Indonesia

The indigenous people of Teluk Meranti in the Kampar Peninsula, Riau, Sumatra, are resisting efforts by a pulp and paper company to take over their customary lands.

An internal audit has revealed that the World Bank’s private sector arm – the International Finance Corporation (IFC) – has allowed commercial interests to override its social and environmental standards in making major loans to the oil palm sector in Indonesia.. The uncontrolled expansion of oil palm plantations in Indonesia has become synonymous with widespread clearance of forests and peatlands, massive CO2 emissions and the theft of indigenous peoples’ lands.

As exposed in previous WRM Bulletin issues, criminalization is part of a strategy aimed at silencing any protest generally against the extractive activities of transnational corporations (see WRM Bulletin Nº 125). It is happening all over Southern countries. And it is happening right now in Indonesia, where it has victimized another fighter of social resistance to land-grabbing by palm oil-companies in the country. 

Once more, the conflict over natural resources has played havoc on humble people. This time the criminal action took place on the settlement of Suluk Bongkal, Beringin, in the district of Bengkali, Riau Province, Sumatra.

Before the current global economic meltdown, the pulp industry had ambitious expansion plans. Although the industry was closing mills in the North, it was expanding dramatically in the South where about five million tons of new capacity was due to start up each year for the next five years. Vast areas of monoculture tree plantations have been established to feed raw material to huge new megamills, particularly in Latin America, southeast Asia and South Africa.

By Chris Lang

It has been 63 years after Soekarno-Hatta proclaimed the independence of the Indonesia Republic on August 17, 1945. Every August especially on the 17th, Indonesians all along the archipelago celebrate this nation's anniversary.

Indonesia is the world's second largest palm oil producer; together with Malaysia they account for about 80 percent of global palm-oil production. With actually around 6 million hectares of land planted with oil palm, Indonesia plans a significant expansion which is set to cover up to 20 million hectares by 2020.

The state-owned company Perhutani boasts of having “one of the highest percentages of forest plantation in the world” (http://perhutaniproducts.com/) with a land area of 2,426,206 Ha in Java and Madura Island of Indonesia. It has also the gloomy record of having severely damaged or destroyed well over half the 'state forest' of Wonosobo in Central Java (see WRM Bulletin Nº 96).

A recent study published by WWF (1) analyzes deforestation and forest degradation in Riau Province between 1982 and 2007 and identifies their main drivers: pulpwood and oil palm industrial plantations. The study shows that the fastest rate of deforestation in Indonesia is occurring in central Sumatra's Riau province, which used to have 78% of its land covered by forest. In the past 25 years, some 4.2m hectares (65%) of its tropical forests and peat swamps have been cleared for industrial plantations.

The giant pulp company PT. Riau Andalan Pulp and Paper (PT. RAPP), operating in Riau Province, is applying for a Plantation Forest Management Certificate from the Indonesia Ecolabeling Institute (LEI) Certification System. Riau-based NGOs and several regional and national NGOs are strongly challenging the application on several grounds including:

The major issue of land tenure underlies the problem of oil palm schemes in Indonesia and elsewhere. Occupying large tracts of community land where food and cash crops used to be grown and medicines and building materials were harvested, monoculture oil palm plantations erode the rights and livelihoods of local communities. Through promises, bribes, and cheating combined with the unawareness of local communities of their rights, companies move in leading to the large-scale privatisation of land and natural resources.