Promised Land: Palm oil and land acquisition in Indonesia

197 Pages·2006·2.83 MB·English

Promised Land: Palm Oil and Land Acquisition in Indonesia -
Implications for Local Communities and Indigenous Peoples
was fi rst published in 2006 by
Forest Peoples Programme, Perkumpulan Sawit Watch,
HuMA and the World Agroforestry Centre.
Copyright@ FPP and SW
All rights reserved. Sections of this book may be reproduced in magazines and
newspapers provided that acknowledgement is made to the authors and to Forest
Peoples Programme and Perkumpulan Sawit Watch.
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This publication is also available in Bahasa Indonesia.
Marcus Colchester, Norman Jiwan, Andiko, Martua Sirait, Asep Yunan Firdaus,
A. Surambo, Herbert Pane
Promised Land: Palm Oil and Land Acquisition in Indonesia - Implications for Local
Communities and Indigenous Peoples
Photo Cover: Marcus Colchester.
ISBN: 979-15188-0-7
Promised Land
Palm Oil and Land Acquisition in Indonesia:
Implications for Local Communities and Indigenous Peoples
Marcus Colchester, Norman Jiwan, Andiko, Martua Sirait,
Asep Yunan Firdaus, A. Surambo, Herbert Pane
Acknowledgements
The authors would like to thank the following individuals and institutions for their
help and collaboration in carrying out this research. From Lampung we would like to
thank: Bpk. Kurniadi/Kawan Tani; Bpk. Saifullah/Kawan Tani; Bpk. Wathoni Nurdin/
K2HL; Bpk. Mukri Priatna/Walhi Lampung; Bpk. A. Zainuddin (Didi)/YBWS; Bpk.
Kusworo/WCS; Bpk. Fathullah/Watala; Bpk. Ichwanto Nuch/Watala; Bpk. Armeyn/
Fakultas Hukum UNILA; Ibu. Nurka Cahyaningsih/ICRAF; Ibu. Rafi ta/ICRAF; Bpk.
Gamal Pasya/ICRAF; Bpk. Herdi/PMPRD; Bpk. Alifi nnor/PMPRD; Bpk Syahril Indra
Bangsawan/Saibatin Marga Bengkunat; Bpk. Wahyudi/Warga Pekon Tanjung Kemala;
Bpk. Ajan/Pengurus KPPS Wil IV; Bpk. Amrullah/Posko Reformasi Mhs dan Rakyat
Bersatu; Bpk. Djasran/Ka. BPN Lampung Barat; Bpk. Mujiono/BPN Lampung Barat;
Bpk. Warsito/Kadishut dan PSDA Lampung Barat; Bpk. Suwandi Muctar/Disbun
Lampung Barat; Bpk. Indra/Bappeda Lampung Barat; Ibu. Ike/Bappeda Lampung
Barat; Staf Kecamatan Bengkunat, Lampung Barat. From West Kalimantan we would
like to thank: Bpk. Pelandus, Former of Kepala Seksi (Kasi) Hak Atas Tanah BPN
Kabupaten Sanggau; Bpk. C. Djaelani/GRPK, Gerakan Rakyat untuk Pemberdayaan
Kampung, Sanggau District.; Bpk. Matius Anyi, Dayak Pandu; Bpk. Marius Jimu, Dayak
Pandu; Bpk. Protasius Dolah A, Dayak Ribun; Bpk. Suria Surbakty, BPN Sanggau,
Kasi. Pengukuran; Drs. Budjang, AS. SH, MBA, MSc/ Head of BPN Sanggau; Bpk.
Abdias Yas/LBBT; Bpk. C. Kanyan/LBBT; Bpk. Heronimus/LBBT; Bpk. Masiun/
Segerak; Bpk. Thomas Daliman/UNTAN; Ibu. Erma Ranik/AMA Kalbar; Ibu. Mina
Susana Setra/AMA Kalbar; Ibu. Mona/GRPK Sanggau; Bpk. Alexander Cion/Kop.
