Indonesia: Indigenous community threatened with criminalisation by a Fangiono-family linked oil palm company
North Kalimantan is the most recent province to be carved out of the Indonesian part of the island of Borneo. The least populous province in Indonesia is home to a diverse mix of ethnic groups, including indigenous Dayak Lundayeh, Kenyah, Punan, Tidung and Agabag. Roughly 69% of the Province’s total area is classified as forest, making it a prime target for investors. In the Provincial Government’s 2020 ‘master plan’, oil palm plantation development is highlighted as a “principal component” for the Province’s economy. [1]
This has meant that despite the province’s relative isolation, extractive industries already have a heavy presence in the area. Surya Dumai Group (SDG) made national headlines in 2007 when an investigation by Indonesia’s Corruption Eradication Commission (Komisi Pemberantasan Korupsi) revealed that company representatives paid bribes to provincial government officials to obtain permits for 11 of SDG’s subsidiaries to operate on 147,000 hectares of land across Nunukan district – one of five districts located in North Kalimantan. [2]
One of the beneficiaries of the bribery scandal was the oil palm company PT Karangjuang Hijau Lestari (PT KHL) whose concession overlays the ancestral lands of five Dayak Agabag communities in Sebuku sub-district (Nunukan) – the hamlets of Tetaban, Bebanas, Melasa Baru, Lulu and Sujau. PT KHL is majority owned by Wirastuty Fangiono. She is also one of the beneficial owners of Roundtable of Sustainable Palm Oil member, First Resources. [3]
“The companies believe that there is no community in the area. There has never been any form of socialisation. Instead, we have a palm oil army who patrol their plantation. They don’t want villagers around their company operations even though this is our land.” - Dayak Agabag community member
To gain access to the community’s lands, company officials coerced village representatives into signing over large parts of their ancestral lands to PT KHL. None of the representatives were made aware that they would be signing away their territories in perpetuity. The long-standing land conflict heated up on 7th December 2020 when the District Police (Polres Nunukan), acting at the request of PT KHL, sent a letter to community representatives accusing five them of illegally harvesting oil palm fruits for PT KHL’s concession
“Our land has been confiscated by investors, and our people are criminalised! The company is supposed to help the community, instead it labels us thieves. Should a profit-orientated company fill up its wallets and get fat while the community remains thin? Is this what the law mandates?” - Theodorus, Bebenas Hamlet
“We are asking the Nunukan District Police to release our people. They are innocent. They keep giving us promises, but there is no action.” - Dayak Agabag community member
In response, the five communities held a customary meeting in which it was decided that a letter should be sent to the District Governor and the District Police requesting mediation. A meeting was held on 22nd December to mediate between the five communities and PT KHL which resulted in the company acknowledging that there had in fact been no wrongdoing. PT KHL, however, did not retract their police report or their accusations. This resulted in a second letter from the District Police to the five communities on 13th January 2021 which detailed the names of the community members suspected of illegal harvesting.
“The company has committed the crime. Our village existed before the invention of the Indonesian State, our customs are far older than this nation and this company.” - Dayak Agabag community member
On 11th February 2021, representatives of the five communities approached the local legislature to request mediation and PT KHL to drop the charges brought against their peoples. PT KHL failed to attend the hearing instead requesting the meeting be rescheduled.
“What are we supposed to eat? How are we supposed to live? Our land is annexed. They promise us compensation. Instead, we get oil palm. How can we live without our land? How can we be charged with stealing from our own home?” - Theodorus, Bebenas Hamlet
This has incensed community members who are tired of the company’s lies and false promises. On 13th February they encouraged the District Police to investigate PT KHL’s failed Corporate Social Responsibility commitments that have never been realised and encouraged the company to withdraw the report brought against them. The chairman of the District Legislature, Andi Krislina, appeared to agree with the community and concluded: “we will ask PT KHL to withdraw the charges and bring the case to the Ministry of Environment and Forestry”. [4]
Intimidation and criminalisation of indigenous peoples has been on the increase since the Covid-19 pandemic. [5] Policies need to be put in place to stop this worrying trend and the rollback of indigenous rights across the archipelago.
“The community does need development, but this means first and foremost, PT KHL respects the rights of indigenous peoples.” - Pak Tahunan, Bebenas Hamlet
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[1] Breaking the Heart of Borneo, Forest Peoples Programme (2020) - https://www.forestpeoples.org/en/breaking-heart-of-borneo
[2] Identification and Quantification of the Proceeds of Bribery: A joint OECD-StAR analysis. 2012, OECD Publishing. Available at: https://www.oecd.org/corruption/anti-bribery/50057547.pdf
[3] www.forestpeoples.org/en/indonesia-investigation-oil-palm-shadow-companies
[4] https://suarakalteng.com/perwakilan-5-desa-sambangi-kantor-dprd-nunukan-kaltara-ada-apa/
[5] Rollback Report: Indonesia, Forest Peoples Programme (2021) - https://www.forestpeoples.org/en/rolling-back-safeguards/indonesia
Overview
- Resource Type:
- Press Releases
- Publication date:
- 19 February 2021
- Region:
- Indonesia
- Programmes:
- Supply Chains and Trade