Resources

The World Bank’s Palm Oil Policy

In 2011, the World Bank Group (WBG) adopted a Framework and Strategy for investment in the palm oil sector. The new approach was adopted on the instructions of former World Bank President Robert Zoellick, after a damning audit by International Finance Corporation’s (IFC) semi-independent Compliance Advisory Ombudsman (CAO) had shown that IFC staff were financing the palm oil giant, Wilmar, without due diligence and contrary to the IFC’s Performance Standards. Wilmar is the world’s largest palm oil trader, supplying no less than 45% of globally traded palm oil. The audit, carried out in response to a series of detailed complaints[1] from Forest Peoples Programme and partners, vindicated many of our concerns that Wilmar was expanding its operations in Indonesia in violation of legal requirements, Roundtable on Sustainable Palm Oil (RSPO) standards and IFC norms and procedures. Almost immediately after the audit was triggered, IFC divested itself of its numerous other palm oil investments in Southeast Asia.

Making Palm Oil Accountable?

Globally oil palm plantations continue to expand at a rapid rate. World leader, Indonesia, has raced past Malaysia to become the number one producer. Latest data from the Indonesian watchdog NGO, SawitWatch, suggests that oil palm plantations in Indonesia now cover 11 million hectares, up from 6 million hectares only five years ago. New plantings are spreading to the smaller islands of the archipelago and to the less developed areas of eastern Indonesia. Hopes that a Presidential promise of a 2 year moratorium on forest clearance would slow the crop’s expansion – part of a deal to reduce green house gas emissions - have also evaporated as the government has excepted areas where preliminary permits have already been handed out.

Press Release: New Report Exposes Human Rights Abuses in Wilmar Group Plantation in Jambi, Indonesia. Embargoed for 00:00 GMT, November 21 2011

CLICK HERE TO DOWNLOAD THE PRESS RELEASE

EMBARGOED for 8 am Malaysia 21 November 2011

A new report released today exposes how local Indonesian police (BRIMOB) in Jambi, working with plantation staff, systematically evicted people from three settlements, firing guns to scare them off and then using heavy machinery to destroy their dwellings and bulldoze concrete floors into the nearby creeks. The operations were carried out over a week in mid-August this year and have already sparked an international controversy. Andiko, Executive Director of the Indonesian community rights NGO, HuMa said: 

“Forced evictions at gun point and the destruction of the homes of men, women and children without warning or a court order constitute serious abuses of human rights and are contrary to police norms. The company must now make reparations but individual perpetrators should also be investigated and punished in accordance with the law.”