Rindu Sawit; Anggota Lembaga Ketemenggungan Bidoih Mayou/LKBM; Bpk. John
Bamba/Institut Dayakologi; Bpk. Stephanus Djuweng/Pancur Dangeri; Ibu. Ilahang/
ICRAF Sanggau; Bpk. Budi Soesilo/ICRAF Sanggau; Kelompok Tani di Sadang Baru,
Desa Trimulyo, Kec Mukok; Bpk. Yohanes/Walhi Kalbar; Bpk. Paulus Hadi/Anggota
DPR Kab. Sanggau; Ibu. Novi Sirait/Bappeda Prop. Kalbar; Bpk. AS. Bujang/Ka. BPN
Sanggau; Bpk. Pontas Sihotang/Ka.Disbun Sanggau; Staf Kecamatan Mukok, Kab.
Sanggau; Pak Donatus Djaman/ Mantan Ketua DPRD Kab. Sanggau; Drs. Willem Amat/
Tokoh masyarakat; Pak Paulus Hadi; Pak Suriyanto/PTPN XIII; Dr. Afrizal Saragih,
Bpk. Dalimunte, Bpk. Suriyanto/PTPN XIII; Kepala Pariwisata dan Penanaman Modal
Daerah Kabupaten Sanggau; Masyarakat adat peserta lokakarya Bodok wilayah kebun
PTPN XIII, PT. MAS, dan PT. SIA, serta PT. CNIS. From West Sumatra we would
4 Palm Oil and Land Acquisition in Indonesia
especially like to thank: Bpk. Zulkifl i/Tokoh pemuda Nagari Kapar; Ibu. Mai/Tokoh
Perempuan Nagari Kapar ; Bpk. Alfon/LBH Padang; Bpk. Vino Oktavia/LBH Padang;
Bpk. Teguh/Walhi Sumatra Barat; Bpk. Heri Pasetyo/Walhi Sumatra Barat; Dr. Afrizal,
Universiti Andalas; Bpk. AW Boyce/Conservation International; KAN Pasaman Barat;
Ketua DPRD Pasaman Barat; Bupati Pasaman Barat; Kepala BPN Propinsi Sumatra
Barat; Kepala Dinas Pariwisata dan Investasi Propinsi Sumatra Barat; Kepala BPN
Propinsi Pasaman Barat; Bapedalda Propinsi Sumatera Barat. Finally, at the national level
we would like to thank, in particular: Ibu Lisken Situmorang, Bpk. Dudy Kurnia, and Bpk.
Chip Fay of the World Agroforestry Centre, Bogor; Bpk. Patrick Anderson; Bpk. RA
Sihaloho/Deptan; Bpk. Ali Arsyad/Dephut; Bpk. Iman Santoso/Dephut; Bpk. Binsar
Simbolon/BPN, and at the international level: Eric Wakker/Aidenvironment; Lindsay
Hossack and Louise Henson/FPP; and Serge Marti. This research and publication was
funded by Stichting Doen, Ford Foundation, Novib, Hivos and the Swedish Society for
Nature Conservation. It was also supported by a large number of other individuals and
organisations in Indonesia and abroad that are too numerous to mention here. We take
this opportunity of thanking them are all for their support. None of these persons or
institutions are responsible for the fi ndings as they are presented here.
