DIRTY BANKERS

18 May 2011, PT Henrison Inti Persada:
Recent forest clearance in the Noble
concession in Sorong, West Papua,
documented during field work by the
Environmental Investigation Agency.
©EIA
peatland, with the exception of 1,509ha of deep peat which
will be set aside as an HCV area. 282 Only peat areas with a depth
of over three metres will be set aside for conservation. 283 This
would be in breach of RSPO criteria which ban new planting on
peat of any depth of more than 100ha in any concession. 284
Noble Group has subsequently stated that it intends to
comply with these criteria and that no new development on
peat will take place. 285 However, it has yet to publish a revised
management plan for PT PAL that ensures all peatland areas
are protected.
FLOODING AND LOCAL CHALLENGES
TO PT PUSAKA AGRO LESTARI
In October 2014 serious flooding took place in Miyoko and
Aikawapuka villages, downstream from PT PAL. 286 Kamoro
indigenous people in the villages had to evacuate, and some had
reportedly yet to return by mid-2015. 287 Several local figures,
including the bishop of Timika, blamed deforestation in PT PAL for
the flood and urged the local government to take a strong stand to
address the negative effects of the company’s operation. 288
The local bupati (elected district head), Eltinus Omaleng,
followed up this criticism in December 2014 by visiting the site
together with local police and military leaders, and informing the
company that he was revoking its licence to operate. 289 PT PAL
announced its intention to contest that decision, claiming the
support of the Director General of Plantations at the Ministry of
Agriculture. 290 As the company was in possession of a leasehold title
for cultivation purposes (land cultivation right/Hak Guna Usaha), it
could make a strong legal argument that the bupati would not have
the legal authority to call a halt to a business in this way.
The bupati issued a new decree on 15 March 2015 authorising
the plantation to resume work and stipulating certain conditions
aimed at improving the ways the plantation could benefit the
people of Mimika. 291 However, the continuing deforestation
implies a risk that flooding could reoccur. In a meeting with local
government in July 2016, PT PAL reportedly acknowledged
its plantation had caused negative impacts along the Kamoro
and Iwaka Rivers, but said that reforestation initiatives by the
company would help to overcome the problem. 292
FREE, PRIOR AND INFORMED CONSENT
There has been substantial community opposition to PT HIP by
the Moi Kelin indigenous people who live around the plantation
area. Although clan leaders signed documents in 2006
releasing their customary land to the company, research by the
NGO Environmental Investigation Agency has indicated that
these agreements were exploitative and that there are strong
indications that communities were deceived. 293 Compensation
was very low – the Gilik clan was paid only Rp20,000
(US$1.51) per hectare for 420ha of land, 294 and the Klasibin
clan were reportedly given Rp22,600 (US$1.71) per hectare
and the Do clan Rp33,000 (US$2.50) 295 per hectare. 296 At
the time PT HIP had promised to support education and
healthcare, build new housing and provide clean water. In
2014 – some four years after Noble acquired the concession –
community members reported that they had yet to see these
programmes materialise – and claimed their access to clean
water had actually deteriorated, as local streams had been
polluted by the company. 297
In the summary of its social impact assessment and NPP
notification submitted to the RSPO, PT HIP does not claim
that it has obtained the free, prior and informed consent of
34 DIRTY BANKERS