Strengthening Legal Framework on Strengthening Legal Framework on

Oil Palm Plantation in Indonesia:Oil Palm Plantation in Indonesia:Preliminary resultsPreliminary results

Suer SuryadiNoviar AndayaniNick Brickle

Wildlife Conservation Society Indonesia program

The earth has resources to meet The earth has resources to meet everybody’s need but not anybody’s greedeverybody’s need but not anybody’s greed

(Mahatma Gandhi)(Mahatma Gandhi)(Mahatma Gandhi)(Mahatma Gandhi)

non forest area

Forest area

Gunung LeuserNational Park

Just backgroundJust background

�� Growing oil palm plantationGrowing oil palm plantation

�� Demand for sustainable palm oilDemand for sustainable palm oil

�� Balancing economy, ecology, sociologyBalancing economy, ecology, sociology

�� Violation of regulations can occur in every step Violation of regulations can occur in every step of plantation developmentof plantation development

�� Location permit in protection areaLocation permit in protection area

�� Planting without HGU, without forest release licensePlanting without HGU, without forest release license

�� forest clearing without timber exploitation licenseforest clearing without timber exploitation license

�� No progress report along the processNo progress report along the process

�� Minimal monitoring and control within agency Minimal monitoring and control within agency and interand inter--agenciesagencies

Previous studyPrevious study

�� Oil Palm, Biodiversity & Indonesian LawOil Palm, Biodiversity & Indonesian Law

�� Spatial PlanningSpatial Planning

�� Finance Finance

Policy BarriersPolicy Barriers�� Policy BarriersPolicy Barriers

ObjectivesObjectives

�� To identify key issues in targeted sectors To identify key issues in targeted sectors not fully regulated by not fully regulated by GoIGoI

�� To identify implementation barriers in To identify implementation barriers in targeted sectorstargeted sectorstargeted sectorstargeted sectors

�� To identify potential conflicts among To identify potential conflicts among regulations in targeted sectorsregulations in targeted sectors

�� To provide policy recommendations as To provide policy recommendations as well as academic draft/legal draftwell as academic draft/legal draft

Regulations Regulations for Oil Palm Plantationfor Oil Palm Plantation

�� In APL/nonIn APL/non--forestland/Other Purpose areaforestland/Other Purpose area

�� Basic Agrarian LawBasic Agrarian Law

�� Plantation LawPlantation Law

�� Environmental LawEnvironmental Law

�� In National ForestlandIn National Forestland

�� Forestry LawForestry Law

�� Basic Agrarian LawBasic Agrarian Law

�� Plantation LawPlantation Law

�� Environmental LawEnvironmental Law

�� Others: Company, Investment, Labor, Tax, etcOthers: Company, Investment, Labor, Tax, etc

SectoralSectoral legislationslegislations

�� Spatial PlanningSpatial Planning

�� Act: 1Act: 1 GR: 2 GR: 2 MR: 2 MR: 2

�� Agrarian/LandAgrarian/Land

�� Act: 1Act: 1 GR: 3GR: 3 MR: 7MR: 7

ForestryForestry�� ForestryForestry

�� Act: 2Act: 2 GR: 5GR: 5 MR: 11MR: 11

�� AgricultureAgriculture

�� Act: 2Act: 2 GR: 2GR: 2 MR: 4MR: 4

�� EnvironmentEnvironment

�� Act: 1Act: 1 GR: 3GR: 3 MR: 8MR: 8

Forestry mapForestry map

�� MapMap: Forestry, National Land Agency, Land: Forestry, National Land Agency, Land--use use map (regional spatial plan). 4map (regional spatial plan). 4--16 million ha 16 million ha differentdifferent

�� Unclear forest boundaries + hunger of landUnclear forest boundaries + hunger of land

�� Urgently need reliable single forest map for all Urgently need reliable single forest map for all �� Urgently need reliable single forest map for all Urgently need reliable single forest map for all stakeholdersstakeholders

�� Clean and clear mechanism to designate forest Clean and clear mechanism to designate forest use, boundaries, conflict resolution, forestland use, boundaries, conflict resolution, forestland swap, forest release (relinquishment)swap, forest release (relinquishment)

Regional spatial planningRegional spatial planning

�� Provincial/District Regulation, supervise by M Public Provincial/District Regulation, supervise by M Public Works and Works and CoordCoord Body for National Spatial PlanningBody for National Spatial Planning

�� Act 26/2007: All Provincial and District Spatial Plan must Act 26/2007: All Provincial and District Spatial Plan must be completed in 2010be completed in 2010

�� Dec 2010: Dec 2010: �� Dec 2010: Dec 2010:

�� 20 out of 33 provinces have been approved by M Public Works. 20 out of 33 provinces have been approved by M Public Works. 7 out of 20 provinces have issued Provincial Regulation7 out of 20 provinces have issued Provincial Regulation

�� 22 out of 398 districts have been approved by M Public Works, 22 out of 398 districts have been approved by M Public Works, 143 are being reviewed, 233 are being revised143 are being reviewed, 233 are being revised

�� Reason: moment to change the status of forestland into Reason: moment to change the status of forestland into nonnon--forestland. Need approval from M Forestry forestland. Need approval from M Forestry

HCV HCV

by Company or Government?by Company or Government?�� CompanyCompany

�� Encouraged by RSPO P&C. ISPO? Encouraged by RSPO P&C. ISPO?

�� For certified RSPO members, big companyFor certified RSPO members, big company

�� Cost without Incentives from market and government Cost without Incentives from market and government

�� Potentially encroached? Idle land? Conflict 2 GR of Potentially encroached? Idle land? Conflict 2 GR of agrarian law.agrarian law.agrarian law.agrarian law.

�� GovernmentGovernment

�� to protect hydrological function. PD 32/1990to protect hydrological function. PD 32/1990

�� APL << forestland (conservation & protection forest)APL << forestland (conservation & protection forest)

�� District/Province need income generation District/Province need income generation

�� depend on leadership. Forest is barrier for developmentdepend on leadership. Forest is barrier for development

�� Third party’s involvement? RSPO, NGOs/CSR?Third party’s involvement? RSPO, NGOs/CSR?

HCV in IndonesiaHCV in Indonesia

�� No specific regulations for HCV & guideline from No specific regulations for HCV & guideline from GoIGoI

�� General rule available in Act 5/1990, Act General rule available in Act 5/1990, Act 32/2009, PD 32/1990 to protect species, 32/2009, PD 32/1990 to protect species, habitat/ecosystem and hydrological function habitat/ecosystem and hydrological function E.g. E.g.

100 m from river banks100 m from river banks. . ImplementationImplementation??100 m from river banks100 m from river banks. . ImplementationImplementation??

�� Agrarian law not support HCVAgrarian law not support HCV

�� HCV in RSP as strategic area should not be HCV in RSP as strategic area should not be allocated for other purposes.allocated for other purposes.

�� HCV has been mentioned in the draft of new HCV has been mentioned in the draft of new conservation law to replace Act 5/1990conservation law to replace Act 5/1990

ISPOISPO

�� M Agriculture Decree No. 19/2011M Agriculture Decree No. 19/2011

�� Mandatory, commitment to sustainable, emission Mandatory, commitment to sustainable, emission reductionreduction

�� No ISPO certificate = not comply to RSPO P2.No ISPO certificate = not comply to RSPO P2.

�� Try out in 20 companies in 2011, start 2012Try out in 20 companies in 2011, start 2012--2014 for all 2014 for all companies & smallholderscompanies & smallholderscompanies & smallholderscompanies & smallholders

�� G to G relationship. Approach foreign countriesG to G relationship. Approach foreign countries

�� Certified by ISPO CommissionCertified by ISPO Commission

�� Export to China India, sustainable product version ISPOExport to China India, sustainable product version ISPO

�� What happen if company/small holders don’t get ISPO What happen if company/small holders don’t get ISPO certificate?certificate?

�� Transparent? Check this out Transparent? Check this out www.ispowww.ispo--org.or.idorg.or.id

Org structure of ISPOC

ISPOC

Secretariat

Verification Team

Secretariat

Administration Technical Promotion Conflict Resolution

ISPOISPO--RSPORSPOISPO, 7 principles, 29 Criteria RSPO, 8 principles, 39 criteria

Mandatory, M. Agriculture No.19/2011 Voluntarily

P1. Licensing & