Tag Archive | Palm Oil

Indonesia’s Palm Oil Blues Spreading to Africa: Report

Hayat Indriatno | The Jakarta Globe

Major palm oil producers accused of destroying Indonesia’s forests and driving its iconic wildlife to the verge of extinction are now taking their practices to the relatively pristine forests of the Congo Basin, an environmental group has warned.

In its report “Seeds of Destruction” released this month, the Rainforest Foundation UK said there was “a real and growing risk that some of the serious, negative environmental and social impacts resulting from the rapid expansion of palm oil production in Indonesia and Malaysia, such as widespread deforestation, social conflict and dispossession, could be repeated in the Congo Basin.”

“This report shows that some of the same major players behind oil palm production in Southeast Asia [such as Sime Darby, Goodhope, Wilmar and FELDA] are now turning their attention to Africa,” RFUK said.

The report said the companies were turning to the Congo Basin region, which includes Cameroon, the Democratic Republic of Congo and the Republic of Congo, among others, because of lower land and labor costs and preferential access to the European Union market.

It warned that unless the African governments were fully aware of how these companies were operating in Indonesia and Malaysia, they could suffer from the same problems seen in Indonesia.

“Of the companies which have been identified as being behind specific developments, or are otherwise known to be seeking oil palm land in the Congo Basin, three — Cargill, Sime Darby and Wilmar — have been found in the past to be involved in illegal and destructive oil palm development in Indonesia,” the report said, citing independent claims made by the environmental groups Rainforest Action Network, Greenpeace and AidEnvironment.

It added that the negative environmental and social impacts “typical of [palm oil] developments in Indonesia have already been well-documented at … Sime Darby’s concession in Liberia.”

RFUK listed the negative impacts as deforestation and loss of biodiversity, increased carbon emissions from the clearing of primary and peat forests, conflicts with indigenous residents over land rights, pollution of local water resources and poor working conditions for local laborers.

To avoid these problems, it recommended greater transparency in the palm oil contracts, ensuring respect for local communities and empowerment of smallholder farmers, among other measures.

The increased expansion into Africa by Southeast Asian palm oil firms grabbed headlines last month when farmers in Liberia denounced the “modern slavery” visited upon them by an Indonesian company, Golden Veroleum Liberia.

“The Indonesians came here for the first time in September 2010,” resident Benedict Manewah told AFP.

“They said, ‘We have a concession agreement, your president has sold it to us.’ Three months later they came back … and they started to destroy the properties, farmlands, crops, livestock and houses.”

Sime Darby, from Malaysia, was the subject of similar complaints in Liberia.

 

 

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5 Biggest Environmental Stories of 2012

January 03, 2013 | by Fidelis E Satriastanti | The Jakarta Globe

Confiscated illegal pet orangutans being cared for by the Sumatran Orangutan Conservation Program team, join with people around the world calling on "President Susilo Bambang Yudhoyono to save their friends, save Tripa and to Enforce the Law", in Medan, 26 April 2012. Today actions took place in 7 countries from around the world calling on Indonesian President SBY to publically add his voice encouraging urgent legal investigation and enforcement of Indonesian laws punishing criminal activities for resulting in illegal destruction of the environment in the Tripa Peat Swamp Forest. Photo: Paul Hilton/SOCP/YEL. ( EDITORIAL USE ONLY/NO SALES )

Confiscated illegal pet orangutans being cared for by the Sumatran Orangutan Conservation Program team, join with people around the world calling on “President Susilo Bambang Yudhoyono to save their friends, save Tripa and to Enforce the Law”, in Medan, 26 April 2012. Today actions took place in 7 countries from around the world calling on Indonesian President SBY to publically add his voice encouraging urgent legal investigation and enforcement of Indonesian laws punishing criminal activities for resulting in illegal destruction of the environment in the Tripa Peat Swamp Forest. Photo: Paul Hilton/SOCP/YEL. ( EDITORIAL USE ONLY/NO SALES )

It is a tradition in mass media to compile an end-of-the-year list. While the Jakarta Globe has covered “Indonesian Stories That Raised Eyebrows in 2012” and “The Biggest News Stories of 2012 Have Only Just Begun,” do not forget to take a moment to review environmental issues.
Indonesia is often dubbed as a country plagued with amnesia. Hence, here are a few of environmental stories that made headlines over the past year — those that still need to be followed up in 2013.

