The investigation is one of the most damning ever issued by the internal watchdog and concludes that the Bank’s private sector lending arm, the International Finance Corporation:
What are the prospects for securing the land rights of indigenous peoples, local communities, and women in the foreseeable future?
Significantly, the report of the United Nations Secretary-General’s High Level Panel of Eminent Persons on the Post-2015 Development Agenda, under Goal 1 to “End Poverty”, sets a target to “Increase by x% the share of women and men, communities, and businesses with secure rights to land, property, and other assets”.
This report summarises the various phases of the mediation process between PT Asiatic Persada and the Batin Sembilan communities in Jambi, Sumatra, including the initial phase of mediation by SETARA and the second phase of mediation facilitated by the Joint Mediation Team of the International Finance Corporation Compliance Advisor/Ombudsman (IFC CAO) and the Jambi province government.
The International Finance Corporation Compliance Advisor/Ombudsman (IFC CAO) has formally announced its withdrawal from the case of PT Asiatic Persada, following the sale of the concession by Wilmar in April 2013, and the new management’s decision to continue mediation through a government team instead. This is despite the fact that the affected Batin Sembilan communities and complaint signatory NGOs have repeatedly called on the IFC CAO to continue its role as mediator and to encourage the company to pursue this avenue towards conflict resolution.
Growing global demand for palm oil is fuelling the large-scale expansion of oil palm plantations across Southeast Asia and Africa. Concerns about the environmental and social impacts of the conversion of vast tracts of land to monocrop plantations led in 2004 to the establishment of the Roundtable on Sustainable Palm Oil (RSPO), which encourages oil palm expansion in ways that do not destroy high conservation values or cause social conflict. Numerous international agencies have also called for reforms of national frameworks to secure communities’ rights and to develop sound land governance.
Nurman Nuri, Leader of the Suku Anak Dalam group 113 of Pinang Tinggi in the Indonesian province of Jambi, stated in a press conference held on 3 October 2013 at the office of Indonesian NGO CAPPA: "We demand that the Governor of Jambi Province immediately revokes the HGU (Business Use Permit) of PT Asiatic Persada, as since its establishment in the 1980s no benefits at all have been derived by the indigenous Suku Anak Dalam living in this territory, only misery."
Oil palm giant and Roundtable on Sustainable Palm Oil (RSPO) member, Wilmar, has agreed the sale of its oil palm concession PT Asiatic Persada, without prior consultation or respect for the Free, Prior and Informed Consent of indigenous Batin Sembilan communities already engaged in a land conflict mediation process.
This complaint is directed to Wilmar Group regarding its sale agreement of PT Asiatic Persada (Jambi, Indonesia) to Prima Fortune International Ltd and PT Agro Mandiri Semesta.
This briefing, launched on the occasion of the 10th Roundtable on Sustainable Palm Oil (RT10), draws together the key findings of fourteen studies on FPIC in RSPO member/certified plantations based on the RSPO Principles & Criteria (P&C) and related Indicators and Guidance, and makes recommendations for reforms in the way palm oil companies honour the principle of FPIC and respect customary rights to land.
The right to Free, Prior and Informed Consent (FPIC) in the Round Table on Sustainable Palm Oil (RSPO) Principles and Criteria establishes how equitable agreements between local communities and companies (and governments) can be developed in ways that ensure the legal and customary rights of indigenous peoples and other local rights-holders are respected.
The controversial palm oil producing company, Sinar Mas, was in the news again as a long standing land dispute on one of its estate escalated into a police shooting in which 5 local community members were seriously injured. The conflict occurred in the province of Jambi on the island of Sumatra when unarmed local community members were attacked without warning by members of one of the mobile police brigades called in by the Sinar Mas-owned subsidiary, PT Kresna Duta Agroindo. The Sinar Mas group is Indonesia's largest palm oil conglomerate and has been blacklisted by some major US and European palm oil processors, owing to reports of repeated violations of social and environmental standards.
Press alerts from Perkumpulan Hijau, CAPPA, and Yayasan SETARA: