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Monitoring Timber Legality Assurance System (TLAS/SVLK) in two

management units in Jambi Province: PT Wirakarya Sakti and

PT Lestari Asri Jaya

Scrutinizing implementation of TLAS/SVLK related to illegal activities in the

concessions and endless violent conflicts

Joint Report by KKI WARSI and WWF-Indonesia

November 2015

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Table of comparison of certification result and monitoring findings by independent

groups: 1. PT Wirakarya Sakti and 2. Lestari Asri Jaya

Management Unit

Certificate

Reference of Regulation

Criteria/ Indicator/ Verifier

Independent Monitoring by WWF-Indonesia and KKI Warsi

PT Wirakarya Sakti Holder of Timber Plantation Concession Permit (IUPHHK-HT) with area of 293,812 hectares in Tanjung Jabung Barat, Tanjung Jabung Timur, Batang Hari, Muaro Jambi and Tebo districts of Jambi Province

S-PHPL Certificate number 824 407 140018 Certiticate validity: 11 October 2014 to 10 October 2019 Auditor: PT TUV Rheinland Indonesia

Director General of Forest Utilization (Bina Usaha Kehutanan) Regulation No. P.5/VI-BPPHH/2014 dated 14 July 2014 Annex 1.2 Standard for Assessing Sustainable Forest Management Performance and Timber Legality Verification on IUPHHK-HT License Minister of Forestry Regulatio No. 43/Menhut-II/2014, as amended with Ministry of Environment and Forestry Regulation No. P.95/Menhut-II/2014 and Director General of Forest Utilization

(based on audit by Certification Body PT TUV Rheinland Indonesia dated 25 October 2014) 1.1. Certainty of the Concession area of IHPHHK-HTI Holder Score : Good Justification: - There is a boundary conflict and there is effort from license holder to continuously solve the conflict. - There is a change of area function and there is change on planning and validated according to the company’s Revised Long

Monitoring period: October 2014 – June 2015

Score based on monitoring: Poor

PT. Wira Karya Sakti is found of not being able to assure area certainty and utilization rights over the area granted to them through IUPHHK-HTI license. Based on field findings found by KKI Warsi and WWF-Indonesia team, there are land clearing in conservation area of Landai River and there are acacia planted

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(BUK) Regulation No. P.14/VI-BPPHH/2014 jo. P.1/VI-BPPHH/2015.

Term Work Plan of Plantation Forest concession (Rencana Kerja Usaha Pemanfaatan Hasil Hutan Kayu Hutan Tanaman Industri-RKUPHHK-HTI).. - There was evidence that PT. Wirakarya Sakti has collected data and reported all area utilization outside forestry sector found in their area to the authority and there is effort from the license holder to prevent area’s utilization for non- forestry allocation without any permit. 1.2.Commitment of the permit holder Score: Average Justification: - Socialisation has been conducted on license holder level and some community evidenced by minutes of meeting (Berita Acara) - Sustainable forest management only meet some of the company’s vision and mission 1.5. Free, Prior and Informed Consent Score: Good Justification: - Annual Work Plan (Rencana Kerja Tahunan-RKT) for Planting and Harvesting in PT. Wirakarya Sakti area that will affect local community rights have been approved

outside of the concession area, as well as class C mining. The team also found that in district 8, there was protected forest with its riparian site was planted with acacia by the company through land clearing from riverside by 17 metres measured from riverside of Landai River.

Score based on monitoring: Poor

The company’s performance is not assuring. Socialisation is conducted only to some community, more detail is necessary if “some” as indicated in the report has constituted a percentage (50%? 60%?, and so on?); is there any quantity, thus the justification is adequate to categorise this indicator as passing grade.

Score based on monitoring: Poor

The monitoring team questioned the result of certification body assessment seeing the escalation of conflict that is in general categorised as latent and potential to, even, be erupted since last couple of years. It is

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based on sufficient prior informed consent. - There is agreement made by some stakeholders on the process of boundary delineation of PT. Wirakarya Sakti’s IUPHHK-HT -licensed work area. --There is agreement for the process and implementation of CSR/CD by local community --There is agreement in protected area designation by stakeholders. 3.1. The existence, stability and condition of the protected area in each type of forests Score: good

difficult to see the fulfilment of Free, Prior and Informed Consent by community in transparent and quantitative as there are still communities that lack of prior information. From investigation, initial socialisation is only directed to village elites. There is no FPIC found in Parit Bilal, Sungai Beras and Lubuk Mandarsah Village. As a backgroujnd, In Lubuk Mandarsah Village, monitoring team found there has been land occupation against community in Landai River sub-village since December 2007. The case has been solved in form of partnership but there is no further implementation in the field. The conflict is then accumulated, which resulted with the murder of Indra Pelani on 27 February 2015. Since there is still unsolved social conflict and the potential of violent explosion between community and the company (based on data from NGOs in Jambi) shows that field reality is different from certification result.

Score based on monitoring: Poor

Is an area is protected on each forest type if that is harvested by the company? Based on field finding, there are land clearing in conservation area of Landai River and there is acacia planted outside concession area and there was also class C mining.