Illegal Wildlife Trading
Indonesian Police arrested a Depok resident in possession of dozens of stuffed rare animals and pelts in July — after a long hiatus on breaking down illegal wildlife trading.
At least 25 stuffed animals and pelts of rare and protected species were seized by the police, in Cimanggis, Depok, West Java, in the July raid.
The items confiscated included 14 tigers, two leopards, one clouded leopard, a lion and three bears. There were also two sacks full of tiger pelts, as well as a stuffed tiger head and four deer heads. This was considered as the biggest bust involving animal body parts.
In August, the Forestry Ministry arrested an antique dealer selling the skin of an endangered Sumatran tiger. At least four people were caught red-handed in Cilandak, South Jakarta, while attempting to sell a Sumatran tiger skin and a Javan leopard pelts.
Both cases violated the 1990 Natural Resources Conservation Law, for which the perpetrators could get up to five years in prison and up to Rp 100 million ($10,325) in fines.
The suspect in July bust, identified as Feri, was charged under the aforementioned law but was later released on bail. Both cases triggered fierce campaigns on major online shops in the country to stop facilitation transactions on rare and protected animals.

Orangutans Let Free
In 2012, there were still news about orangutans being kept as pets. But over the past year, at least 44 orangutans have been released and brought back into the wild from the Borneo Orangutan Survival Foundatio’s Nyaru Menteng Rehabilitation Center in Central Kalimantan.
Meanwhile, another six orangutans were set free from the Samboja Lestari Orangutan Reintroduction Program and Land Rehabilitation in East Kalimantan. The orangutans were sent to the Kehje Sewen forest, an ecosystem restoration area in the province.
There are still at least 600 orangutans waiting to be released. This release will contribute to the target set by the presidentially-mandated Indonesian Orangutan Conservation Action Plan 2007-2017. The plan was announced by President Susilo Bambang Yudhoyono at the Climate Change Conference in Bali in 2005.

The Birth of Andatu, Rare Sumatran Rhino
2012 was dubbed as the International Year of Rhino. A critically endangered Sumatran rhinoceros gave birth in captivity in June in more than a century.
The birth was recorded in history as the first successful breeding outside its natural habitat. The male calf was named “Andatu,” an acronym from his father “Andalas” and his mother “Ratu.” In Bahasa Indonesia, Andatu means “Anugerah Dari Tuhan” or Gift From God.
Andatu was born at the Sumatran Rhino Sanctuary in Way Kambas National Park, Lampung.
Indonesia, where one of only 11 nations where rhinos are found, is lucky to be the birthplace of Andatu. The country has two kinds of rhinos: the one-horned Javan rhino with only 35 left in Ujung Kulon National Park in West Java and the two-horned Sumatran Rhino, which only 200 left in the wild.

Tripa Peat Swamp and Environmental Crime
The Tripa peat swamp was the highest profile case in Indonesia since 2011. The debacle caught intense attention both from the Indonesian authorities and the international world.
The case was brought into attention by local people in Aceh in late 2011 revealing issuance of a permit to clear 1,605 hectares of forest inside the Leuser ecosystem in Nagan Raya district by then-governor Irwandi Yusuf to a plantation company Kalista Alam in the Tripa area. The permit issuance was a breach to Indonesia’s commitment on forest moratorium, which was pledged in 2009.
The Aceh chapter of the Indonesian Forum for the Environment (Walhi) then filed a lawsuit against Irwandi to revoke the permit. The Indonesian authority, under the REDD (Reducing Emission from Deforestation and Degradation) task force, also took action by requesting the Ministry of Environment to conduct investigation over the case.
Both institutions have claimed that the permit was violating the moratorium agreement. In September this year, Walhi won the lawsuit at the Medan State Administrative Court, North Sumatra, which called for Aceh administration to scrap the permit awarded for the company.
The ruling was then followed through by the now-elected Aceh governor Zaini Abdullah in September, who finally revoked the permit of the company in Tripa.
The Tripa forest, part of the rich Leuser Ecosystem, is home to the world’s densest population of critically endangered Sumatran orangutans and one of the few places on earth where orangutans, Sumatran tigers and sun bears can still be found living side-by-side.
There is still ongoing court process over the Ministry of Environment.

Hazardous Toxic Waste
The beginning of 2012 started off with 113 containers of dangerous and hazardous waste mixed with scrap metals entered Tanjung Priok harbor shipped from England and Netherlands.
This hazardous waste was said to be the “largest shipment” ever transported into the country and became an important issue from Environment Minister Balthasar Kambuaya and Finance Minister Agus Martowardojo at that moment.
The 113 containers were sent back to its original country: 89 containers to England and 24 containers to Netherlands. It did not stop there. The customs widened its inspection and targeted an additional 3,446 containers from Tanjung Priok, 130 containers at the Tanjung Perak port in Surabaya, 11 containers at the Tanjung Emas port in Semarang and 77 containers at the Belawan port in Medan.
As a result, the ministry was bombarded with protesters claiming from scrap metal association and demanded to release the containers as they might lose their income.
From the law enforcement side, the ministry is currently investigating 254 containers and preparing for legal actions based on the 2009 Law on Environmental Management and Protection, the 2008 Law on Waste Management and the 1995 Customs Law for violating the documents. Currently, eight people were declared as suspects: two Chinese and the rest were Indonesians.

