Local policy-making mechanisms - Forest Climate Center

Sudirman, Dede Wiliam and Nely Herlina5.2.1 Forced land occupation, permitmanipulation and pollution byPT. Inti Indo Sawit Subur (PT.IIS)PT. IIS is one of seven CPO (Crude Palm Oil)companies in the province of Jambi; thesecompanies make a significant contribution tothe PAD in Tanjabbar. PT. IIS, a large company,received a centrally issued business permit(Hak Guna Usaha, HGU) 59 in 1990 to openan oil palm plantation and processing businesscovering an area of 3500.3 ha in TanjabbarDistrict. PT. IIS occupied land that had beenmanaged traditionally by local communitiesfor generations. It occupied the land by force:PT. IIS employed the military and the police toopen its plantation area. It evicted local peopleon the basis that the land was company property.It also claimed that the land was ‘abandoned’.An oil palm plantation area used by PT. IIS inthe Subdistrict of Merlung also extended 1000ha beyond the area original designated to it bycentral government. This fuelled the conflictbetween the community and the company. Atthat time, the villages in the Tungkal Ulu areawere living in very poor conditions due to thelack of available agricultural land. Severalvillages, including Penyabungan, LubukTerap, Rantau Badak, Pulau Pauh, Merlungand Tanjung Paku, lost their land during theforced occupation.In 1998, with the fall of the New Orderregime and the rise of the reformasi movement,people in most villages began to reclaim theircustomary (adat) lands. By mobilizing themasses, they boycotted the activities of PT.IIS and demanded their land back. Followingdecentralization, the district governmentfacilitated talks between the community andthe company. The people demanded the returnof the adat land and a reassessment of the sizeof their land. Finally, an area of 0.83 ha wasreturned to each household in the villagesof Merlung, Lubuk Terap, Penyabungan,Rantau Badak and Pulau Pauh, with a furtheragreement that the government would continuethe re-assessment process.5.2.2 Forestland occupation anddeforestation by PT. DasaAnugerah Sejati (PT. DAS)In 1991, PT. DAS obtained an HGU to establisha crude palm oil plantation and processingplant. This permit was allocated for agriculturalland and a forest area covering 9077 ha in theSubdistrict of Tungkal Ulu 60 . No fewer thannine villages were located in this area.Farming areas in the new concession hadbeen managed traditionally for generations, andunder customary law it was recognized as beingcollectively owned for the benefit of the localcommunities. However, the company took overthe land without giving proper compensation.Some villagers received compensation for thevalue of the crops growing on their land (rubber,durian, etc.) at the time, but they received nocompensation for the long-term loss of theirland. Many villagers were forced to becomehired labourers, working for the company onwhat had previously been their own farmland.The local people’s poverty worsenedbecause PT. DAS preferred not to employlocals; instead, it brought in skilled labour fromJava and other islands. The company justifiedthis by claiming that the local people were notskilled in factory or plantation management.Local people were hired only as daily labourers(buruh harian lepas, BHL) on a daily wage ofRp. 11 000 or US$ 1.20 (US$ 1 = Rp. 9000).As casual labourers, they have no clear contractand can be laid off without compensation ornotice.Central government in Jakarta gavelocal people no opportunity to question theallocation of their lands to a private companyor to demand – at the very least – employmentfrom the company. To date, not one single localperson is employed under contract as either afactory or plantation labourer.To establish its plantations, PT. DAS clearedthe primary forests around the local people’sfarmland. The forests had been a source ofincome for local people, and had maintained thewater supplies for their farms. With its permitfrom central government in hand, the companyturned the natural forest into rubber and oil31