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4.1. The clearness of delineation of company/ license holder’s operational area against the customary law community’s area and/or local community Score : average Justification: -Management unit has most of documents related to pattern of ownership and utilization of local natural/forest resources, identification of basic rights of customary law community and/or local community and forest resources utilization plan by license holder. -There is no special mechanism for participatory boundary delineation/ boundary reconstruction, however, the company has mechanism to solve land conflict and there is evidence of land conflict resolution agreed by stakeholders. 4.2. Implementation of corporate social

In district 8 of management unit concession, there is riparian that designated as protected forest but found to be planted with acacia and PT. WKS was indicated to land clear the area further to riverside and it is in radius of 17 metres from the riverside.

Score voted by monitoring team: Poor

Due to there is no special mechanism for participatory boundary delineation that is found, this should be factor for this criteria/indicator/verifier to fail. In particular, the problem of delineation between the MU and community in some villages is still not solved with satisfying process or result. Area boundary is crucial to monitor forestry dynamic on the ground.

Score based on monitoring: Poor

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responsibility in accordance with the existing regulation/rules Score: Average Justification: - MU has implemented their social responsibility to community as implementation of basic rights by customary law community and local community in forest resources management - Based on field verification there are evidences of agreement on social responsibility and its realization as found from minutes of meeting in handing over aid as well as the documentation and photographic documentation - There is social management report related to implementation of MU’s social responsibility including compensation. However, the report only consists of financial data, photos of activities and minutes of meeting, which is not provided by problem analysis, success stories and evaluation on activities. 4.4. The existence of mechanism of reliable conflict resolution Score: Good Justification - There is complete conflict resolution mechanism with clear path and phases to end conflict

There is no analysis on problem and success as well as evaluation of activities related to company social responsibility shall be indication of management unit’s failure in this indicator. The issue is fundamental and important, compared to the issue of photographic documentation that is far less substantial. There is issue with conflicts between community and management unit that is still rampant in Jambi that resulted with two casualties from communities due to the conflicts with the MU, because gunshot by police (Senyerang) and brutal company’s security guards killing Indra Pelani (from Lubuk Mandarsah village). There are also other cases of violences such as in Lubuk Mandarsah and other villages. With no “analysis on problem and success and activity evaluation” for “report on social management related to implementation of management unit’s social responsibility” shows that management unit is not eligible to be passed on this indicator.

Whether justification of point 4.4 is effective is doubted as largely conflict take place in general is latent and potential to violent burst since several years ago. It is difficult to see the fulfilment of Free, Prior and Informed Consent (FPIC) by community in transparent and quantitative as there are still

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-Based on the above explanation, MU has complete and clear conflict roadmap and there has been conflict resolution conducted based on mechanism developed by MU. -Based on the above explanation, conflict resolution institution owned by MU can perform the duty well and it is accepted by stakeholders. -Based on the above explantation, MU have documented conflict resolution ever happened in the MU, however there is no detailed analysis on the occurrence and no direction/recommendation for lesson learn in the future

communities that lacked of prior information. From investigation, initial socialisation was only to village ellites. There is no FPIC found in Parit Bilal, Sungai Beras and Lubuk Mandarsah Village. In Lubuk Mandarsah Village, historically there was eviction by management unit against community who inhabit land in Landai River Dusun, in December 2007. The case has been solved in form of partnership but there is no further implementation in the field. The conflict is then accumulated, resulted with the murder of Indra Pelani on 27 February 2015. In Parit Bilal Village: Partnership such as Timber Plantation Partnership (Hutan Tanaman Pola Kemitraan-HTPK) and Community Forest Partnership (Hutan Rakyat Pola Kemitraan -HRPK) has been agreed by management unit and community but it has not been implemented accordingly. In Dusun Jawa Timur of Sungai Beras Village: there is land dispute between community and the management unit in 2014 when community planted crops in an area they claimed as theirs. But WKS management unit claimed that it was its concession’s and then the community’s plant was removed and replaced by management unit. The community then retaliated by pulling out the Management Unit’s plantation. On recent violence issue, there is letter requesting

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confirmation from PT. TUV, represented by Head of the CB, regarding information they received from the news of a murder case of one man in District 8 of PT. Wirakarya Sakti PT TUV is certifying body who issued SVLK certificate for PT WKS. The letter requested clarification of this significant case. However, KKI Warsi and WWF-Indonesia as forestry independent monitoring network could not obtain the respond and answer of the management unit and the group that owned the company (APP/ Sinar Mas Group) on the request fom PT. TUV. According to monitoring network, the case of the deceased Indra Pelani, a young farmer activist from Lubuk Mandarsah village, is a significant case where violence and alleged human rights abuse is still happening in forestry corporate, including in PT. WKS. The District 8 of management unit’s concession still has potential conflicts since the community claim an area they manage in size of 1,660 hectares (verified number by Warsi despite community claimed it 3,000 hectares previously. Due to no case analysis, direction and recommendation from MU. It shows the weakness of criteria/indicator/verifier in this case. In the Certificate Decision Letter as written by Certification Body, on the “DECISION” section, the clause says:

“Certificate can be terminated when: a. Certificate Holder is not available for surveillance after 3 (three) months of certificate suspension; b. be found guilty to commit

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some violations such as harvesting outside of designated block, committing human rights abuse, purchasing and/or accepting and/or storing and/or processing and/or selling illegal timber…” It means that management unit’s SVLK certificate can be terminated if they are legally proven to violate human rights. The case of the murder of a farmer activist, Indra Pelani, is considered as human rights violation due to heinous murder that committed by WKS security guards. Law enforcement should be a spearhead of SVLK implementation by the stakeholders to improve the quality of such a system.

PT Lestari Asri Jaya With area of 61,495 hectares Location: Tebo District, Jambi

S-LK

Certificate

number

032.2/EQC-

VLK/II/2015

(Revision 2)

19 Feb 2013 s/d 18 Feb 2016 Certiticate validity: 19 Feb 2013 s/d 18 Feb 2016

Annex 2.1 Director General of Forest Utilization (Bina Usaha Kehutanan) Regulation No P.14/VI-BPPHH/2014.

(based on resume of Timber Legality Verification Result by PT Equality Indonesia, 6 February 2015) P.1. Area certainty and management rights K.1.1. Forest management unit is located in Production Forest area 1.1.1. The permit holder is able to show the validity of its IUPHHK (Permit to utilize forest products) and other

Monitoring period:

October 2014 – June 2015

Monitoring result: not qualified

As found from field finding, the

Management Unit is not able to

prevent harvesting in the

wildlife protection zone (DPSL).

Field monitoring also found

there are illegal logging inside

concession where the logs

transported from PT. LAJ

concession in Sumay Blok of

Pemayungan Village allegedly by

outsiders.

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P.2. Compliance with legitimate logging system and procedure K.2.1. The permit holder has a logging plan in the cutting area that has been endorsed by the competent authority 2.1.1. RKUPHHK (Work Program for the Timber Forest Products Use)/RPKH (Forest Sustainability Management Plan) and RKT (Annual Work Plan)/ Work Diagram/ RTT (Annual Technical Plan) endorsed by the competent authority Verifier b. Map showing area where no cuttings are allowed on the RKT (Annual Work Plan)/ Work Diagram / RTT (Annual Technical Plan) and the

Photo 1. Log from illegal logging in Afdeling Endelang 1. The logs have no production result tag (LHP, Label from management unit). The logs are found on S 1:09’34,8“and E 102:26’37,7”

Photo 2. Truck PS 100 that transported illegal log passing APP logging corridor, a finding in field monitoring. Photo location: S

00109’38,31” E

10226’42,22 “

Monitoring result: Not

Qualified

As PT. LAJ does not protect

protected area with area of

9,161 Ha to keep its protection

function, where some of the

natural forest area found to be

cleared.

The protected area in PT. LAJ

consists of : 1) Protected forest

and national park: 3,581

hectares; 2) River buffer zone:

2,327 hectares; 3) Germplasm

Preservation Zone (KPPN):

1,397 hectares, and zone for

wildlife protection (DPSL):

1,856 hectares where the

monitoring team estimated this

is area that not protected due

to natural forest clearing.

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proof of its implementation in the field Score: Qualified Justification: Map showing area where no cuttings are allowed is available and found to have been developed by valid procedure and verified in the field. K.2.2. The availability of valid Work Plan 2.2.1. The permit holder has a valid Work Plan complying with the applicable regulations Verifier b. Conformity of location and volume of natural forest’s timber utilization on area of land preparation that is approved for industrial timber plantation development. Score: Qualified Justification: In 2013 and 2014, the company has used natural forest timber from land clearing area to develop industrial timber plantation. The volume of logs from natural forest found not to exceed the volume from their annual work plan (RKT).

The monitoring team also found PT. LAJ conducted land clearing area outside concession. The management of PT. LAJ in Sumay Block conducted land clearing the area adjacent to its working area. The area is estimated to be around 150 hectares. After the log is taken out, PT. LAJ continued its land clearing on the area and the soil is now ready to be planted. There is the need for data on logs volume from natural forest is used and if the data is accessible by public and reported by Certification Body since there is no explanation on the document completeness. The monitoring team found logs cleared by illegal loggers that took place in Afdeling Endelang 1 site. The logs are not tagged (no LHP tag. LHP, production result report) by the management unit. The logs found are located on S 001:09’34,8“ and E 102:26’37,7

Hence, some points on this

indicator suggest the score is:

Not Qualified.

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P.3. Validity of logs trade or transfer K.3.1. The permit holder guaranteed that all logs transported from Forest TPK (Logyard) to intermediary TPK and from the intermediary TPK to the Forest Products Primary Industry (IPHH)/ market, possess physical identity and valid documentation 3.1.2. All timber transported out of the concession area is covered with transport document indicating the legality of forest products Verifier:… Score: Qualified Justification: All logs transported from license holder concession is completed with legality certificate (SKSHH) and accompanied by SKSKB and FAKB (Log transportation receipt)

PT. LAJ has installed billboard

with company’s name in

February 2015 to inform that it

sits inside protected area, which

has been developed by

Pamayungan community since

2006. The land is controlled by

the community for rubber

plantation with total area of 100

hectares.

