A Century of Commercial Oil Palm in Indonesia

A Century of Commercial Oil Palm in Indonesia
Who are the Winners, Who are the losers?
An Alternative Conference of a Century of Commercial Oil Palm in Indonesia
Medan, North Sumatera, 26-29 March 2011


1. Background
Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI) or “Association of Corporations of Oil Palm in Indonesia” is in plan to celebrate a hundred years of the existence of oil palm in Indonesia that takes place in Tiara Convention Hall, Medan-North Sumatera. This celebration is aimed to counter the negative campaign against the oil palm plantation corporation.
Oil palm becoming a business purposes, as a strategic commodity in Indonesia, was first acquainted by colonial Dutch in 1911, developed in two North Sumatera’s areas namely Pulo Raja and Tanah Itam. As time goes on, the oil palm plantation has been largely increasing achieving more than 7 million hectares at the present.
More than 90 percent, today, of the world’s oil palm are mostly exported from Malaysia and Indonesia. Indonesia has been on its highly economic development by export activities, between in 2003 and 2010, which two fold increases occured from 7.8 million tons (2003/2004) to 18 million tons (2010/2011). It is assumed to the increase every year (see the table below).

The use of oil palm and palm seed, nearly 70 percent, is being used to produce the food materials, 24 percent is to produce some other daily secondary needs including soap, cosmetics, candle, etc.and 5 percent is used to energy supply (Agentur für Erneuerbare Energie 2010: 20).
Mostly European Union countries are now using 45 percent of oil palm for industrial purposes, the number comparatibly is much higher than countries outside EU. Unlike EU countries, China and some South-Eastern Asian Countries are only using 35 percent for their industrial purposes. On the other hand, the use of oil palm for food materials is mostly met in India and Midle Eastern countries (USDA 2010a: Tabelle 24-28).
More than half of the world’s import activities are brought in to countries like China, India, European Union, and Pakistan. Cina and India import the oil palm at 6.3 million tons and 7.6 million tons each (2010/2011), the number trancends to what 27 EU countries’ which only import 5.4 million tons. That number seems to have been increasing every year.



2. The Impact of Oil Palm Expansion to the Environment and Social

Degradation of the Tropical Forests
Indonesia constitutes the third largest country in the world producing gas emision which has threatened the earth climate. 85 percent of gas emisions are caused by the increasingly land use proved by on a large number of deforestations and the demolished peat land (Greenpeace 2010a: 1). Beside it, the various plants and animals are gradually perishing since they are not able to survive in a mono-cultural environment met in oil palm plantation.
According to the assesment made by World Bank, there are 70 percent of oil palm plantations developed in the forest areas, approximately 4.2 million hectares, and 25 percent in the peat land (World Bank 2010: 14). There are only one-third of existing corporations using barren soil or lands previously planted with other plants (UNEP 2009: 65). In the recent years, the total use of peat land for plantation purposes is just on increase in to at least 33 percent, in Riau and Sumatera even reach to 80 percent (Edwards/Mulligan/Marelli 2010: 141).
However, Indonesian government may have considered to enlarge the plantation until to 24 million hectares.

Food Competition
Oil palm, if phisically compared to some other plants like rice, soybean, maize, timber and livestock, is breeding very well (World Bank 2010b: 8). The increasingly oil palm use for alternative energy, so called biofuel, needs massively the expansion of plantation by doing land conversion from forest to plantation. The increase of food price, both in national and local levels, is one of many impacts of plantation expansion in order to fulfil the needs of oil palm for industrial purposes, energy and so on. That increase affects poor people not be able to afford their daily foods.

Human Rights Violation
Oil palm industrialization is considered as a new production sector that the very local community does never get advantage from the production process. The local people’s lands are rented with a very low paid, sub-standard. To convince the local or traditional communities is sophisticatedly done by the corporations which those communities are convinced with the given promises to establish educational infrastructures, electricity, new standard house, etc. But the promises are left behind. Many local residents do not understand what they have signed in and even the risk of filling out their signatures on the letter. They can not demand their rights in this regard because many company’s owners have had a good relationships or bargaining position with the political elites and local government.
The subsequent emerging conflict is the highly increases of migrants that affected by the intensively huge expansion of oil palm plantations. According to World Bank that 1000 hectares lands need 350 workers at least (World Bank 2010:28). Papua province today is inhabited with 2.9 million people. So, if the oil palm plantation there developed on 5 million hectares then it needs 1.75 million workers that must be carried out from other islands in Indonesia. It may immediately affect to the worse conflicts which the tensions between migrants and indigeneous people have been existing (EIA/Telepak 2009: 7-8).
There are approximately 3 million people in Indonesia working at the oil palm plantation areas (Teoh 2010:9). Beside working permanently, many of them also being hired as a casual workers who are only employed when the corporations have the work targets for being fulfilled. Many of them have still been facing the very bad circumstances as they are not properly paid, they are not provided with the health insurances, social security, safety work guarrantee, etc. in particular for those woman workers (Mardi 2008: 76-84).

