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    Yogyakarta, June 25, 2010 / Informal Interview with Marcus Colchester

    I met Marcus by chance at Ibu Heru's Home stay in Jogja where I stayed while taking languageclasses at Wisma Bahasa. We had an informal, brief discussion oer breakfast about hisorganisation, !orest "eo#les "rogramme $!""%, of which he is the director, and the field work

    that I was #re#aring to undertake in West &alimantan.

    Q: What is the main focus of your organisation's work in Indonesia?

    Working with such organisations as Sawit Watch, HuMa, the World Agroforestry Centre andothers, we draw attention to the impact and implications of the oil palm industry on ruralcommunities and indigenous peoples. Our 2! pu"lication of Promised Land e#amined theprocesses "y which land was ac$uired for oil palm plantations, and looked at how smallholderswere incorporated in the sector. We also outlined the main principles of %S&O and identified itsstrengths and weaknesses as a regulatory mechanism for the oil palm industry.

    In July, ((), !"" and a coalition of *+ Indonesian ciil society and indigenous organisationsfiled a detailed com#laint against the World Bank's #riate sector arm the International !inance-or#oration $I!-% for oerriding its own social and enironmental standards, and des#itewarnings of /0s, went ahead and awarded major loans to Wilmar #alm oil trading grou#. 1he-om#liance 2disory 0mbudsman $-20% of the I!- res#onded by launching an internal auditand #roduced a critical re#ort that demonstrated how the I!- failed to assess the su##ly chains orlook into the damaging im#acts of Wilmar's subsidiary #lantations that were taking oercommunity lands in Borneo and 3umatra. 1he World Bank announced in 2ugust ((+, that theI!- would not a##roe any new #alm oil loans until the deficiencies listed in the -20 re#orthad been addressed. In addition, as a result of the scathing re#ort against Wilmar and theenironmental issues raised by grou#s like /reen#eace and others, 4nileer, as a major buyer of

    #alm oil, has since canceled its contract with Wilmar.

    We all saw this as a major ictory and hae since this time been lobbying the World Bank toe5tend the I!- social and enironmental standards to all WB funding and not just to the I!-lending #ractices. 1his battle is still being fought, thought there is some headway being made inthis area.

    Q: How effective is the RSPO? What do you see as some of the chaenges in certifying !am oi

    '

    ro!ucing "ealth an! overty in In!onesia#s $ew %ural &conomies

    3ungei 6ekan7&uala Buayan, &ecematan Meliau, &alimantan Barat"reliminary !ield otes, July 8 2ugust +, (*(

    Clau!e 'ortin

    $Masters -andidate%

    International 6eelo#ment 3tudies,3aint Mary9s 4niersity,

    Halifa5, 3

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    as sustaina"e?

    %S&O is a starting point for setting industry standards that address the en(ironmental and socialimpacts of oil palm plantations and their current pro)ected e#pansion. Certainly, (oluntarymem"ership presents a limitation, "ut we ha(e already seen the influence of negati(e pu"licpressure as in the case of *nile(er and Wilmar which can help "ring a"out changes in industrypractices in the long run. +here are, of course, a num"er of challenges for smallholders to o"taincertification for their plots, not the least of which is the costs which can make it prohi"iti(e. We

    ha(e listed some of the pro"lems for inclusion of smallholders in Promised Land, as well asother pro"lems associated with %S&O. t is safe to say that much more needs to "e doneregarding %S&O if palm oil estates are to genuinely contri"ute to community de(elopment ratherthan "ecoming po(erty traps.

    Haing interiewed a number of com#anies inoled in the #roduction of -rude "alm 0il$-"0%, the issue of certifying oil that has been deried solely from a sustainable source and inkee#ing with :3"0 standards is not as straight8forward as it may seem. 1he oil is generallycombined from a ariety of sources, and there is currently little infrastructure in #lace to allowfor the storage of differentiated -"0 $i.e. :3"0 and non8:3"0%. 2lso, as is the case ininternational commodity markets in a globali;ed economy, a tanker of -"0 may leae Indonesia

    bound for 2frica, but can be traded and sold multi#le times before actually being redirected to afinal destination such as -hina for e5am#le. 1he nature of these trading #ractices makes itdifficult to track the source and destination of -"0, as does the host of subsidiary com#anies thatare inoled with the buying, trading, and #rocessing of -"0 destined to be included in a wideariety of consumable goods.

    Q: #his week the Indonesian government announced that it woud esta"ish its own criteria for

    sustaina"e !am oi deveo!ment$ What is your take on this?

    "resently, Indonesian state oil #alm #lantations like "1" *< are not members of the :3"0.4nder #ressure from the consortium of oil #alm #roducers in Indonesia, the goernment has

    indicated that the oluntary :3"0 standard is set too high, and that it will deelo# a nationalI3"0 $Indonesian 3ustainable "alm 0il% standards that would a##ly to its state #lantations.1here goernment has yet to make these standards #ublic. 1he first =uestions is, how will theI3"0 differ from the :3"0> More im#ortantly, will I3"0 sim#ly #romote a ?business as usual@a##roach, or will there be tangible enironmental and social gains made as a result of thesenational criteria> !or the moment, we don't hae answers to these =uestions.

    Q: What is the FPP's most current area of research in Indonesia, apart from what you havealready mentioned?

    Ha(ing e#plored the issue of land in great detail in Promised Land, we are now looking at

    gaining a "etter understanding of how li(elihoods are "eing affected "y the oil palm industry.-y this, mean, who is working in the sector and under what terms, and who is "eing e#cludedfrom it and the alternati(es a(aila"le for indigenous people and rural communities. +he oilpalm sector is e#pected to e#pand significantly o(er the ne#t ' years, and it is essential that weunderstand how and to what e#tent agrarian landscapes and li(elihoods are going to change as aresult of this e#pansion.

    Arrival in Kuala Buayan (late afternoon) Friday, July 2nd

    : Observation

    2

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    Met the epala /esa 0&ak Seysukardi1, epala /usun 0&ak Mahrani, Adam1, among others andregistered with the kantor "y filling in our names in the registry. aleh and waited for &akSutanto to arri(e to "ring us "ack to his place. He li(es in Cempaka 0%+ 341 which is a"out a'5'4 minute motor"ike ride upri(er along the apuas %i(er. According to the data charts on

    the wall of the office, uala -uayan has '67 kk 0pop. 4!4! 2896 male : 27!2 female1 li(ing

    in '' %+s. Sensus &enduduk 2' was recently completed 0See Appendi# A1.

    /aleh and I rode on se#arate motorbikes along a dirt road that was badly eroded in some s#otsand makeshift boards had been #laced to allow #assage where rain had washed out #arts of theroad. 1he small bridges were in #articularly bad sha#e, so we ended u# walking oer while thebikes went on ahead. 0n a number of occasions we had to sto# and start because of our heayloads and the bad road. We rode through arious settlements along the way with houses madeeither of cement or wood in arious conditions. 2 good number were dela#itated, rundown, andwithout #aint, while others had #aint and were in better sha#e. 1he oerall im#ression was oneof #oerty inters#ersed with #ockets of wealth. 3atellite dishes of arying si;es dotted thelandsca#e, and on the waterfront there was much actiityAbathing, washing, swimming, etc."eo#le were smiling as we rode by and there was a general feeling of e5citement and curiosity.

    ak (utanto an! his family&ak Sutanto has a position with the uala -uayan office 0/esa -&/ : -adan &ermusawaran

    /esastarted 29, for 4 years1, and he is the head of %+3 4 along with &ak Ha)i %uslan who is

    in his !s or 7s. He owns a concrete house that has a large sitting room in the front, a familyarea off the kitchen at the "ack, and two "edrooms. aleh and are staying in one room togetherwhile the family sleep in the other room. +hey ha(e electricity e(eryday from !pm to ! am,e#cept on Sunday where it is a(aila"le all day, and their a(erage "ill is %p !. per monthwhich &ak pays in person at the central kantor where diesel generators 0S&&O fuel1 pro(idepower for the local area. %ain and wind causes regular outages. +he family has a refrigerator,+;, an electric fan, and outlets throughout house e#cept in the front sitting room. +he floor istiled and clean, and we eat sitting on the floor, though not e(eryone eats at the same time

    together. Cooking is done using minyat tanah 0fuel from the ground, not "iodiesel1. +he familydoesnft drink the water from the ri(er< they collect rain water and store it in the fridge. %arelydoes it happen where they ha(e to resort to using water from the apuas %i(er, "ecause they

    ha(e = reser(oirs 0satu ku"ik ' litre1 and the rain comes regularly, e(en in the dry season.

    +he family also owns two motor "ikes 0in a(erage condition family mem"ers, neigh"ours

    "orrow throughout the day1 and a regular 2 wheeler childrenfs "ike. +hey ha(e '8 cats, !"irds 0one that says Selamat &agi>1, and a num"er of chickens, roosters, and chicks which are notallowed in the house, though this re$uires some chasing a"out periodically to get them out of thehouse. +hey ha(e access to two latrines 0with roof1 and "athing decks on the apuas, "oth ofwhich are in pretty good shape.

    "ak 3utanto and his wife Ibu 2riani hae two children of their ownA a daughter 1ania $* yrsold% who is liing with relaties in 3intang $C hours away by motorbike% while attending a#riate school, and a son Ikhsan $*( yrs old% who is =uite liely, bright, and friendly though =uitesmall for his age. 1hey also hae an ado#ted girl $anak aso% liing with them, 6ewi $*< yrs old "assed away>%. 6ewi hel#s with the kitchen work, is

    =

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    friendly, and wants to learn some Dnglish while I am staying here. We hae already startedsome instruction using has my Eonely "lanet book. 6ewi, Ikhsan, and I #lay ariations on amarble game that inoles colours, numbers, and guessing.

    +heir neigh"our on the one side is "u Arianifs eldest sister, "u Wardia, who li(es with herhus"and 0?ayadi1 and two children 0daughter @ea, '9 yrs old, and a son Wahyudin, '4 yrs old1%. 2ndi lies in Ma#ai$ hours away ia atakatak% and owns ka#lings. "aling besar masalah koru#si, sekarang dibawa. 3BR tidak bagus. He earns on aerage eery month :# * juta from his 1B3. He is notsure how much he #ays in ta5es, but it is not much.

    He asked me what can he do a"out his son ?ohn who doesnft want to work and doesnft wantto go to schoolK suggested cutting his funding.

    #anggau -uesday, July %. / ednesday, July %0

    1he &e#ala 6usun in &uala Buayan, "ak Mahrani, informed me that I could find an economic

    #rofile of the families in &uala Buayan at the &antor B"3 $Badan "usat 3tatistik% in 3anggau.He #roided me with the name "ak Jukaini $office manager for statistical data% along with histele#hone number. I left -em#aka ia s#eedboat to 3anggau $:#.

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    between Mas Ben; and "ak Jukaini regarding the cost of the books. I felt that I was beingswindled, so informed "ak Jukaini that I would need to hae a consultasi with Mas "ujo beforedeciding to buy the books.L

    "ak Jukaini informed me that #lantation economic data could be aailable at &antor 6isbun$6inas "erkebunan%. He added that the /:"& $3ekundus% has not been actie for oer Fmonths and that it has been re#laced by the !"B of which he was the coordinator. When Iin=uired about -ion 2leksander $his tel Q came u# as inactie%, he was unable to hel#, nor did he

    know of an 3"&3 office in 3anggau.

    3antor 9inas erke*unan 9is*un-

    Mas -en and arri(ed at the kantor a"out = minutes "efore closing 0=pm1, so our meeting wsa

    short. met with &ak Gko who let me make a copy of a document Statistik &erke"upaten

    Sanggau Menurut ecamatan +ahun 2!529 088 pages copy was made in town with &ak

    Gko accompanying us with the original document1. +he document has agricultural productiondata for the '4 ecamatan of Sanggau, of which Meliau is 3!. 0See Appendi# 55 Summary ofdata1. &ak Gko suggested (isit the antor -A&&G/A for other economic data and for maps ofthe area. He pro(ided me with the name of &ak Awal *dinur. Mas -en returned me to myhotel and we parted ways. would continue my (isits on Wednesday.

    3antor A&9A

    I met "ak :oni !au;an, sekretari of the kantor. He was able to #roide me for free with a softco#y of the ((+ &abu#aten 3anggau 6alam 2ngka $recall :#. *(.((( cost from B"3SS% and afree hard co#y of the ((+ &ecamatan Meliau 6alam 2ngka. He suggested I isit the &antor"erkebunan for ma#s and #roided me with the name of "ak. &acuk. 1he sekretri droe me tothe kantor in his brand new 34T which took about * minute. While driing he told me that heworked #reiously with the World Bank office in Jakarta for a number of years. Meeting lastedabout

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    shows -H/ holding a H* for ma)ority of uala -uayan area, yet much land is held underpri(adi ownership. He suggested check with the epala /usun of uala -uayan for a detailedlisting of land ownership in %+34. He also suggested go to the kantor *& 0in *saha&erke"unan1 for details on kelapa sawit licensing and ownership, and to contact &ak @asito inSanggau Jdid not pursue this lead at this timeL.

    9emogra+hic 9ata for 3uala uayan / (ource. 3ecamatan Meliau 9alam Angka 200=-

    "ublisherA B"3 &abu#aten 3anggau. &atalog B"3A *C(

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    enough for their fruit $kurang #arawatang%.

    Cem+aka 'ri!ay, July 1>, 2010

    %umah ak 6anto. 8*servations

    I had a short discussion with "ak 1ugiyo regarding the trael arrangements for Dntikong on JulyG that would inole three #eo#le $2dam, 2nnie, and I% and include the boat tri# across from-em#aka to "1" *

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    Kuala Buayan / +- 0 #aturday, July %, 23%3 / Journalist "etani / #ource: KB$4

    $Interiew was recorded *F see &B-G wa file%

    ackgroun! Information

    He was "orn in -ogor on August =rd

    , '972 and has 9 si"lings who all still li(e in -ogor. His

    father worked in a tea factory and has since passed away. n 2, informant mo(ed to ?akartato study accounting at the *ni(ersity S+G 0=.4 yr program1. At the time, he did not work in?akarta, and he was li(ing in a rented house. n 26, he finished his program and mo(ed to&ontianak where he help three different )o"sD '1 financial consultant for fishing:shrimp industry%P the &&"2takes a #ercentage to serice debt and also makes deductions to the total, then transfers thebalance to the &46P the latter makes a number of deductions and #ays the farmer his balanceonce a month. 1he farmers don't use outside workers to harest #lasma as they work in a royongof about C farmers to #roide the labour needed. When family members arrie from the outside,they work as #art of the royong on #articular #lots of land.

