ADB and the Australian Government propose high-risk road project that will pierce the heart of Borneo

The proposed project – a partnership of the Asian Development Bank and the Australian Government – at present does not require consultation with indigenous communities and lacks safeguards to ensure respect for community rights and protection of the environment.

A new report released today, finds that the proposed ‘National Roads Development Project’ in Indonesian Borneo is likely to result in land-grabbing from local peoples, palm oil expansion, and deforestation on indigenous land unless appropriate safeguards are properly applied.

 

“If these roads are built before [Indigenous peoples’] rights are recognised, communities risk losing everything; their land, their forest and their rivers,” said Martha Doq, Dayak Bahau woman human rights defender.

 

In September 2022, the Asian Development Bank (ADB) will carry out a scoping study to assess some of the human rights and environmental impacts of the National Roads Development Project (NRDP).

A policy paper, released today, warns that ADB’s existing safeguarding policies are insufficient, and recommends that the scoping study must include the views of indigenous peoples who will be impacted by the project.

Read the full policy paper here in English and in Bahasa Indonesia. 

The UN has also called on Indonesia’s government to “secure the possession and ownership rights of local communities before proceeding further” with Kalimantan development.

 

“There has been little communication about the Trans [Kalimantan] road, and this is problematic,” said a Pa’Umung village representative, whose customary land falls within the project area.

 

Whilst these roads will enable community members to access new economic markets and critical health services, they will also enable transmigrants and extractive companies to access an area that is currently free from industrial natural resource extraction.

 

“In general, the Mahakam Ulu indigenous people are very enthusiastic about the construction of the first road in Mahakam Ulu, which will facilitate travel both in and outside of the District,” said Martha Doq.

 

 

“However, the community is not aware that the construction of this road is primarily to support extractive companies,” she said.

 

A study carried out by local NGOs demonstrates that the project will have “significant adverse impacts that are irreversible, diverse, or unprecedented” on Dayak indigenous peoples, including land-grabbing, palm oil expansion, deforestation and contamination of indigenous lands.

 

“Those kind of concessions [granted within the NRDP project] would be very dangerous for the people here, because our agricultural lands are very dependent on natural streams,” said a Lundayeh community member interviewed as part of FPP’s study.

 

 Rice farming is an integral part of the Lundayeh community’s livelihood and is central to their culture.

 

“Any kind of concession upriver would kill off our agriculture.”

 

Under ADB’s own Safeguards Policy Statement, the project has been classified as Category B for Indigenous Peoples and Involuntary resettlement. This allows for lower levels of due diligence in ADB’s Safeguard Requirements, which increases the likelihood of displacement and expropriation. This classification is despite one of ADB’s initial analysis on the NRDP in 2020 acknowledging that:

 

“Impacts on a high percentage of ethnic minorities, including the Dayak and Banjar peoples in North Kalimantan are expected…and [will likely] result in their economic displacement.”

 

This paper therefore recommends that the project should be reclassified as Category A for Indigenous Peoples, which would require an Indigenous Peoples plan to be drawn up to assess impacts on communities.

Dayak communities interviewed in this analysis are demanding that their rights are respected and safeguarded first in local and national legislation, before any developments on their ancestral territories take place.

“Ultimately, road access will make it easier for investors to enter Mahakam Ulu and allow "outsiders" to have more control over their natural resources. This is why we are asking for our peoples’ rights to be protected before the project goes ahead,” said Martha Doq.

The flaws of the ADB’s approach to safeguarding are well documented. The Bank’s previous financial support for infrastructure expansion in Borneo led to vast swathes of Dayak ancestral lands be taken over for industrial-scale palm oil plantations without community consent. It is vital, therefore, that ADB’s safeguarding policy is updated and improved upon for this National Roads Development Project to ensure that Dayak peoples’ rights, livelihoods and lands are respected.

Context and quotes:

• The policy paper is intended for ADB’s Board of Directors, who are responsible for the approval of the proposed National Roads Development Project Kalimantan (52347-001), and the Government of Australia, who are financing “Indonesia: Due Diligence for Roads Projects in Kalimantan and Capacity development (Subproject 6)” (52152-004).
• Palm oil expansion across Borneo’s Borderlands (especially Kalimantan) means largescale industry is set to be the principal beneficiary of ADB’s project, where numerous undeveloped concessions straddle the proposed road.
• The proposed project is a threat to Indonesia’s key climate and deforestation goals as proposed roads traverse the buffer zone of the ecologically sensitive Kayan Mentarang National Park, Borneo’s largest protected area.
• In 2022, an independent evaluation found that “ADB’s approach has been to…narrow indigenous peoples’ issues to involuntary resettlement aspects” and “[to] avoid implementing Indigenous Peoples requirements whenever possible.” This is exemplified by the lack of an Indigenous Peoples expert in ADB’s project analysis, which is a requirement of the subproject's terms of reference. This has led to a lack of data and involvement of Indigenous peoples and of adequate grievance mechanisms.
• All of the forest land straddling either side of ADB’s proposed road is classified as APL (“areas for other purposes”, under the jurisdiction of the National Lands Agency), and can effectively be cleared for oil palm or pulp and paper plantations.
• ADB has classified the project as OP1, which means it considers that it would “address remaining poverty and reduce inequalities” faced by affected indigenous communities. Instead, the report finds that it is likely to exacerbate these issues.
• The lack of government recognition of indigenous peoples’ lands means that Dayak communities in the proposed project area are extremely vulnerable to land expropriation. Under Indonesian law, the government can and does recognise indigenous peoples’ lands, but in the proposed project area no land titles are yet to be awarded to communities.

  • “Many policies made from the central government in Java are oblivious to the situation in Kalimantan’s edges, thus whatever rules and policies they’ve cast, haven’t produced any benefits here,” said the Customary Head of Pekebaun village, North Kalimantan, an area which will be directly impacted by the project.