Acknowledgments 5
Contents
Executive Summary 11
Chapter 1 : Introduction: 18
1.1 Reason for and scope of the study 18
1.2 Methods, data availability and limitations 19
1.3 Global and national trends 20
1.4 Land acquisition projections 25
Chapter 2 : Towards Responsible Palm Oil Production 32
2.1 What is RSPO and the draft standard? 32
2.2 Indonesian experiences with including human rights in
certifi cation and legality verifi cation 36
2.3 Problems for inclusion of smallholder friendly criteria 38
Chapter 3 : The Normative Framework - Land Acquisition for New
Plantings 42
3.1 Types of oil palm companies 42
3.2 Government policy on palm oil development 44
3.3 Government policies towards indigenous peoples’
institutions 46
3.4 Land acquisition in non-forest areas 48
3.5 Land acquisition in forest areas 51
3.6 Policies regulating forest conversion 65
Chapter 4 : Case Studies 72
4.1 PT KCMU 73
4.2 PT MAS 93
6 Palm Oil and Land Acquisition in Indonesia
4.3 PTP XIII 102
4.4 PT CNIS 110
4.5 PT SIA 125
4.6 PT PHP 128
Chapter 5 : Legal Analysis 166
5.1 Legal analysis of research fi ndings 167
Chapter 6 : Implications and Recommendations 173
6.1 Legal reform 174
6.2 Procedural reform 177
6.3 Oil palm policy reform 181
6.4 Implications for standard setting 184
References 187
Appendix 194
Content 7
Acronyms
ADB Asian Development Bank
AMDAL Environmental Impact Assessment with mitigation plan
ANDAL Environmental Impact Assessment
APL Non-forest zone (‘area of other uses’)
BAL Basic Agrarian Law
BAPPENAS Ministry of State Planning
BFL Basic Forestry Law
BKPM Investment Coordination Board
BPN National Land Agency
BW Boswessen (Forest Boundary)
CPO Crude Palm Oil
DfID Department for International Development (UK)
DPD Regional Representative Council
DPR Parliament
DPRD District legislature
EC European Community
FELDA Federal Land Development Authority
FFB Fresh fruit bunches
FoE Friends of the Earth
FPP Forest Peoples Programme
FSC Forest Stewardship Council
GAPKI Indonesian Palm Oil Association
HGU Company leasehold on State land for buildings
HGU Company leasehold on State land for agricultural use
HPH Logging Concession
HPK Conversion Forest
HPT Production Forest Area
8 Palm Oil and Land Acquisition in Indonesia
HSBC Hong Kong and Shanghai Bank
HTI Timber Plantation Concession
ICRAF World Agroforestry Centre
IDR Indonesian rupiah – the local currency
IPK Timber Cutting Permit
KUD State-run farmers cooperative
LEI Indonesian Ekolabelling Institute
KDTI Special Purpose Area
MoA Ministry of Agriculture
MoF Ministry of Forestry
MPOA Malaysian Palm Oil Association
MPR House of Representatives / National Assembly
NES Nuclear Estate Smallholder scheme
NGO Non-Government Organisation
PIR Nucleus Estate Smallholder Scheme
PKI Indonesian Communist Party (banned in 1966)
PMA Foreign Capital Investment
PMDN Domestic Capital Investment
PMPRD Repong Damar Farmers Union
PNG Papua New Guinea
PPAT Land register offi cer
PROLEGNAS National Programme for Legal Reform
PT CNIS Citra Nusa Inti Sawit Company Limited
PT KCMU Karya Canggih Mandiri Itama Company Limited
PT MAS Mitra Austral Sejahtera Company Limited
PT PHP Permata Hijau Pasaman Company Limited
PT PMP Ponti Makmur Sejahtera Company Limited
PTPN State-owned plantation company
PT PPL Panji Padma Lestari Company Limited
PT SIA Sime Indo Agro Company Limited
RSPO Roundtable on Sustainable Palm Oil
SHM Land Ownership Title
SK Decree
Acronyms 9
SKT Land transfer letter issued by village head
SPPT Letter Notifying Annual Tax Payment
TGHK National process for classifying forest areas
UN United Nations
UPSB Large-scale plantation (over 1000 ha.)
UPSBM Medium-scale plantation (200-1000 ha.)
UPSBK Small-scale plantation (25-200 ha.)
UUPA Basic Agrarian Law
WALHI Friends of the Earth-Indonesia
WASDAL Government land survey team
WRM World Rainforest Movement
WWF World Wide Fund for Nature
10 Palm Oil and Land Acquisition in Indonesia