INDONESIA
Tempo-Mar 22
Conflicts between local communities and palm oil companies would not have dragged on for so long had the government been a good referee. It is fine to maintain a healthy business climate for the palm oil industry, but sidelining people’s rights that have been trampled on by corporations will certainly spell disaster in the long run.
A decade-long conflict between the Wilmar Group and Nagari Maligi villagers in Pasaman Barat, West Sumatra, has centered on land acquisition. The locals felt the company encroached on their land, but the company denied it. There are also allegations that the company has tried to seduce a handful of local leaders with compensation to silence the problem. Regrettably, giving the pretext of attempting to put the case in a clear perspective, law enforcement authorities kept going around circles. If left unchecked, the conflict can potentially trigger social unrest.
The government has been lenient toward delinquent companies which encroach on protected forests, including tribal lands. Undeniably, palm oil is a source of huge income for Indonesia, contributing to Rp314 trillion in exports in 2017, or 14 percent of the country’s total export. Under these circumstances, Indonesia clearly depends on the industry.
However, illegal plantations certainly must not be tolerated. At present, it is estimated that there are millions of hectares of illegal palm fields that are still in operation. Out of the 11.7 million hectares of Indonesia’s palm oil fields, hundreds of thousands of hectares are developed via forest encroachment.
These violations have taken place under the government’s watch for years. If there is any goodwill, it should be quite simple to check the legal status of fields and bring violators to court. Indeed, the anti-corruption agency has investigated violations in this sector. Alas, their only recommendation was better forestry management.
The country suffers double losses as long as the government continues to turn a blind eye to illegal plantations: first, the loss of tax revenues as illegal plantations are not registered, and the damage to forests and the ecosystem.
Palm oil consumes a lot of water. One tree absorbs 20 to 40 liters of water daily. This is twice the amount needed by other plants, such as coffee and cocoa. The surrounding wildlife has also lost much of their habitat to palm oil plantations.
Malaysia has successfully managed to guard its forests against encroachment by palm oil producers by limiting plantation fields to six million hectares. This policy sent Malaysian palm oil companies aggressively seeking to open fields in other countries, including Indonesia.
Indonesia should not feel embarrassed to copy Malaysia’s model. The Malaysian government supports the palm oil industry without sacrificing its people. Their crops are also of far more better quality because they continuously develop superior varieties. Indonesia plantations produce four tons of fresh fruit bunches per hectare, whereas Malaysia yields a minimum of 10 tons per hectare. Conflicts between managements and local communities there are almost nonexistent.
The government must keep a tight watch on the ongoing conflicts. The majority of the 659 agrarian conflicts that broke out in 2017 involved palm oil businesses. Until they are resolved, they will remain ticking time bombs.
(first published in Tempo – https://en.tempo.co/read/news/2018/03/22/314916902/Palm-Oil-Time-Bomb)