Indonesian court fines palm oil giant for tax evasion

Channel News Asia

JAKARTA: Indonesia’s Supreme Court ordered a major palm oil company to pay more than $390 million to the state for tax evasion, a judge said on Friday, in a case likely to set a precedent in the graft-ridden nation.

The court found Asian Agri and more than a dozen of its subsidiaries guilty of “deliberately not filling tax forms properly between 2002 and 2005”, marking the country’s first prosecution in a major corporate tax case.

Head judge Djoko Sarwoko told AFP said the company was ordered to pay back state losses of 1.26 trillion rupiah ($130.5 million) and was fined an additional 2.52 trillion rupiah to be paid within a year.

The case is seen as breakthrough in Southeast Asia’s largest economy, where sweeping tax reforms introduced in recent years have been met with hostile resistance from big business.

Sarwoko said that the ruling – made on December 18 but only publicised this week – would set a precedent for at least nine major tax crime cases in the pipeline.

Asian Agri is one of Asia’s biggest palm oil producers, exporting three million tonnes of palm oil in 2011 with more than 160,000 hectares of plantations on the island of Sumatra, according to its website.

It is a subsidiary of Royal Golden Eagle (RGE), a Singapore-based conglomerate of palm oil, pulp and oil and gas firms owned by Sukanto Tanoto, Indonesia’s seventh-richest tycoon, according to Forbes.

Environmental groups have also long accused RGE’s pulp and paper company Asia Pacific Resources International (APRIL) of logging on protected carbon-rich peatland in Sumatra.

The Asian Agri case began in 2006 when a former financial controller at the company accused of embezzling money from the firm reported that the company had evaded tax.

The case was thrown back and forth between the Tax Office and the Attorney-General’s Office, raising criticisms that government institutions and law enforcers were reluctant to address major tax crimes.

“Big multi-national companies are not unattached to political and business operations. That’s why tax cases have proceeded at a snail’s pace,” Firdaus Ilyas from Indonesia Corruption Watch (ICW) said.

Ilyas said that ICW research showed resource-based companies were the most likely to evade tax in Indonesia.

A report released this month by Washington-based Global Financial Integrity ranked Indonesia ninth for illicit financial outflows among the world’s developing nations, losing $109 billion in crime, tax evasion and corruption between 2001 and 2010.

Transparency International ranks Indonesia 118 in its transparency index, one of the lowest of 174 countries, assessed on par with Madagascar and Egypt.

– AFP/de

 

Save Orangutans and The Tripa Peat Swamp Forest

December 2012: The Sumatran orangutan is losing habitat fast. Pristine forest in Indonesia is being carved up, set on fire and converted into palm oil plantations at a shocking pace. The drive for profit is seeing palm oil companies also move into areas of protected forest – like the Tripa Peat Swamp Forest in Aceh. Home to many iconic species, including the densest population of the last remaining 6,600 Sumatran orangutans, Tripa is also a critical carbon storehouse for the planet.

The destruction of Tripa is having disastrous consequences: for the wildlife and biodiversity which is perishing with it, for the local communities whose livelihoods depend upon it, and for all the rest of us as carbon emissions escalate. Tragically, over 80% of orangutans in Tripa forest are estimated to have perished as a result of this habitat destruction.

But in a case that could make history, two palm oil companies are now facing court for operating illegally in Tripa. The tireless efforts of local and international NGOs have pushed this issue forward and it is about to become a real test case for Indonesia. If the law is upheld and the law-breakers are punished then there is hope for protecting other areas of forest in Indonesia in the future. If not, the law loses even more ground and greed gets the green light. International public pressure is urgently needed to help uphold Indonesia’s environmental laws and to take a stand against this blatant exploitation for the benefit of so few. Please add your voice and help show that the world is watching this case.

