17.11.2014 Views

Final Land Acquisition Book English.indd - Forest Peoples Programme

Final Land Acquisition Book English.indd - Forest Peoples Programme

Final Land Acquisition Book English.indd - Forest Peoples Programme

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

6<br />

5<br />

4<br />

3<br />

Million Hectares<br />

2<br />

1<br />

0<br />

1968<br />

1978<br />

1998<br />

2004<br />

2005<br />

Figure 1.2: Areas of productive oil palm in Indonesia<br />

Oil palm plantings in Indonesia are not only expanding in total area but are also experiencing<br />

a rapid transformation of ownership. Early plantations were predominantly state-run<br />

schemes, many financed by World Bank, European Community and Asian Development<br />

Bank loans. During the 1970s and 1980s, expansion focused on developing plantations in<br />

government-sponsored transmigration schemes (PIR-Trans), in which para-statal agencies<br />

controlled nucleus estates (inti) surrounded by extensive areas made up of 2 to 5 hectare<br />

smallholdings (plasma) operated by sponsored migrants. 11<br />

Today, however, the greatest expansion is in private sector holdings, not only through<br />

the privatisation of previous state-owned enterprises but also through the establishment<br />

of extensive new plantings. Many of these private sector schemes are funded through<br />

international investments or as local subsidiaries of foreign corporations. By 2002, there<br />

were some 50 Malaysian companies operating in Indonesia. There are great local and<br />

regional differences in the extent to which private sector companies are obliged to establish<br />

smallholdings as part of these estates.<br />

22 Palm Oil and <strong>Land</strong> <strong>Acquisition</strong> in Indonesia

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!