    6$ 1? Inti "orker an! 3( ka+ling owner

    1he worker is 6ayak from 6ekan "utih and he works as a harester on inti land from Monday to3aturday. He works with a #artner and their daily goal is to harest G tons 7 day with their salaryset at :# F+ 7 kg. 1heir record so far has been to harest *) tons in one dayS His aeragemonthly wage works out to be :#. F.+ juta. 1hree years ago, he #urchased a ka#ling $#riate%about * minutes from the illage by motorcycle, and he has begun haresting about

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    $not mounted on the wall%, so I had to hold onto it while writing to #reent it from falling. 1hesestudents re=uired more direct classroom management interentions, for a host of reasons, not theleast of which is the fact that this class was outside of their regular school hours. 2 number of#arents stood outside the door and obsered the lesson. 2s in the first teaching stint in themorning, I was asked to sign eeryone's notebooks.

    2fter class, we went back to 3eringringo's home on the BH6 com#le5. 1here was a ery strongsmell coming from the #lant which runs C hours a day, ) days a week. 3eringoringo #ointed

    our how the management $mandors etc.% were #roided much better housing at the to# of therise, while the general workers had more meager accommodations, though the com#any did #ayfor the electricity and well water. 1he general staff housing was still much better than theBH6( that was more dela#itated and didn9t hae running water.

    hakti Jaya 'ri!ay, July 2?, 2010

    8*servations

    I was intending to isit the &46 office in the town, but I ended u# getting there too late and theoffice was already closed. It was a small, rundown building with broken down furniture in thefront area, and it was surrounded by an old housing com#le5 that was #artially abandoned and

    #artially occu#ied. I met a &3 worker who informed me that the &46 usually has one or two#eo#le in the office from Monday to !riday, and they are closed on the weekends.

    Interview with $66 6ransmigrant / (ource. 3C22

    2s I was walking toward the illage centre, a woman was standing in her doorway with somechildren and she inited me in for tea. 3he was originally from 11 $Dast 1imor%, had moedhere *) years ago with

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    2lso in the room was her grandson, Mus, who was * years old. He took #art in the interiew aswell. ear the end of our interiew with the informant and her grand8son, a neighbour $&B-

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    inoled with agrarian issues in Indonesia. 6ianto was one of the original founders of &"2$&onsorsium "embaruan 2graria -onsortium for 2grarian :eform% back in *++C, and 2:-was first established as a research section of &"2 until it eentually became an inde#endentresearch body in ((. It receies funding from the !ord !oundation, as well as from the6ayakology Institute, and a !rench -atholic /0 Frres des hommes! 1he office in Bandung isrun by Hilma 3aftri and has two other #rinci#al researchers a#art from 6iantoA Rudi Bachriadiand Jiwo $last name>%. 1he team is currently #lanning a research field #roject for the fall tostudy the e5tent at which the oil #alm sector is transforming rural landsca#es and lielihoods.

    Q: 1an you give me an overview of the main !easant*farmer grou!s o!erating in Indonesia?

    -urrently, there are main grou#s claiming to re#resent #easant farmersA 3"I, 2"I, 2/:2,31, which are all national organisations, and "etani Mandiri, which is a self8sufficient andinde#endent organisation. 1here are numerous other localised #easant unions such as the 3""$"asundan "easant 4nion% in West Jaa and the 31aB $Bengkulu "easant 4nion% in 3umatra.1he &"2 does not claim to be an organisation strictly re#resenting #easant farmers and seeks tobuild a broad8based organisation that also includes local and international /0s. In *++F, the3"I decided that the main actors to be #rioriti;ed were #easants, and as a result non8#easantorganisations $/0s% were e5cluded from membershi# in light of the history of some /0s

    haing been co8o#ted by e5ternal funding sources in the #ast. 1he intent here was to #rotectfarmer grou#s in Indonesia from outside influences. In ((), the national organisations ruledthat only single membershi#s were to be allowed and that membershi# would only a##ly toindiiduals and not entire organisations as was the case in the #ast. 1his decision reflecteddiisions amongst the arious grou#s and inariably fragmented the actiists working onagrarian reform issues. 1here remains an undercurrent of tension amongst arious actiistsgrou#s and #easant7farmer organisation, des#ite the fact that all grou#s are essentially talkingabout similar agrarian issues though they differ in their methods on how to reach their objecties.K3eeLand, "ural #ocial $ovements and %emocratisation in Indonesia, by 6ianto Bachriadi,July, ((), 1I for a detailed look at the arious #ositions and #olitics that hae sha#ed thecurrent dynamics of #easant7farmer moementsL.

    1he 3"&3 $3erikat "etani &ela#a 3awit 4nion of "alm 0il !armers% is an organisation forsmallholder farmers engaged in oil #alm #roduction which focuses on < main issuesA *% land either obtaining ka#lings for farmers or regaining control oer land altogetherP % trans#arencyrelated to dealing between farmers and state7#riate #lantation ownersP and

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    *+F(s. 1he B" later uses this e5am#le to showcase a #ositie moe forward with res#ect toagrarian reform when in fact, it remains an isolated case. 0erall, dialogue is not #roducingtangible results for #easants.

    Q: What are some of the chaenges regarding the !rocess of issuing H23s for the deveo!mentof oi !am !antations?

    1he main issue centers on reconciling state land ownershi# with adat customary rights where, at

    #resent, general usufruct rights are granted on land that is not defined by an official state title. Inthe case where some *F million hectares are already held within H/4 oil #alm #lantation rights,yet only about G million hectares are actiely in #roduction, the res#onsibility falls on the B" toresole issues related to H/4s. 1he #roblem is that a H/4 license can be e5tended or eentraded to another cor#oration in a business transaction, and when the license e5#ires, the landreerts back to the state, not the community from which the land was taken. What com#licatesthe issue een further is that though the B" issues H/4s, it cannot abolish them without are#ort from two bodiesA *% the Ministry of 2griculture and % the Eocal "lantation 2uthority$6inas "erkebunan%. 1he B" can't re=uest a re#ort, only the bu#ati or the local #lantationauthority can re=uest that the B" inestigate a H/4. What that means is that H/4s that haebeen issued in the #ast but are not being #ut to #roductie use for oil #alm #roduction $more

    likely issued to allow for the e5traction of timber and not the deelo#ment of #lantations% remainin circulation, are transacted, and kee# land in an un#roductie state outside of the control of thelocal #o#ulation. 6ecentralisation has in essence shifted some of the #ower from the goernor tothe bu#ati at the local leel, though has not eliminated the #roblem of elite ca#ture of resourcesand wealth.