3. The History of Struggle
GAPKI’s celebration of the palm oil sector’s economic success obscures the reality of social conflict that has characterised the plantation industry. Super profits for the companies involved are based on the appropriation of land from small-scale farmers and indigenous peoples, and on the exploitation of a labour force that becomes trapped in a cycle of poverty. Again and again indigenous peoples and small-scale farmers have resisted attempts to grab their land for commercial monocultures, and the coolies brought in to work the plantations have organised against exploitation, for a living wage and for workers rights.
Historically, the workers movement in North Sumatra played a key role in the struggle for independence, and the wave of occupations and reappropriation of land after independence was one of the most inspiring moments of the struggle of the Indonesian people (Stoler 1995). In our alternative event, we will celebrate this tradition and its relevance for the ongoing struggle for land rights, and for environmental and social justice today.

4. Purposes
This conference will be organised as a forum where the general public, media, policy makers, consumers, business can have opportunity to involve:
• to view a complete picture of the production of palm oil
• to raise awareness about the links between oil palm with issues on deforestation, climate change, food sovereignty
• to exchange and debate the alternatives and solutions
• to declare our critical views and ideas against the existence of oil palm corporations
5. Activities
• Series of Workshops and public debates (issues on land issues, forest, climate change, labour, etc.)
• Talkshow and press conference
• Happening art and exhibition
• Film screening

6. Sessions

6.1. Opening Session

Theme:
“Crime and Human Rights Violations which involve the Oil Palm Corporations: the Weakness of framework of law accountability and its effect toward the victims’ rights”

Background
The emergence and the increasingly roles and strongly power of corporation in the public lives currently have influenced the most sides of society. Corporation may be playing its fundamental role in providing the large opportunities to employment sector which absorb many work forces. But on the other hand, corporation can be a serious threat to the fulfilment and protection of human rights. Some various initiatives have been made in order to demand corporations complying the values and standard of human rights according to mechanism of internal accountability and the very market system. Some other initiatives also can be made through creating a regulation which is legally unbinding, however, it persuasively may be used as a stimulation to enhance the production and operation standards better in order to respect the environemnt and surrounding communities better. For instance in the context of oil palm, RSPO (Rountable Sustainable Palm Oil) is a criterion for a respect.

Speakers:
• Human Rights Violation and Its Impact toward the Local Community: Study Case toward the corporation in Oil Palm Plantation – by Abednego Tarigan (Sawit Watch)
• Political Economy of Oil Palm Plantation in the Large Scale – by George Djunus Aditjondro
• The Human Rights Standards and Mechanism for accountability to Right Violations Involving Corporations of Oil Palm Plantation – by Ifdal Kasim (The Chairman of the National Human Rights Commission)
• Mechanism of accountability of Corporations’ Crime at the National Law System – by Prof.Moh. Yamin (Professor in Universitas Sumatera Utara)

6.2. Workshop Series (Paralel Sessions)

6.2.1. Paralel Session I: “Labour on Reality and the Marginalisation in the Oil Palm
Plantation Sector”
This session is highly expected to deliver explanations on the reality of social and economy condition of labour in the oil palm plantation seen from the Economic, Social and Cultural perspectives. This session will also outline the problems met mostly faced by low-paid labourers, unavailable safety and health assurance, and so on.



Speakers :
• Labour on Reality and the Marginalisation in Oil Palm Plantation Sector – Drs.Manginar Situmorang,MSi (Kelompok Pelita Sejahtera)
• The Expansion of Oil Palm Plantation based on perspective of Economic, Social and Cultural Rights – Ms. Indriaswati DS,LLM (ELSAM)
• The Trans-National Struggle Against the Agrofuel Industry – Dr. Oliver Pye (Bonn University, Germany)
• The Implementation of ILO Conventions on the Oil Palm Production Process in Indonesia – Peter Van Rooij (Director of ILO Jakarta, Indonesia)
• The Implementation of Labour’s Rights Protection in the Oil Palm Industry – Muhaimin Iskandar (Work Force Minister of Republic of Indonesia)

6.2.2. Paralel Session II: “The Oil palm Plantation at the Large Scale and Climate Change”

This session will more deeply outline the liason between mono-cultural oil palm plantation and its effect to the climate change. This session also will review both issues in International and National levels, and the related national regulations.