The monitoring team found

there is an overlap of land used

in Semambu Village, Block IV, or

around Endelang River with

total area of 3,000 ha. The

community claimed they have

used land/natural forest that

located on the upstream of

Semambu River since a long

time ago. Logs transported

from Management Unit

concession do not have label

from Production Result Report

(LHP) from concession license

holder.

This indicator should be Not

Qualified,

as there is no record of timber

transported outside forest log

yard (TKP) since monitoring

team found timber sourced

from illegal logging in Afdeling

Endelang 1 site. The log found

with no LHP tag from

management unit as the license

holder. The logs are located on

S 001:09’34,8“ and E

102:26’37,7

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3.1.4. The Permit holder is able to testify the availability of records of timber transport out of TPK (Logyard) P.4. Compliance with environmental and social aspects related to harvest K.4.1. The permit holder has acquired AMDAL (Environmental Impact Analysis)/ DPPL (Environmental Management & Monitoring Document)/ UKL (Environmental Management Efforts) and UPL (Environmental Monitoring Efforts) and perform all obligations stipulated in the environmental documents 4.1.1. The permit holder has acquired AMDAL/DPPL/UKL/UPL comprising ANDAL (Environmental Impact Study), RKL (Environmental Management Program), and RPL (Environmental Monitoring Program) that have been approved according to the existing regulations that applicable in its concession area

Despite the management unit

Amdal, the approval history of

the management unit’s Amdal

should be brought to improve

the current SVLK

criteria/indicator/verifier.

The lack of consultation with

key stakeholders and no

involvement of NGOs including

KKI Warsi during Amdal

consultation and also the

allegation that the Amdal

document of PT. LAJ is identical

with Amdal document of PT.

WKS has to be clarified by

management unit. The

monitoring team also receive

information from public that

there was report lodged to the

National Police. The report has

been delegated to local police

that community signature is

forged for the consultation. The

case is not proceeded to the

legal process since the key

eyewitness does not want to

testify. Even though the Amdal

document is complained, the

document is still approved by

the government.

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Monitoring Timber Legality Assurance System (TLAS/SVLK) in two management units in

Jambi Province –PT WKS and PT LAJ-- by KKI Warsi and WWF-Indonesia

SUMMARY

The Indonesia Conservation Group (Kelompok Konservasi Indonesia) WARSI that based in Jambi

and WWF-Indonesia conducted joint investigation in October 2014 to June 2015 related to the

Timber Legality Assurance System (TLAS/SVLK) performance of two management units in Jambi

Province, namely PT. Wirakarya Sakti (WKS), a timber supplier of Asia Pulp & Paper (APP) /

Sinarmas Group, and PT Lestari Asri Jaya (LAJ), a rubber plantation supplier of Barito Pacific

Group.

The investigation team found some findings that allegedly breach regulation and the team

questioned integrity of SVLK certificates granted to the both management units. Analysis

conducted by KKI Warsi and WWF-Indonesia finds there are gaps between scores that gained by

management units through SVLK certificates and the condition on the ground that the

monitoring groups, Warsi and WWF-ID, observed independently. The investigation by these two

organizations jointly conducted from October 2014 to June 2015.

After several months monitoring operations of PT. WKS District 8 and PT. LAJ related to SVLK

implementation performance of both management units that associated to APP and Barito

Pacific groups respectively, some facts on the ground were found and concluded: alleged breach

against SVLK rules might occur.

Some field findings indicate violation of SVLK due to the company’s own operation. Some of the

findings are related to latent social conflict (encroachment by settlers along APP corridor road)

and human rights violation that resulted to the murder of indra Pelani, a farmer from Sekato Jaya

farmer group of Lubuk Mandrasah Village) around PT. WKS District VIII. Some operation also

found to cause ecological destruction in the area.

While illegal logging in the management unit of PT. LAJ shows there is weakness in the TLAS/SVLK

assessment that heavily focus on fulfilling documents. There is social conflict outbreak found by

monitoring team and the conflict is painted with brutal murder by security guards of

management unit that cannot be ignored by SVLK stakeholders. SVLK should be on the side of

humanity and not only rely on sheets of formal paper.

The SVLK performance monitoring to management units in Jambi is effort to improve the quality

of the system especially in certification process, even though independent monitoring

organization has difficulty to analyse in detail due to limited access and information related to

certification of the management unit.

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PT Wirakarya Sakti

Clearing area outside its concession, PT. WKS certification is

questionable; the death of farmer activist potentially to drive

SVLK certificate suspension

The Indonesia Conservation Group (Kelompok Konservasi Indonesia) WARSI that based in Jambi

and WWF-Indonesia has joint investigation on October 2014 to May 2015 related to the Timber

Legality Assurance System (TLAS/SVLK) performance of PT. Wira Karya Sakti (WKS) from Sinar

Mas/Asia Pulp & Paper Group in Jambi Province.

