UpdateFPP and 18 other NGOs, including local organisations in Indonesia, have been involved in a long-running process to get redress for the IFC’s persistent violations of its social and environmental policies in the palm oil sector in Indonesia. For over five years IFC has been providing financial support to the company Wilmar Trading / Wilmar International, one of the world’s largest palm oil dealers, directly and through various subsidiaries. In August 2007, FPP with other concerned NGOs and local organisations in Indonesia filed a complaint with the IFC Compliance Advisory Ombudsman (CAO) about this financing, alleging serious social and environmental problems in Wilmar’s operations, as well as violations of IFC’s own standards and procedures in making these credits and loans.
A new report by the Forest Peoples Programme launched today demands greater accountability from HSBC, the biggest bank funding the palm oil sector in South East Asia. The fast-expanding palm oil sector is known to be a major driver of deforestation and the take-over of indigenous peoples' lands without their consent. Conflicts between indigenous peoples and palm oil companies are widespread in Malaysia and Indonesia.
A synthesis of training materials devised for communities and companies, and also local government, about how successful procedures can be carried out in line with the principle of FPIC - free, prior and informed consent - to enable indigenous peoples, local communities and other stakeholders to express their views in negotiations and for these views and wishes to be included in the RSPO's decision-making processes.
In July 2007, Forest Peoples Programme with 18 other NGOs including local groups in Indonesia filed a complaint with the International Finance Corporation's (IFC) Compliance Advisory Ombudsman (CAO) about the IFC's funding of the palm oil producing and trading company, Wilmar. The complaint raised concerns about the impacts of Wilmar's operations on local communities, company violations of Indonesian laws and environmental policies, and IFC staff's violations of IFC policies and procedures. We also complained that the IFC, as a member of the Roundtable on Sustainable Palm Oil (RSPO), was contravening RSPO rules by asserting on the IFC website that Wilmar's operations were compliant with the RSPO's standard.