What you can do right now:

1. Sign this petition to demand that the law be upheld in the Tripa case:
http://www.change.org/saveTripa2

2. Find out more and donate to the campaign at:
http://www.sumatranorangutan.org/

3. Like and Share this video as widely as possible.

PRESS RELEASE: Walhi makes historic legal intervention as rogue palm oil company tries to sue Governor of Aceh over cancellation of controversial palm oil permit in Tripa Peat Swamp Forest

PRESS RELEASE

14/12/2012 – FOR IMMEDIATE DISTRIBUTION

Walhi makes historic legal intervention as rogue palm oil company tries to sue Governor of Aceh over cancellation of controversial palm oil permit in Tripa Peat Swamp Forest

[Banda Aceh]  In an unprecedented legal move, on Thursday 13th December in the Administration court of Banda Aceh, Indonesia, Walhi Aceh (Friends of the Earth Indonesia) motioned to join the Governor of Aceh Province as a co-defendent in a lawsuit brought against him by palm oil company PT. Kallista Alam, whose controversial palm oil concession in the Tripa peat swamp forests of Aceh he recently cancelled after law courts found clear legal infractions in the issuance of its plantation permit.

“WALHI’s move to intervene like this is the first ever of its kind in Indonesia, and serves to emphasise just how serious we are in our support for the Governor’s strong stance in upholding the law against illegal permits in the province”, stated Walhi Aceh Executive Director, TM Zulfiker. “In regard to the intervention”, he continued, “WALHI indeed have a serious interest in this case and wish to be represented in court. We must ensure the Administrational Court in Banda Aceh fully understands the legal processes that have led to this new case being filed, in particular the course of events that followed after Walhi won the appeal in its case against the company at the Administration Court in Medan, which led directly to the Governor taking action and revoking the company’s permit”.

Luhut MP Pangaribuan, head of the legal team representing PT Kallista Alam, objected to the motion, stating that WALHI Aceh have no interest in the case but Zuhri, the lawyer working for WALHI Aceh, immediately refuted this, stating that  “The motion to join the case is based on the legal precedent and actions of the case filed by WALHI against the previous Governor of Aceh, Irwandi Yusuf, and  the company PT Kalista Alam, for legal irregularities in the now revoked permit. The permit was revoked by Aceh’s current Governor, Zaini Abdullah, after a court order requesting him to do so was issued by the Administration Court in Medan. This is precisely why we wish to stand by that decision and support the Governor for taking the correct legal course of action in revoking the permit”.

Today there are several ongoing legal cases related to the company PT Kallista Alam, as explained by Kamaruddin, a lawyer representing Tripa Community. “Firstly, there was the original case filed by WALHI Aceh against the company and former Governor for the issuance of the illegal permit. In this case, the judges in the administrational court of Medan agreed with WALHI Aceh, that there were indeed a number of legal infractions in the issuance of the permit. It was this decision that resulted  in the current Governor cancelling the permit. Now the company is attempting to appeal this earlier decision with the Supreme Court in Jakarta”.

“Secondly, and in a separate case, PT Kallista Alam is attempting  to sue the new Governor over the permit’s cancellation in the administrational court of Banda Aceh, even though it was revoked in full compliance with the law, as clearly demonstrated by the judges decision in the case described above. It is this new lawsuit in which WALHI is seeking to intervene and join, as a co-defendant standing alongside Governor Zaini Abdullah.”

 “Thirdly, also in a seperate case, the Ministry of Environment and the Attourney Generals Office are taking legal action against the PT Kallista Alam for legal infringements in the field, at the district court of Meulaboh, in West Aceh.”. Kamaruddin went on to explain, “the main problem for all of us is that whilst these lengthy court battles are ongoing, the destruction of the unique Tripa peat swamp forests by Kallista Alam and other companies is continuing unchecked. All of the companies in Tripa are still actively commiting crimes in the field, and PT Kallista seems to be deliberately trying to prolong proceedings and slow down the cases against them”.

As the court was settling for Tuesday’s hearing in Banda Aceh, an angry protest was heard outside the courtroom, “PT Kallista Alam has destroyed Tripa and is selling out our country”, Fery, a protester from the coalition of students and community for Tripa, shouted through a megaphone to a mob of over 50 university students who had gathered, chanting, singing and carrying placards, to affirm their support for Aceh’s Governor and his stance against law breakers.