The Management Unit, PT. Wirakarya Sakti, obtained their sustainable production forest

management (PHPL) certificate on October 2014 after several previous years having the Timber

Legality Certificate. Questions raised whether PT. WKS is eligible to get the S-PHPL when there

was brutal murder of agricultural union activist by the management unit’s security on February

2015.

As mentioned in the above table, PT. WKS has allegedly violated the existing law and regulation

in Indonesia, especially related to regulation on Timber Legality Verification System (TLAS/SVLK)

as entry point in this monitoring analysis.

PT. Wirakarya Sakti is main supplier for Asia Pulp & Paper (APP) and Sinar Mas Group for Jambi

and South Sumatra province. WKS is found clearing natural forest outside their licensed area.

The clearing is found by monitoring team on conservation área of Landai River that shall be

protected. The team also found acacia plant to be planted outside the concession and category C

mining likely operated also in the concession.

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Photo 1. There are houses built inside concession where the inhabitants also plant crops in PT

WKS management unit. It shows indicators of SVLK cannot be implemented by the management

unit despite the company obtain certificate. Location S 1°19'37.66" E 102°37'29.20". Photo taken

onl 25 January 2015 by WWF- Indonesia.

As mentioned above, the team found the management unit planted acacia trees in protected

forest of riparian in Landak River as the following pictures show the alleged breach took place.

Photo 2. Land clearing by PT WKS management unit in riparian of Landak River (Sungai Landai)

which the PHPL certificate could miss this breach. Location S 0⁰21’ 32,0 “ E 102⁰42’ 00,6“ .

Photo by KKI Warsi, 2015

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Before IUPHHK-HTI timber plantation license for PT WKS was signed by the Minister of Forestry, community of Lubuk Mandarsah village utilized the land previously concession of PT Sadarnila, a selective logging license holder for agriculture and plantation. The local community started cultivating the land near Bukit Rinting hill and Sungai Talang Pisang river since the last era of PT Sadarnila operation 2000. This statement is strengthened with old rubber tree and other tress of

fruits as well as such as durian fruit, lanzones (Lansium parasiticum /syn. Lansium domesticum) and petai tree (Parkia speciosa) inside the concession. Management unit of PT WKS, is indicated to conduct occupation outside area they usualy manage causing land grabbing. This practice has been ongoing for 7 years (undertake 1 time harvest and replanting). Right now the age of plantation of acacia mangium is 3 year old. The plantation is situated inside Production forest and some are inside Other Utilization Area (APL). It is estimated the size of land outside concession PT WKS manages here is 400 hectares. The location is S 1: 25’ 42,1“ E 102: 45’ 12.8“. Inside location there is Lubuk Mandarsah’s community’s plantation. According a former village head, it is alleged that PT WKS management unit involved in the land grabbing as the road maintenance is conducted by the company. A farmer who manages the area says that PT WKS started to work on the area in 2007.

Photo 3. A plot of land located outside PT WKS concession that is planted with acacia mangium in size of

400 hectares. The location of finding on S 1: 25’ 42,1“ E 102: 45’ 12,8“. There is also community crops inside the area belonging to Lubuk Mandarsah villagers. Photo by . KKI-Warsi, 2015.

Social conflicts

The monitoring team found that social conflicts in PT WKS concession is rampant and always

raise a new, even tough the management unit managed to pass for criteria related to conflict.

There is one case of murder of farmer union activist named Indra Pelani by management unit’s

security in February 2015 that should be critical question on the quality and integrity of the

certificate they obtained. Reports from NGOs based in Jambi mentioned that the murder is

planned thus raise the indication of human rights violation that should be enough justification for

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termination of S-PHPL certificate of the management unit in accordance to regulation as

commonly quoted on announcement letter of TLAS/SVLK certificate by certification body.

Photo 4. Indra Pelani during forestry monitoring training that funded by EU FLEGT program in

April 2014 in Jambi (left). Indra poses in his village, Lubuk Mandarsah, an área that has some

violent conflicts between community agains PT WKS management unit. Indra was killed brutally

by security guards of PT WKS in February 2015. The murder’s trial is happeing during the

preparation of this report. Photos by: KKI Warsi and WALHI Jambi.

Regarding to the murder case, there is letter requesting confirmation from PT. TUV by its head,

Dian. S. Soeminta, regarding reports from media on violence case that resulted with murder of a

community member in District 8 of PT. Wirakarya Sakti. PT. TUV requested clarification for this

critical incident. However, KKI Warsi and WWF-Indonesia could not have Access on the respond

and answer from management unit or its group.

Anti-violence and human right NGO, KontraS, stated: “During our investigation on 18-25 March,

we also found series of operation preparation and training material that is not common to be

given to URC team. They are not trained to be security unit, but militia (civilian, paramilitary), we

even found some indication that they were trained by former Army SpecialFforces (Kopassus

(source: Adrian Budi Sentosa, KontraS activist). Walhi Jambi concluded that the murder of Indra

Pelani is planned, thus question directed at the security policy of PT. WKS that is tend to be

excessive and beyond standard policy procedure.