Speakers :
• The Impact of High Explosion of the World’s Oil Palm Market – Longgena Ginting (UEM)
• The Implementation and Memoratorium of Oil Palm Expansion – Elfian (Greenomics)
• The Strategy to Mitigate Climate and the Forest Preservation – Teguh Surya (WALHI Eknas)

6.2.3. Paralel Session III: “Marginalisation Toward Women and Children in the Oil Palm Plantation Area“

This session will outline the situation and reality of women, included woman workers, and children working at the plantation area. Several case studies are going to be presented in the discussion of those issues based on Human Rights perspectives.

Speakers:
• Women and Children in the Oil Palm Industry – Ms. Zubaidah (Wahana Peduli Perempuan Jambi)
• The National Law Frame on the Protection toward Women and Children in the Oil Palm Industry – Ms. Yuniyanti Chuzaifah (The Chairman of National Commission for Women)
• Testimonies: Women and Children as the victims of the exploiting Oil Palm Industry – Inong and Dewi Arios (Peasant and Plantation Labourer)
• The Exploitation Against Women and Children in the Oil Palm Industry – Leli Zaelani (HAPSARI)



6.2.4. Paralel Session IV: “The Rapid Damage of Forests and the Expansion of Oil Palm Plantation”
The high demands toward oil palm have stimulated to the larger expansion of plantation in Indonesia. This expansion not only emerges at forest areas or fead lands, but also are in some areas where the traditional lands, which normally owned by the local people, have been converted for supplying those demands. Natural ecosistems have been devastatingly distorted which marked by many unwittingly natural disasters. The business’ interests oftenly victimise the very local people surrounding the plantation areas.

Speakers:
• Implemantation of national commitment on encountering climate change to assure the forest naturality – Gusti Muhammad Hatta, Minister of Living Environment.
• The Real Portrait of devastated forests and the Expansion of Oil Palm Plantation in North Sumatera – Syahrul Isman Sagala (WALHI SUMUT)
• Reflection against International Campaign toward Oil Palm in Indonesia – Nurhidayati (Greenpeace Indonesia)

6.2.5. Paralel Session V:“Food Crisis as an effect of the Expansion of Oil Palm Plantation”
The expansion has been known about to have negatively affected on the issue of food security. The land conversions for plantation aims tend vulnerably to have influenced the availability of basic foods of the very society. Though the government seemingly can not overcome the rooted problems met in lives of society. The ruling instantions even oftenly manipulate data of the number of lands used for agriculture and the production itself, this is done in order to hide what reality is.

Speakers:
• Food Security Versus the Expansion of Oil Palm Plantation – Ir. Sukirman (The Vice Head of Serdang Bedagai District)
• The Threat of Expansion toward Food Sovereignity – Witoro (Koalisi Beras Indonesia or Rice Coallition Indonesia)
• Peasant Movement on Food Crisis – Henry Saragih (SPI)
• Strategy of Food Security in Indonesia – Ir. Effendi Lubis,MMA (Kepala Badan Ketahanan Pangan Sumatera Utara or the Head of Food Security Board in North Sumatera)

6.2.6. Closing Meeting
This meeting will be intended to deliver the main outputs resulted from all activities of conference. This meeting will also be intended to deliver the joint declaration, public statement and follow up which will be incorporated in our together platform.

Contact Peoples:
• Gindo Nadapdap – Executive Director of Kelompok Pelita, Chairperson of Steering Committee, email: gnadapdap@gmail.com
• Saurlin Siagian – BAKUMSU, Chairperson of Executive Committee, email: Saurlin@gmail.com
• Longgena Ginting-Steering Committee Member, email: Longgenaginting@gmail.com

6.2.7. Book Reviews “The National Conferention of A Century of Crime in Oil Palm Plantation”
Book Reviews reflect the recent plantation activities in which the enactment of regulation on Plantation Law, it can not be interpretated at the present, enacted once during the colonial Dutch. These book reviews are aimed to sharing and reflection toward the real circumstances addressed on the issues of oil palm plantation in order to find what actions should be directed by looking back at those real circumstances and the historical journey of plantation in Indonesia.


Books are going to be reviewed:
• “Menjinakkan Sang Koeli” - Jan Bremen
• “Kapitalisme dan Konfrontasi di Sabuk Perkebunan Sumatera 1870-1979” - Aan Laura Stoler
• “Koeli Kontrak Tempo Doeloe, dengan derita dan kemarahannya” - H. Muhammad Said
• “Sengketa Agraria, pengusaha perkebunan melawan petani” - Karl J. Pelzer
• “Toean Keboen dan Petani, Politik Kolonial dan Perjuangan Agraria” - Karl J. Perlzer

6.2.8. Film Screening

Film Titles:
• Lost in Palm Oil (Friends of the Earth International)
• Lakukan Sekarang Juga (Dewan Nasional Perubahan Iklim)
• BHL (KPS)
• Buruh perempuan di perkebunan (KPS)
• Dampak Kehadiran Perkebunan di Sumatera Utara (KPS)
• Film oleh Sawit Watch
• Rusaknya hutan dan kegagalan sawit rakyat (WABPIS)


8. Budget
All Organisations supporting this Conference will together be initiatively responsible for all the Conference’s expenses, and from the external sources which are not binding. The detail of Conference’s budget may be looked at the attachment page.

9. Organisers
All activities of this conference are organised by an Indonesia NGOs Forum, a forum comprising of NGOs working on the issues around Oil Palm Plantation, namely Lentera, KPS, Bakumsu, Elsam, Bitra, Walhi-SU, Sahdar, Sawit Watch, KOTIB, Elsaka, Hapsari, Kontras, Petra, PBHI, LBH Medan, KSPPM, KPA, SPKS, BPRPI, Sintesa, SPI (La Via Campesina Indonesia), Jala, Gemawan Kalbar, Walhi Kaltim, Setara Jambi, JKMA Aceh, Jikalahari Riau,YPMP, Formatsu, WABPIS, FOKKER LSM Papua.

Board Members:
9.1. Steering Committee (SC)
Coordinator: Gindo Nadapdap (KPS),
Members: Diapari (Lentera); Benget (Bakumsu); Indri Sapta Ningrum (Elsam); Ranto Sibarani (KOTIB); Wahyudi (Bitra); Syahrul Sagala (Walhi SU), Reza (Sahdar); Abednego (Sawit Watch); Bekmi (Elsaka), Leli Zailani (Hapsari); Diah Susilowati (Kontras); Monang Ringo (Petra); Petrus (PBHI); Nuriono (LBH Medan); Dimpos Manalu (KSPPM-KPA); Maruli Sitorus (SPKS); Idham Arsyad (KPA); Asep (Huma); Harun Nuh (BPRPI); Sofian (Sintesa); Hendrik Saragih (La Via Campesina); Wagimin (SPI); Noor Aida (Jala); Lely Khainur (Gemawan – KALBAR); Isal Wardana (WALHI – KALTIM); Rukiah (SETARA Jambi); Budi Arianto (JKMA – Aceh); Susanto (JIKALAHARI – Riau); Sefter Manufandu (Fokker – LSM Papua); Edi Suryanto Purba (YPMP); Maruli Marpaung (Formatsu); M.H Roem (WABPIS); Saurlin Siagian (Ex-Officio)

9.2. Organiser Committee (OC)
Coordinator: Saurlin (Bakumsu – Coordinator ),
Fernando Sihotang (KPS - Vice Coordinator),
Kartika Manurung (KPS – Secretary)
Wahyu Wagiman (Elsam), Lina (Bitra); Dana Tarigan (Jala);
Desk Workshop: Swaldi, Tumpak (Barsdem).
Desk Media and PR: Longgena Ginting
Finance: Victoria dan Fitri
Desk Workshop: Arif Faisal (Sahdar)
Secretariat: Kiki (KPS-Koordinator), Zidane, Juni (Bakumsu), Rhani (Lentera)
Dokumentation: Icen, Yanto, Dayat
10. Secretariat Office
10.1 Kelompok Pelita Sejahtera (KPS)
Jalan Cempaka I No. 20, Kompleks Perumahan Pemda Tk.I Tanjung Sari
Medan 20132, Sumatera Utara
Telepon: +6261 8234300, Email: pokja.sawit@gmail.com
10.2 Wahana Lingkungan Hidup (Walhi) Sumatera Utara
Jalan Sei Serapuh No. 20, Medan Baru
Telepon/Fax : (061) 4579002, Email: walhisu@indosat.net.id
10.3 Contact Persons
• Gindo Nadapdap – Executive Director of Kelompok Pelita Sejahtera and the Coordinator of Steering Committee of A Century
• Saurlin Siagian – Coordinator of Organising Committee
10.4 Bank Account
Account holders : Gindo Nadapdap,SH and Saurlin Siagian
Bank Name : BCA KCP Setiabudi
Account Number : 8205067121
INDONESIAN NGOs FORUM
ALTERNATIVE CONFERENCE AGAINST CELEBRATION OF A CENTURY OF OIL PALM IN INDONESIA