have been categorized as State
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▪ ▪ ▪ ▪ At the stage when a
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estate labourers, out-growers or di
Page 184 and 185:
▪ ▪ ▪ Establishment of open a
Page 186 and 187:
▪ If RSPO adopted lowered standar
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Boomgard (1998) Between Sovereign D
Page 190 and 191:
ICBS (1997: 88) Kalimantan Review (
Page 192 and 193:
Sargent, Howard J (2001) Vegetation
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Appendix Total 8 Principles and 39
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promote the positive ones are made,
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