For example, KontraS said in October 2014 there was establishment of URC Camp Sector Kilis near

to land occupied by community that caused privacy breach such as peeping women who are

ttaking a bath in the river as well as intimidative disturbance against community especially in

using river to fulfill their livelihood. “The River is situated on disputed land that make community

feels restricted in using it,” he said (Jurnal Sumatera, April 2015, KontraS call The Police to

Evaluate Security in PT. WKS; http://www.jurnalsumatra.com/2015/04/kontras-desak-kepolisian-

evaluasi-keamanan-pt-wks/).

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Based on findings from Walhi Jambi and other NGOs perspective the murder case of Indra Pelani

is not a common or pure crime, it was corporate crime that is rampant in the management unit

and clearly violate business and human rights principles that promoted by the United Nations. As

the victim is a human rights defender, it supports the allegedly big scenario in the murder case,

but it needs thorough investigation by the competent authority.

Map 1. Sekato Jaya farmers group claim their land is grabbed by PT WKS for 3,000 hectares, but verification

of the land size by Warsi concludes that the area they claim is only 1660 hectares. Map by KKI Warsi

Since its beginning, the eistence of PT. WKS in Jambi Province has caused a lot of problems

related to social conficts in natural resources management. In 2007, the community also halted

management unit’s tractor and eventually burned it down In Lubuk Mandarsah. Due to this

incident, 9 members of community are punished for 9 months in jail.

On Monday, 8 November 2010, two farmers were shot during demonstration to regain their

rights over land with total size of 7,224 hectares that was grabbed by the company. The shooting

was triggered by PT. WKS that involved security personnel (Police’s Mobile Brigade /Brimob) and

company’s security unit) and forcefully dismissed the rally. Until 2013, some community has

decided to take over the land of 1,500 hectares that has been managed by the company that

located in Bukit Rinting-Rinting of Dusun Pelayang Tebat of Lubuk Mandarsah Village.

Since then, intimidation and capturing farmers is continuously conducted by the management

unit. In addition, there are also facts found that disturbance and intimidation of the

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management unit’s security unit (URC) to community prior to the event of murder of Indra

Pelani. According to witness statement, there is also a plan to retrieve the land that being

disputed by the community of Lubuk Mandarsah Village.

There is no effort to solve the continuous boundary conflicts, since there are conflicts that has

not yet settled. Only one location, Senyerang, where conflict has been solved. The murder case

of Indra Pelani shows there is latent conflict potential within the management unit such as in

Lubuk Mandarsah Village. There is also high vulnerability of social conflict in several villages with

PT. WKS such as in Parit Bilal, Parit Unduh, Parit Galuh (District VI) and Delima Village (District I).

Land grabbing took place in Dusun Sungai Landai of Lubuk Mandarsah Village in December 2007

as PT WKS evicted villagers from their cultivation. The case has been solved by creating

partnership of boths sides, however it is not implemented further in the field. Conflict continues

to accumulate thus peak with the murder of Indra Pelani on 27 February 2015. There are social

conflicts that need to be settled and potential for outbreak between community in Jambi and

management unit (based on data from several NGOs in Jambi) shows field condition that might

be different from certification result.

In Parit Bilal Village, partnership in form of Plantation Forest Forest Partnership (Hutan Tanaman

Pola Kemitraan – KTPK) and community forest partnership (Hutan Rakyat Pola Kemitraan – HRPK)

has been agreed between management unit and community. However it has not been

implemented according to the agreement. In Dusun Jawa Timur of Sungai Beras Village there is

boundary conflict between community and concession of PT. WKS in 2014 where the community

has started planting in the area that claimed to be part of PT. WKS concession and the plant was

removed. PT. WKS then plan the area and the community retaliate by removing the plant.

The monitoring team questioned the decision to give a pass for PT. WKS in their PHPL certificate

due to many conflicts in the area that still latent and potential. There is also the issue of

fulfillment of FPIC in transparent and quantitative as many communities still have lack of initial

information. From investigation of monitoring team, early socialisation only conducted to village

elites. There is no FPIC in Parit Bilal Village as well as Sungai Beras of Lubuk Mandarsah Village.

PT. WKS should not be eligible to obtain PHPL certificate considering weakness in assessment

after independent monitoring team found gaps from certification result, such as

criteria/indicator/verifier related to areal and use rights certainty that found to still have violation

of land use by management unit outside of permited area.

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PT Lestari Asri Jaya --- Illegal logging rampant inside concession, even conservation area failed to be protected

PT. Lestari Asri Jaya has reserved area allocated by Minister of Forestry according to Decree No.

S.662/Menhut-VI/2009, dated 21 August 2009, regarding to order to fulfill the obligation for SP-1

IUPHHK-HTI (timber plantation license). According the the decree, the reserved area for IUPHHK-

HT license of PT. Lestari Asri Jaya, affiliated to Barito Pacific Group, is located in Tebo District of

Jambi Province with size of 61,495 hectares.

The monitoring team found natural forest clearing occurred in Tandikat River in location S

001003’13,1” E 102019’14,5”. The team first indicated that the clearing conducted by

management of PT. LAJ through its contractor PT. Akbar Mandiri. However, after further

investigation to government, the activity of clearing natural forest in Tandikat River is conducted

by HD (a.k.a Haji M) group. He is local entrepreneur from Teluk Kuali Village of Tebo Ulu Sub

District.