“It’s blatantly obvious there have been numerous crimes committed in Tripa relating to spatial planning law, environmental law, and forestry plantation law. There have also been clear breaches of the Indonesian Government’s moratorium on new plantations in primary forests and peatlands, which resulted from the billion dollar agreement between Indonesia and Norway”, stated Deddy Ratih, Spatial Planning Campaigner for WALHI Indonesia. “While WALHI is taking action in support of Aceh’s Governor, illegal actions in the field must also be halted by direct intervention of the police and both Provincial and National Government. Even today, despite all the legal wrangling in the courts, canals continue to drain the last of the life from Tripa’s protected peat swamps and PT Kallista Alam is simply playing games, as it tries to prolong and delay implementation of the law. The reality is that every day plantation activities in the field are slowing killing Tripa. All of the companies operating there must be reviewed and have their permits cancelled if they are not in full compliance with the letter of the law. Activities must be stopped and all drainage canals blocked immediately if this critically important and unique ecosystem  is to have any chance of recovery”.

“No matter what the eventual outcomes of the various legal process taking place, it will all be meaningless unless strong and decisive action is taken right now on the ground, all the permits should be revoked immediately and work begin to restore the damaged areas”, he reiterated.

Public information on the appeal lodged by PT Kallista Alam with the Supreme Court is limited, and a decision on whether the appeal will be allowed to proceed or not is considered likely to take place ‘in camera’ (behind closed doors).

For further comment or information please contact:

Deddy Raith – ube.hitar@gmail.com

Spatial Planning Campaigner, Walhi Indonesia (Friends of the Earth Indonesia)

Yuyun Indradiyuyun.indradi@greenpeace.org

Political Campaigner, Greenpeace Indonesia

REDD+ Indonesia – Tripa a Catalyst for Change

Indonesia plans to use Rawa Tripa in its westernmost province of Aceh, where the country had a recent victory in peatlands protection, as learning grounds to improve forest governance and legal enforcement through license review.

This video gives description about the collaborative coordination between NGO’s, Local and Central Government efforts to reduce deforestation and forest which took swift actions.

PT. Kallista Alam suing Aceh Government in regard to revoking permit

Original Article in Bahasa Indonesia is available here Free translation by Adji Darsoyo

Banda Aceh – Legal Councelors of PT. Kalista Alam, Alfian C. Sarumaha assisted with his colleagues from Luhut Marihot Parulian Pangaribuan (LMPP) law firm,  Rebecca F. Elizabeth, stated that this is still the first phase, which is the inspection of the preparation. “It’s not yet open for public,” said Alfian. He explained that PT. Kalista Alam filed law suit against the Governor of Aceh, Zaini Abdullah, upon the Decree of the Withdrawal of PT. Kalista Alam’s permit in Tripa. “We questioned the Governor on the issuance of the particular Decree,” added Alfian.

The agenda on the next court session still waits for the schedule from the Judge of the Administrative Court Banda Aceh. “Indeed, being the litigants, we are requested to improve the law suit,” said Alfian to The Globe Journal on Thursday (29-11-2012) at the court in Banda Aceh.

Head of the Legal Division and PR of the Government of Aceh, Makmur, met at the court said that his team are ready to challenge the law suit. “The object of the dispute is the Decree of Kalista Alam’s Permit Withdrawal for Tripa,” he said.

According to Makmur, the objective of the withdrawal of Kalista Alam’s permit upon 1,605 ha are explicitly addressed within the Decree based on the decision of the Administrative High Court of Medan upon WALHI Aceh’s appeal.

“We are ready to challenge the law suit, we have prepared 6 legal advisors,” emphasized Makmur stating that it is still in the phase of inspection of preparation.

Base on The Globe Journal’s observation, the inspection session preparing both litigant and plaintiff have been conducted in a closed session in the office room of the Vice Chairman of the Judge of the Administrative Court of Banda Aceh, Yusri Arbi. The case is registered under the number  18/G/2012/PTUN BNA. The litigant is Subianto Rusid and the plaintif is the Governor of Aceh.

PT Kalista Alam’s permit withdrawal is contained in the Decree of the Governor of Aceh No 525/BP2T/5078/2012 dated on 27 September 2012. The decree also revoked the previous decree of the former governor (Irwandi Yusuf) with the number 525/BP2T/5322//2011 re Plantation Permit for PT Kalista Alam covering 1.605 ha.

According to Makmur, the withdrawal was based on the decision of the Administration High Court of Medan through a document No. 89/B/2012/PT TUN-MDN dated on August 30, 2012. Amongst the decisions is to grant the litigant (WALHI Aceh) and to order the plaintif (the Governor of Aceh) to withdraw the challenged decision of Administrative Court granting the Plantation Permit for PT Kalista Alam.

More over, the Article 45 A point 2C of the Law No. 5/2004 on the Amendment of the Law No. 14/1985 on the Supreme Court declared that any dispute on state administrative procedure, which challenged the decision of a regioanal officials, than this particular case does not fulfil any single requirement for casation. (The Globe Journal)