    Q: How does foreign ownershi! come into !ay in oi !am !antation deveo!ment and how are

    oca !easants and workers factored into this investment?

    2 *+FG national goernment regulation stated that if a com#any was to deelo# an oil #alm#lantation, the incor#oration of workers7farmers was to take #lace ia contract farming schemes.

    !oreigners are not allowed ownershi# of land in Indonesia, therefore they are re=uired to gainaccess to state or #riate land through a H/4 license that e5tends a lease oer a fi5ed #eriod oftime. 1hree years ago foreign inestors asked the goernment to e5tend the lease #eriod to +years instead of the standard , howeer, following massie #rotests by social moementsacross the country, the -onstitutional -ourt ruled that a + year lease was in conflict with the*+G( Basic 2grarian Eaw $B2E%.

    2t #resent, there are numerous outstanding land conflicts that hae note been resoled and whichdate back to the time of 3uharto's ew 0rder. 1he current drie to increase in inestment in oil#alm #lantations is resulting in the channeling of national goernment funds to create new lawsthat #roide inestors with greater security on their inestments. !or e5am#le, a recent law on

    land transfer strengthens the #osition of inestors, though the latter remain concerned oerinconsistent goernment decision8making with res#ect to H/4s. 1he World Bank has fundedland certification #rograms since *+>>> which has made it more #roblematic for #eo#le with adatrights. In addition, many 6ayak reside in land designated as !orestry Eand which e5cludes themfrom the land certification #rocess.

    Q: What is the "iggest chaenge smahoder !easants and rura workers face in Indonesia?

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    1he most difficult obstacle to oercome is the lack of #olitical will to im#lement either the *+G(B2E or the 6ecree 1M" ((* that would see a better redistribution of land to smallholders.1hough leaders #ay li# serice to the cause of 2grarian :eform, little concrete ste#s hae beentaken to #lace control oer land in the hands of #easants. D=ually im#ortant is the lack ofagricultural e5tension serices aailable to smallholder #roducers, as well as the lack of subsidiesoffered to farmers to hel# them engage in #roductie and #rofitable farming.

    K6ianto was leaing for the "hili##ines the ne5t day, so we ended our discussion. His brother,

    Rudi, said he would be aailable the ne5t day to answer any =uestions I had regarding 2:- orissues related to agrarian reform and other social moementsL.

    Bandung Agricultural +esource $entre (A+$) August 7t' / #ource: 8udi Bac'riadi

    Q: 1an you give me more information on the )P/ and the nature of the de"ates they are

    engaged in at !resent?

    !ollowing the *++C /0 conference where 6ianto and ur !au;i were elected as the leadershi#for the newly formed &"2, the organisation's #osition and strategies for agrarian reform wereoutlined and centered #rimarily on adocacy. 1he main focus was to rebuild and reinent issuesof agrarian reform, to #ush the national goernment for reform, and to monitor the Eand2dministration "rogram $E2"% which was funded by the World Bank and essentially entailedtitling land within the framework of e5isting land use and land tenureshi#. 1he E2" started in*++C $check WB website% and its mandate was strictly to formali;e land holdings through atitling #rocess and not to set about redistributing land to the landless or near landless.

    2t the second ational 2ssembly in *+++, the &"2 oted to endorse a threefold mandateAadocacy for agrarian reform, a cam#aign to educate #eo#le at grassroots leel, and to strengthen#easant moements and #easant organisation. 1he &"2 #ressure the goernment to address theissue of agrarian reform which resulted in the #assing of 6ecree 1M" ((* in the national#arliament. In #art, this decree was #assed in the early stage of :eformasi following the end ofthe 3uharto regime, yet it is unclear just how much genuine will would be directed to theim#lementation of the decree. -ertainly former "resident Megawati resisted im#lementation,and no #resident since had included land reform as #art of an election cam#aign. 1he &"2 alsobroadened their cam#aign efforts and #ressured the goernment to establish two bodies, theational Eand 2gency $B"% and the ational -ommission on Human :ights $HuMa>%.

    -urrently, a central debate between &"2 and B" inoles the B2E of *+G(. 1he B" islooking to re#lace the B2E on the grounds that it is no longer reflectie of contem#oraryagrarian issues in Indonesia. 1he &"2, on the other hand, considers the B2E to be ana##ro#riate framework for resoling outstanding national land issues that will recogni;e therights of #oor illagers to a better lielihood, though the challenge remains at the im#lementation

    stage. In ((

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    their own research8based organisation Initially, the focused on ca#acity building of #easants,/0s, and ciil society grou#s under the banner ofPergera*an$"eo#le's -entre and 2docacyInstitute% which ended u# being a #recursor for 2:-, with both bodies still in e5istence to thisday. Most of the tension that led to a #arting of the ways centered on 2/:2 taking the #ositionof strengthening #easant moements through a strong Mar5ist ideology that alienated someactiists and /0s. In ((G, 2:- linked u# with a broader network D"6423 $D. "enelitias6an 2ktiitas 3osyal% and worked within this organisation until ((F8(+ when 2:- becameautonomous from D"6423.

    Q: What are the main areas of focus for /R1 at !resent?

    1he current focus for 2:- is the oil #alm sector, and it is working with the &"2 to deelo#o#tions to engage in joint research initiaties. 1here is a #roblem of stagnation with res#ect tothe &"2 membershi# and the issue of fragmentation amongst #easant moements andorganisations remains an im#ortant one to resole. 2:- is looking at three regions, 3umatra,&alimantan, and 3ulawesi in order to select research sites that will hel# better understand the#resent8day oil #alm industry and its current dynamic state of e5#ansion.

    In addition, 2:- is trying to determine how successful were #ast land occu#ations. It is

    conducting an assessment of *( #easant organisations in Indonesia to assess their status withres#ect to membershi# and land occu#ations. Jiwo has begun research on land tenurial changesin West Jaa in one area where 3"" members hae occu#ied land for oer *( years, and inanother area where Jaanese in 1a#uas reclaimed land that had been taken from them during the3uharto era. 1he initial assessment seems to indicate that is some cases land was sold whileothers were able to accumulate land on the occu#ied site.

    Q: What were the initia and use agreements that were associated with the and occu!ations?

    !or the 3"" members, land was to be used for indiidual use only for #easants strictly engagedin subsistence agriculture. 1he indiiduals in this case do not retain official title oer the land ,

    and the 3"" has set this as one of their objecties when dealing with the B". !or the reci#ientsof land on the 1a#uas site, most #referred to sell their land and work in the city. It is im#ortantto recall that these indiiduals lost their land in the 3uharto era, moed to the city for work, andfor the most #art lost their interest in farming, though not their sense of injustice at haing hadtheir land sei;ed by the goernment without their consent. 2:- is not yet clear on the landtitling issue as being either #ositie or negatie for #easants. 0ur assessment to date seems toindicate that most #easants sell their land once they receie title.

    Q: What !oints are "eing de"ated within !easant movements and organisations regarding !ost4

    occu!ation?

    -ertainly one issue is how to maintain organisation now that #easants hae access to land>2nother #oint of debate, say in the case of 3"I ersus &"2 is should the focus shift now fromadocacy $&"2's mandate% to how #easants could use technology and modern farming #racticesto im#roe their lielihoods $3"I's focus%. 2nother im#ortant #oint to consider is how to engagein sustainable agriculture once land is occu#ied> 1he challenge for #easant moements andorganisations is to determine what will be their area of focusA will it be on agricultural #ractices,or will it be on strengthening land tenure for #easants> 1he E2" is still on going through theB" where registration of #easant land and e5isting land use is underway in many #arts of

    ='

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    Indonesia. "easant organisations in West Jaa are generally of the o#inion that titling willim#roe tenure security and that it offers them an o##ortunity to engage in subsistenceagriculture.

    Q: In his most recent pu+lication, 'Indigenous "eo#les and 0il "alm "lantation D5#ansion,'$artua #irait has called upon government to support alternatives to palm oil! Is this a reuestthat is +eing made +y the )P-?

    1he goernment is currently #re#aring legislation that will re=uire farmers to register with theMinistry of 2griculture #rior to #lanting new cro#s which will essentially #reent farmers fromengaging in agricultural #roduction that is not sanctioned by the goernment.1he &"2 is drawing attention to the #otential negatie effects of this legislation regarding farmerautonomy and rights. 2t the same time, the organisation is also calling for goernment e5tensionserices for #alm oil #roduction, as well as for alternatie cro#s.

    Jakarta August 4t' / #ource: 9artua #irait ($FO+ / $;A+)

    I was able to meet with Martua for about two hours at his home in 3outh Jakarta. We discussedhis research in West &alimantan that led to the #ublication of 'Indigenous "eo#les and 0il "alm"lantation D5#ansion' in ((+. In addition, Martua gae me a brief oeriew of the fieldresearch he is conducting in Eam#ung "roince and /arut, West Jaa as #art of his dissertationthrough the I33 in the Hague. He is officially on leae as a research analyst from the -entre forInternational !orestry :esearch $-I!0:% and the -onsultatie /rou# on International2gricultural :esearch $-/I2:%, though he continues to reiew their res#ectie #ublications and#roide feedback and analysis on a regular basis.

    Q: What are some of the main issues you encountered in West )aimantan concerning

    indigenous !eo!es and the oi !am industry?

    1here were three distinct res#onses from indigenous #eo#les when oil #alm was beingintroduced in their res#ectie areas. 0ne grou# endorsed oil #alm #roduction where somecustomary land was surrendered with some land retained as rubber gardens alongside #lotsdedicated to egetable and fruit cro#s. 2 second grou# endorsed oil #alm and were fullyincor#orated in the industry with no land being set aside for alternatie cro#s or traditional landuse according to indigenous #ractices. 2 third grou# rejected oil #alm from the beginning, andthey maintained their traditional rubber gardens and diersified subsistence cro#s.

    2s antici#ated, outcomes were uneen as noted in our ((+ #ublication. 1he trend has been thatonce the oil #alm starts in one area, it continues to e5#and oer time and local #eo#le#rogressiely see their communal land eroded. Eand inariably became indiidualised, andleaders $adat or desa% stood to be benefit the most by getting more ka#lings or by haing their

    children educated at the e5#ense of the com#any. 1he goernment task force $1"

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    addition to the fact that the body o#erates against the fundamental criteria of the :3"0, ands#ecifically, regarding its #rinci#le of !ree, "rior, and Informed -onsent $!"I-%.

    1he Indigenous "eo#les 2lliance of the 2rchi#elago $2M2% hae in turn called for a halt on alloil #alm #lantation e5#ansions and hae asked for a resolution of all outstanding land issues first.1he 3"&3 is asking for better terms of incor#oration, a written contract, and better workingrelations with the estate, be it state8run or #riate. 0utstanding issues are that years later, somefamilies hae yet to receie their #arcel of land, and in many cases when they are offered land it

    is much less than the hectares #romised. !or those who did receie ka#lings, the e5#ected year re#ayment of credit for deelo#ing the #arcel which was to be followed by receiing cleartitle, ends u# being e5tended to * years or more with the total cost of more than tri#ling whatwas originally #romised, in addition to no clear title within reach of most of the smallholders at#resent.

    When :3"0 membershi# was being discussed at the state #lantation "1"*

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    Idham 2rsyad has been elected the 6irector /eneral of &"2 for the #eriod ((+8(*. I methim in his office in 3outh Jakarta where we had about two hours to discuss arious issues. Heinformed me that funding comes from the !ord !oundation, the D4, and organisations like !rUresdes hommes $!6H%, a -atholic /0 based in !rance.Q: 1an you give me an overview of )P/ and the organisation's current areas of focus$

    &"2 is a consortium of *F) organisations in *G #roinces and our main focus is related to2grarian :eform issues. &"2 has three actie areas of concernA *% 3trengthening #easantmoementsP % 2docacy for agrarian reformP and

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    E2" was im#lemented between *++C8((( through the B", while the ET"6" came into #layfrom the year ((( to ((+ working through B2""D23. Both titling #rograms were su##ortedby the World Bank. 1he main objecties were to facilitate the certification and titling of e5istingland use and land holdings without any #roisions for the redistribution of land. 1he &"2 hasissued a memorandum that outlines our o##osition to the titling scheme because the main#roblem of balance of ownershi# needs to be addressed first, and that the current a##roach totitling sim#ly formali;es and legali;es e5isting imbalances.

    Q: #he )P/ resorts to and occu!ation as a strategy to !ut and in the hands of !easants$ Is thisa successfu strategy?

    1he &"2 considers the following in its strategic #lanningA how to occu#y land>P how to manageland after the occu#ation> and how to influence the goernment to make regulations morefaourable for #easant lielihoods> 1o answer your =uestion, in light of the goernment'sunwillingness to im#lement agrarian reform, land occu#ation as a strategy has been successful todate, though is not without #roblems. 6uring the 0rde Baru there were only two #easantmoements in e5istence, 3"JB in West Jaa $later to become 3""% and 3"I in 3umatra. 1he#olice would regularly e5ert iolence and arrest #eo#le who were agitating for agrarian reform.3"" #easant members in West Jaa hae been occu#ying a##ro5imately )(,((( hectares since

    *++F. 1he land has been brought into actie cultiation since this time, and on occasion #olicestill come by to intimidate or harass 3"" members.

    In ((), the ational Human :ights -ommission $HuMa% #ut forward a #ro#osal to thegoernment to establish a -ommission of -onflict to resole the outstanding issues with landreform. 1he #ro#osal was su##orted by former "resident Megawati, though the current "resident3BR has effectiely blocked the formation of this commission. In Indonesia, our #roblem is notan institutional one, but rather a structural one where #ower graitates within certain circles ande5cludes a broader based distribution of genuine democratic #ower8sharing. 1he goernmentgenerally #refers to use the security a##roach $ie% bring in B:IM0" security forces% to intereneand dismantle land occu#ation areas or #easant farmer #rotests.

    Q: .o what e(tent does )P- wor* with other organisations such as /ia 0ampesina and others?

    1here is no direct connection between &"2 and Tia -am#esina which tends to work moreclosely with the 3"I #easant union and the IE-. 3"" is not a national organisation, but ratherre#resents C regions in West Jaa and is closely affiliated with &"2. In &alimantan Barat, &"2has members in < regions, including 3anggau district, and the 3"&3 is also a member of &"2.!or 3"&3, the main organisations where they draw su##ort is from 2M2 $2llians Masyarakat2dat asional% and 3awit Watch.

    Q: What is )P/'s !osition with regards to the oi !am industry?

    In 3umatra, we are discussing ways in which community ownershi# of land dedicated to oil #almcan be achieed. We look at how the communities can achiee greater social and economicbenefits for members in the community. 3awit is not the #roblem, #er se, but it does undermineagrarian reform in that #eo#le lose access to and control oer land, and oer time are reduced toa landless labour force working for #lantation interests. In 3umatra, we are also looking toaddress the issue of land distribution and to find ways to offset the social and enironmentalnegatie outcomes associated with a #lantation economy. 3inar Mas, which controls oer (N

    =4

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    of the oil #alm area in 3umatra, is one of our main challenges when #ushing for agrarian reformand change of ownershi# schemes for smallholders.

    3A office / (ource. 6hi*ault (imonet, volunteer with $

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    Eamo indicated that two members receied letters of intimidation from the #olice, adding that onthe third letter, the #olice hae legal grounds to arrest them for land occu#ation. In the illage of"ouked Indah, transmigrant illagers started #lanting oil #alm on reclaimed 3inar Mas land in((F, and that since ((, *C illagers gae been arrested to date for land occu#ation. 1woyears ago the illage leader had his house burned down by com#any militiamen, and when the#easants mobilise to occu#y land, the military and #olice are sent in des#ite the localgoernment's su##ort for haing the land in =uestion returned to the #easants. 1he illage of"ouked Indah continues to resist and #ursues a dierse agricultural #roduction of banana,

    coconut, and corn which its sells to a local market ia their illage coo#eratie. In the illage of:antau Badak, G(( transmigrants hae been liing here since ((

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    Indonesians.

    Q: What is the main focus of your organisation?

    1he main focus of our organisation is to adance the cause of social and economic rights forcommunities inoled in the oil #alm industry by lobbying the goernment and the #riate sector

    to address our concerns. We are also inoled in building community ca#acity in order to hel#local #easant farmers and workers achiee greater benefits and fairer returns from theirinolement with oil #alm. 3awit Watch is actiely su##orting communities in main#roincesA &alimantan Barat, &alimantan 1imur, Jambi, :iau, and 3umatra 4tara. We alsowork closely with 3"&3 which re#resents oer G((( members of inde#endent oil #almsmallholder #roducers.

    0ur entry #oint with e5isting #lantations is to su##ort communities inoled in #alm oil whichincludes both labourers and smallholder farmers. 1his inoles #roiding them with informationto hel# them build a stronger #osition when making a claim for better work conditions, greatertrans#arency, or better returns on their inestment in oil #alm, both in terms of land, financial

    commitment, and labour. !or smallholders, the issues inole #ower relations with the estate orcom#any, access to in#uts, and fair #ricing for the harested fruit. !or labourers the issues tendto graitate around worker rights, working hours, and working conditions. 1here are, of course,many issues related to land conflict and com#eting land claims.

    In areas where #lantation e5#ansion is the issue, we look at ways to su##ort indigenous #eo#les'land claims and local communities affected by #otential oil #alm e5#ansion. Eand rights are anim#ortant focus, in addition to ways to achiee sustainable rural lielihoods. We look at ways inwhich land tenure #olicies at the national and subnational leels affect local communities andhow these #olicies #lay into the #rocess of land ac=uisition.

    Q: What are some of the main !ro"ems that your organisation has identified in reation to theoi !am sector?

    In Indonesia, one of the main #roblems is structural #roblems at the national and subnationalgoernment leels that includes such issues as oerla##ing #olicies between com#etingministries i.e.% forests, agricultural etc. 2lso, a major #roblem centers on how #olicies areim#lemented by the goernment and how com#anies are allowed to not fulfill their obligations tosmallholders, workers, and communities, or how currently about only half of the com#anies haelegal #ermits to deelo# oil #alm in Indonesia, yet continue to o#erate and e5#and. In thisregard, these com#anies which don't hae legal #ermits to deelo# oil #alm, largely do so underthe authority of the bu#ati and effectiely by#ass legal channels in #ractice. 1here are serious

    issues related to communication of information and trans#arency as well.

    In terms of the land tenure conflict, the goernment has inited inestors #rior to #ro#erconsultation with the communities inoled in the the #rocess. 1he goernment is alreadyclearly in iolation of its own socialisasi #rocess which is a necessary ste# to legally deelo#ing#alm oil #lantations. 2lso, from the 3awit Watch stand#oint, the goernment lacks #ro#erinformation as to which land is #riate, which land is communal, and which land is state landPtherefore, it is not in a #osition to inite inestors to deelo# oil #alm until this land issue is

    =8

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    made clear. "resently, only about C(N of the land in Indonesia is registered, and the G(N areathat is non8registered directly inoles large #ortions of the Indonesian #o#ulation. 1hegoernment claims full authority on all non8registered land, yet much of the land is beingactiely and #roductiely used by communities, though they remain unregistered. 1hegoernment needs to com#letely reform its #olicy regarding community land rights, to #ro#erlyidentify community lands, and to deelo# effectie mechanisms to fairly resole land dis#utes.

    In our e5#erience, the #roincial and community borders themseles often lack clarity and are in

    conflict with one another. 1he resolution of border dis#utes falls under the Ministry of theInterior. !or e5am#le, we are assisting in a case where a com#any o#erating in 3umatra is notsure with which district they need to register their land dis#ute claim, either :iau or orth3umatra, because of the oerla##ing claims and lack of clarity of boundaries. 2nother issueinoles a breakdown in the #rocess occurs when the bu#ati issues a #ermit to a com#anywithout a clear understanding of the land status, and also without the authority to issue a H/4which can only legally be issued by the B". 2s a result, many com#anies o#erate without a#ro#er license which means they are not #aying #ro#er ta5es on the land, nor on their o#erations.1he B" ado#ts a #assie stance and doesn't #roactiely seek to sole the #roblem of illegal oil#alm o#erations.

    Q: Why is the government not "eing !ro4active in soving the icensing issue if it means ostrevenue for the government?

    1his is a difficult =uestion to answer, but on the one hand the e5em#tion from haing to #ay landta5es because of the lack of a H/4 works as an incentie for inestors to inest in the oil #almindustry in Indonesia. "alm oil is a ery #rofitable sector. 0n the other hand, the H/4 #roblemis difficult for the goernment to sole because many #ermits hae been issued in landdesignated as forest which is an illegal allocation of land. 1o deal with the H/4 inoles haingto sort out which forest land was deelo#ed into oil #alm and which one wasn't. :emember thatoil #alm can only be deelo#ed on non8forest land where forest land is su##osed to be firstconerted to agricultural land and taken out of the forest reseres. If the B" would attem#t to

    issue H/4s to com#anies that now lack a legal #ermit, the H/4 would be considered illegalbecause the com#anies are o#erating on land designated as forest.

    In &alimantan Barat, we found that

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    centralised and the largest #ortion of the ta5 reenue goes to Jakarta. 1he -"0 ta5es arechanneled e5clusiely to the ca#ital. In the case of the land and building ta5es, the majority isintended for the local goernment, so there is little incentie for the national goernment toenforce legal re=uirements gien that Jakarta has little to gain financially from the increased ta5reenue. Most of the largest oil #alm income earners in in Indonesia are com#anies based inJakarta with some im#ortant ones also based in Malaysia.

    2n im#ortant #oint to consider also, is that most of the middle and u##er management of the oil

    #alm industry is registered in Jakarta which is where their income ta5 dollars stay, while generallabourers and lower income #eo#le are registered in their local areas, are ta5ed locally, and thebulk of their ta5 money stays locally. 1his hel#s e5#lain why the infrastructure and #ublicserices are so #oorly deelo#ed in rural areas across Indonesia. 1he skewed ta5ation systemfaours a wide dis#arity between central ca#ital and local rural in the country. 1he lack ofreenue that stays locally, in addition to the reliance on the multi#lier effect to generate localreenue, creates a situation where there is a need to continually e5#and oil #alm#lantations to hel# raise standards of income rurally. It is an odd situation where a skewedta5ation system $and multi#le illegalities% add to the argument for a greater e5#ansion of landdedicated to #lantations. 1he e5#ansion is a ery big issue and behind it lies the corru#tionrelated to the issuing of #ermits.

    Q: /re there efforts to revise the ta%ation system in order to "etter serve oca communities?

    1his would be ery difficult in the Indonesian conte5t. 1he central goernment, until now, hasnot demonstrated a willingness to tackle this issue. 1o date, no one has raised the signal ofdealing with the issue of redistributie ta5ation with reenue generated from the agriculturalsector. 1his has only been a##lied to oil and gas so far.

    1here are many benefits that could follow on a reision of the ta5ation schemes that go alsobeyond infrastructure and the #roision of #ublic serices. !or e5am#le, funds channeled locallycould be used to deal with e5ternalities like floods that occur fre=uently during the rainy season

    or #ollution as a result of #alm oil #roduction. In 3anggau district, the Ministry of Water ishaing to deal with a serious com#laint related to the contamination of local water from effluentscoming from -"0 mills. It is a local #roblem, yet most of the wealth is directed to the centralgoernment. I attended a meeting last week on oil #alm #roduction in &alimantan 1imur, andthe annual #roduction alue of -"0 is a##ro5imately 43 ( billion, yet little of that moneystays in the local communities. 1he majority funnels #rimarily to foreign inestors and a small#ercentage stays as -"0 ta5 destined for Jakarta.

    K2t this #oint, "ak 2betnego showed me his "ower"oint #resentation on the e5#ansion of oil#alm in -entral &alimantan from ((< to ((F from a isual stand#oint using ma#s. 3ee slideshow in the field documents file entitled 3awit Watch 2betnego 1ariganL.

    In the case of &alimantan, the total land area was * million hectares $check did he say ( or*> unclear%, while the area e5cluded from #lantation concessions is .C million hectares whichincludes the riers. More than half of the concessions are issued by bu#atiA C. million hectaresare dedicated to oil #alm concessions, yet e5isting #lantations coer +(( ((( hectares, of whichonly C( ((( hectares hae a #ro#er H/4. 1herefore the national goernment collects land ta5only on half of the current oil #alm #lantation land. 2##ro5imately

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    !rom our stand#oint, this is one of the #roblems related to the corru#tion issue that is a challengefor the national goernment. In informal discussions, we hae learned that the bu#ati receies:# * billion #er *((( hectare released into oil #alm concessions. 1he com#any then says thatthey hae documents signed by the bu#ati, een though the com#any is legally obligated tonegotiate with the local community. !rom a more e5treme #oint of iew, oil #alm is notdeelo#ment, it is con=uest. In many cases, local goernment $camat, ke#ala desa7dusun% haecons#ired with the com#any to by#ass legal #rocesses to benefit themseles #ersonally and to

    #romote com#any interests oer those of the communities they are su##osed to re#resent. Inaddition, in the socialisasi #rocess, neither the goernment, nor the com#anies #ro#erly e5#lainto the #eo#le the risks and benefits of oil #alm. In #articular, the risks get oerlooked, es#eciallywhen you consider that -"0 is a commodity subject to international market fluctuations.!armers generally only hear about the benefits of oil #alm from the com#any #ers#ectie. 1hereis a lack of trans#arency and clarity as to the amounts of land, credit, and com#ensation, ande5#ected earnings, and there is little written documentation to refer to.

    Q: What is your im!ression of how smahoders are "rought into !asma schemes?

    2#art from the lack of understanding farmers hae on the risks inoled in the oil #alm industry,

    as well as the lack of trans#arency on multi#le leels including where their #lasma #lots will belocated in relation to the illage, what debt will be incurred and for how long, etc., smallholders,hae in many cases been deceied from the outset. In the case of "1" *< for e5am#le, many ofthe ka#lings were underdeelo#ed by the state with res#ect to industry standards. Dach hectarewas to hae * seedlings $bibit% #lanted on it, yet in a lot of cases only F( to *(( trees were#lanted with the remaining seedlings sold for #rofit at :# ((( each. 1here is a serious#roblem of corru#tion regarding the deelo#ment of the #lasma land. How are these #lasmafarmers to become #roductie> 1hese ka#lings naturally end u# #roducing much less fruit gienthe reduced number of tress, yet the estate #osition tends to be that the 6ayak are la;y and don'to#timi;e their #lasma holdings for high yield. 1his is the stigma that is associated with many ofthe 6ayak #lasma farmersP also, that the 6ayak are not fit to become oil #alm farmers.

    1he 3"&3 farmers didn't know what was the industry standard for * hectare of land, and 3awitWatch has hel#ed inform them of the nature of the industry. !or e5am#le, 3"&3 #easant farmersin Dast &alimantan ins#ected their #lasma #lots, reali;ed they were sub8standard relatie to thenumber of re=uired trees, and refused to sign their contracts. Who takes res#onsibility for thesesubstandard #lots> In reality, it is the goernment's res#onsibility to enforce the industrystandard and to #ressure the com#any to fulfill their contractual obligations, yet this oftentimesdoesn't ha##en for com#le5 reasons, be it corru#tion or sim#ly by the com#any's $#riate orstate% creatie way to aoid the #roblem and shift the blame. 1here are good e5am#les ofsmallholders in 3umatra that are doing well in oil #alm, but it has nothing to do with eithergoernment #olicies or com#any su##ort, but rather community initiatie to #ro#erly manage

    their #lots and look to benefit from the o##ortunities #resent. In many meetings with the #riateand state #lantation managers, they fail to #roduce regulations that outline #lasma standards thatwould enable smallholders to become more efficient and #roductie growers.

    Q: /re there terms in the contract signed "y the com!any and the smahoder that outine the

    conse9uences of faiure to com!y with its contents ie$ in the case where su"standard !ots are

    deveo!ed "y the estate?

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    1here are no such #oints outlined in the contract. In many cases, we found that com#anies toldthe farmers, ?We will re#air the substandard #lots. Just sign the contract.@ 1he farmers signedthe contract without knowing the industry standards. When we offered training to the farmers inDast &alimantan, at the end of the session, some of the farmers were crying, saying that ?aftertwenty years of farming in oil #alm, we neer got any training. o wonder we struggled somuch.@ 2 big #roblem is that oil #alm is #romoted without ca#acity building that should includegoernment e5tension serices. 1he reality is that oil #alm is #romoted as a means of accessingland, and "1" *< is not different from #riate com#anies.

    Q: Woud you say that "y kee!ing !asma hodings at su"standard eves aso "ecomes a means

    of accumuation for individuas or com!anies that go on to ac9uire ka!ings from faied

    farmers?

    Many, many #lasma farmers failed and in a large number of cases the #lots were sold to#lantation managers. Many of the managers at "1"*< accumulated land this way, as did#eo#le liing in Bodok and elsewhere who #urchased the failed #lots at a good #rice. 1here arealso cases where farmers cannot contend with the management of their ka#lings due to lack ofca#acity and e5tension serices by the goernment which leads them to sell their #lots and seek alielihood elsewhere or in another area as is the case with many "a#uans who are #resently

    selling their oil #alm #lots.

    I'm not one to s#eculate too much about cons#iracies or the like, but I do think at times that thesubstandard #lots are deelo#ed by design. 1he com#any and goernment don't really hae a biginterest in deelo#ing #lasma #lots because the main focus is on the estate 7 inti land. When3uharto started with the inti8#lasma schemes for oil #alm in the *+)(s, the ratio was (AF( under"I:81rans where the bulk of the land was held in #lasma for smallholder #roduction. Why is itcalled inti> Because inti is not bigS 1here were many #roblems with #roduction, ca#acity, etc.and mills were not running at #roduction with #lasma which led to a shift in deelo#mentschemes where #lantations seek to increase estate holdings. ow, there are many #lantationsthat are deelo#ed without #lasma $cites e5am#les where no #lasma e5ists in oil #alm

    deelo#ment unclear on recording%. ew generation of #lantation schemes started around(((. -om#anies would build #lasma if there was conflict with land ac=uisition. When#easants resisted giing u# their land, then the #lasma card is #layed by the com#any. In thecurrent e5#ansion stage, we will see the majority of the land will be held as inti land, and anincreasing number of farmers will be #rogressiely s=uee;ed by land shortage on the one handand labour sur#lus on the other gien the limited ca#acity of #lantations to absorb labour. 2irtual time bomb is in motion, and in some res#ects it is already started. 1here will be anincrease in the imbalance in landholdings between com#any and communities.

    Ironically, the 3uharto era #lasma scheme offered more o##ortunities to farmers than the currentmodel of majority inti, in s#ite of all all the corru#tion associated with his regime. !rom the

    current model stand#oint, it is easier to manage the workers on the #lantation than it is to managethe #lasma farmers because the latter retains inde#endence to some degree while the former istotally de#endent on the com#any.

    Q: /ccording to Sawit Watch0 how then shoud oi !am "e deveo!ed and managed?

    ow there is some debate within 3awit Watch about this #oint, and I will gie you one#ers#ectieA to bring back the com#any #lantation as a trigger for deelo#ment, meaning that the

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    original #lantation scheme can be reinstated where the majority of the land is owned by #lasmafarmers and they are the main #roducers of the oil #alm fruit.

    My e5#erience with a community in orth 3umatra that has struggled to receie its #lasmaholdings which dates back to *+)F. 3o far, they hae not receied the land, but the community#o#ulation has gone from (( families to (, and yet they are still struggling to regain the initialland holding of *G+ hectares from oer three decades ago. 1hey were originally struggling forlielihoods and now they are struggling for housing and lielihoods.

    !or the com#any, the issue is to find a way to access the raw material $1B3% to #roduce -"0which is where the money is being made. 1hey are not interested in the land #er se, but in theraw material from the land which can be #roduced by communities. When you look at Jaawhere an indiidual may own (. or (. ha and yet a com#any can control *((( hectares, youget a sense of the imbalance that eentually creates a time bomb.

    1he key is how to transfer the management to the state, and through the state, back to thecommunity> 1his has neer been the intent of #lasma8inti schemes, yet it needs to be consideredas an o#tion for genuine deelo#ment to occur and for oil #alm to be a trigger of deelo#ment.

    Q: What is Sawit Watch's !osition on the current &/PP;6/S and titing !rogram?

    :emember that the titling #rogram is not taking #lace in areas where there are serious landconflicts like in &alimantan or elsewhere.

    1he issue debated is often surrounding communal land. !rom our #ers#ectie, land titling is nota #roblem #er se, but rather what is the ca#acity of farmers, what e5tensions are being madeaailable to su##ort rural lielihoods>

    1he e5#ansion issue is an im#ortant one because the machine of unem#loyment in Jaa is alieand well and is driing the goernment to #romote #lantation e5#ansion as a solution to the

    unem#loyment #roblem. 1he #roblem in Jaa is not soled by #lantation e5#ansion. In#lantation areas, such as orth 3umatra, there is increasing unem#loyment. 2lso, in 3umatra,we hae noticed that labourers on the #lantation earn less than on #lasma holdings. In an oddway, the image of a #lantation worker is better than working for a smallholder in that some#restige is associated with #lantation work. It was interesting to witness a debate last year abouthow the -"0 from Indonesia and Malaysia is sold on the international market at the same #rice,yet the #lantation wage is considerably higher in Malaysia, to which the Indonesian com#anieshad no res#onse. 1he com#anies here may claim that they are #aying the workers the minimumwage as determined by the goernment, yet they fail to acknowledge that the wage is not sectors#ecific and that it re#resents and aerage wage across all sectors. In my o#inion, the com#anyuses the minimum wage line as a sca#egoat to aoid #aying a decent liing wage.

    Q: In genera0 how do you com!are oi !am in some !arts of Sumatra with that in )aimantan?

    0ne big difference is that in 3umatra, some communities hae retained control oer the#roduction #rocessA they manage their #lots, they grow their fruit, and they see reenue returnedto their community for infrastructure and serices. In &alimantan, in contrast, much iscontrolled by the state 7 com#any #lantation and little seems to be channeled back to thecommunity. In many res#ects, the big difference is one of #ower relations that are ery much

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    skewed in faour of the state7#riate com#any in &alimantan in com#arison to oil #alm in some#arts of 3umatra.

    Q: 1an you te me a"out the atest government scheme entited the Revitaisation Pro.ect that

    "egan in +,,

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    army and #olice force if local resistance is sufficiently high. !or Indonesia, making a changetoward democracy inoles breaking out of the mindset of money #olitics and look for ways todeelo# industry in the country that brings greater returns by #roducing alue8added #roductsinstead of sim#ly being an e5#orted or raw goods.