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Photo 5. Piles of logs following natural forest clearance by illegal loggers inside concession of PT Lestari Asri Jaya that allegedly conducted by a local public figure who ever worked with PT LAJ. The logs will be transported to sawn mill that belongs to the influenced man. Location at S 1°5'2.95" E 102°17'47.86". Photo taken on 22 January 2015 by WWF-Indonesia.

He was also contractor of PT. LAJ a couple years ago sourcing logs from natural forest as Annual

Work Plan (RKT) of PT. LAJ on Block Sumay designated. A reliable information says the illegal

logging conducted by HD Group has nothing to do with Pemayungan Village. The logs are

transported by six-wheel trucks owned by Optimis Group belongs to HD to several sawn mills in

Tebo District.

Photo 6. A sawn mill belonging to HD is operating to transport logs near Bukit Tigapuluh

landscape. They source logs from illegally natural forest clearing from PT LAJ concession.

Location: S 1°13'0.33" E 102°12'11.48" Photo by KKI Warsi on 11 May 2015

Regarding social conflict with community, the monitoring team found there is land claim by

community of Semambu on behalf of Semambu Village Farmers Group (Kelompok Tani Desa

Semambu) with total area of 3,000 ha on PT. LAJ Sumay Block. The claim is potential to trigger

conflict with local community as well as with other communities especially those in Sumay Block.

There is no information on the management of the farmers group. Beside claim from the

mentioned farmers group, there is also claim from community of Serau Serumpun who also have

potential conflict against the company.

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Map 2, Points of findings by joint monitoring team in visiting PT Lestari Asri Jaya management

unit that related to social conflict, forest fires, another use inside concession, and land clearing

outside concession. Map by KKI Warsi.

Joint monitoring team notes that there is social conflict that could be reference in analyzing the

history of conflicts at management unit level, namely the arrest of Baki, a villager, in 2010/2011.

The arrest is considered as method by the company to shut the community’s mouth up. Baki was

imprisoned since he was considered to provoke the community that resulted with riots.

However, the Baki’s case is considered as criminalization of community who make effort to

defend themselves from eviction by PT LAJ from their claimed land which provided with

evidences of community’s ownership in the area such as cemetary, etc.

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Photo 7. Encroachment by migrants in the concession of PT. LAJ of Sumay Block. Location E

10218’08,1” and S 00105’19,8”. Photo by KKI Warsi

Within the concession of PT. LAJ there are burnt trees and land that allegedly set by encroachers

from villages surrounding Sumay block as well as villagers from transmigration area of Rimbo

Bujang, South Sumatra migrants and North Sumatra migrants. According to the head of

Pamayungan Village, there have been 200 households stayed illegally along the corridor road

that split Block IV of PT. LAJ. The management unit does not perform their best to mitigate the

fires. The monitoring team saw no forest fire fighters coming to put off fires nor the existence of

security team to secure the encroached area.

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S 001: 04’ 40,4 E102: 17, 25,6 BT S 001: 10, 14,0 E 102: 26, 21,4 S 001: 10, 14,0 E 102: 26, 21,4

S 001: 10, 16,0 E 102: 26, 21,8 S 001: 10, 06,7 E 102: 27, 14,5 BT S 001: 11, 24, 4 E 102: 26, 27, 6

Photo 8. Several photos of forest and land fires on several spots within the

concession of PT. LAJ. The monitoring team indicates that ignorance by

the management might drive the cost for ecological destruction. Photo by

KKI Warsi .

The monitoring team finds that there is overlap of land use with mining concession permit of PT.

Kelola Tebo Energi with total area of 550 ha. The mining concession is situated within the

IUPHHK-HTI timber plantation concession of PT. LAJ and the mining permit is issued by the

government of Tebo District. As this report is prepared, the mining concession is at exploitation

phase. There is also another mining concession of PT. Sumber Mineral Raya 1 which also situated

within PT. LAJ concession that is undertaking exploration phase.

The monitoring team also found PT. LAJ is clearing land outside their concession. The land

clearing is found in Sumay Block on the adjacent of their concession with total area of 150 ha.

After the logs are taken, the land clearing continues where it is ready to be planted.

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Photo 9. Land clearing outside PT. LAJ concession by the management

unit at S 001: 11, 57,9 E 102: 26, 07,4. , Photo by KKI Warsi

Chain of custody of illegal logs

The monitoring team investigates chain of custody of logs felled from illegal logging starting from

the logs felled in PT. LAJ concession to Pemayungan Village of Sumay Sub District that

transported by using two PS 100 trucks without vehicle plate numbers (see Map 3). The team

concludes this move is intentional to cheat the authority by using less identity of trucks. The

monitoring team found these trucks heading to the gate of Sungai Karang Village and crossing the

corridor road of PT. WKS (also known as APP logging corridor) with the route passing through the

security post of PT. Wanamukti Wisesa, a rubber plantation concession belongs to Barito Pacific

Group, similar to PT LAJ’s. The security post is used by security team of PT. LAJ and the

monitoring team found the security team taking “illegal fee” from driver of PS 100 trucks

transporting the illegal logs.

After passing through the security post of PT. Wanamukti Wisesa used by security team of PT.

LAJ, the trucks that transport logs from illegal logging is passing the road of former PT. IFA and

crossing Batanghari River by using ferry managed by Cooperatives (Koperasi) KBK of Balai Rajo

village. The trucks then pass Balai Rajo village to junction of police precinct at VII Koto Ilir sub-

district and pass through the sub-district Head’s office to t-junction towards Rimbo Bujang.

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Map 3. Map shows route of trucks transporting logs from illegal logging site

inside PT LAJ concession which cross APP logging corridor to trader in Rimbo

Bujang, Tebo District.

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From T-junction to the right towards Unit 1 of Rimbo Bujang sub-district where one PS 100 truck

goes right towards SP9 area of Unit 1 Rimbo Bujang where another PS 100 blue-painted back

truck heads to Unit 2 Rimbo Bujang market to a store, Neysa Gorden. The store is the end route

for illegal logs that ready to be sold.

Based on field investigation in Neysa Gorden Store, the shop obtained its logs from Pemayungan

Village of Sumay sub-district and it is indicated that the logs come from natural forest harvested

in the concession of PT. LAJ and the surrounding landscape of Bukit Tigapuluh National Park and

within the national park.

Photo 11 – Logs that have just been harvested in PT. LAJ of Sumay Block. Location S 1°9'35.09" E102°26'35.82" di Afdeling I Endelang blok 4 Sumay; Photo by KKI Warsi, 11 May 2015

The monitoring team also found illegal settlement in APP corridor within the concession of PT.

LAJ of Block 4, in Pemayungan Village area. Based on interview with Head of Pemayungan

Village, the illegal settlement is inhabited by dwellers who develop settlement along APP corridor

with total 200 household coming from many different places. They have come to the area since

2008. The settlers are taking benefit of the construction of APP corridor road, as the

infrastructure provides them easy access to land clearing and settlement development.

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Encroachment in the landscape is rampant as the practice happens from Menggatal River until

Bukit Tigapuluh National Park. The encroachment is encouraged due to rising number of sawn

mills that process timber from natural forest in the southern part of Bukit Tigapuluh National

Park. People are free to clear forest along with Menggatal River and float the logs to the back

of Belimbing Suo-suo Market or further flow downstream to Muara Sekalo Bridge. From this

place logs are then transported to sawn mills by using several trucks.

Photo 12. Area designated for Wildlife Protection Zone (Daerah Perlindungan Satwa

Liar/DPSL) based on land use of timber plantation license of PT. Lestari Asri Jaya, that

located in block 4 Sumay, Tandikat River, Pemayungan village. Location: S 1°3'31.46" E

102°18'49.48". Photo taken on 22 January 2015 by WWF-Indonesia.

Amdal controversy

While the management unit has obtained Amdal (Environmental Impact Assessment), the history

PT. LAJ Amdal needs to be reminded as to improve the TLAS/SVLK requirement. Lack of key

stakeholder consultation for the impact assessment including absence of NGOs such as KKI Warsi

in Amdal consultation and also the indication of PT. LAJ’s Amdal that likely copy the Amdal of PT.

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WKS needs to be clarified by management unit. PT. LAJ’s Amdal is not consulted to stakeholders

especially community. There is a report of community’s signatures are forged to legitimate the

consultation. The report was submitted to National Police which then delegate the case to local

police. The case cannot be concluded as key witnesses refused to stand as witness. Even with

objections as mentioned above, the Amdal is still approved.

Important notes on PT. LAJ’s Amdal approval process:

1. On 3 September 2009, Socialisation of Environmental Impact Analysis of PT. Lestari Asri Jaya in Tebo District was conducted at Meeting Room of Tebo District Secretary – Amdal Document Approval from 4 villages was forged by Tebo District Government. The Amdal document is also identical with the one issued by PT. WKS in 2004.

2. Continuation of Amdal discussion in Jambi Province Bappedalda Office 3. On 30 May 2010, the Minister of Forestry Decree No. SK.141/Menhut-II/2010 was issued for

the concession of PT LAJ. The decree has caused 61,495 hectares natural forest in Tebo District loss and Sumatran tiger and Sumatran elephant habitats are threatened despite NGOs issued their concerns to protect the area at early stage in 2009. RECOMMENDATION: Walhi and WWF call on: 1. Encourage government and TLAS/SVLK stakeholders to review certicates given to PT.

WKS and PT. LAJ as there are gaps and findings showing lack of credibility of the certificate given to both management unit.

2. The Minister of Environment and Forestry shall evaluate permit given to PT. WKS and PT. LAJ and demand for their responsibility of findings in the report by monitoring team.

3. There must be strict and integrated supervision by the Government at some levels: district, province and central government against two management units relating to review license, recommendation and certificate to both PT WKS and PT LAJ. If breaches incur, there should be stern measure taken.

END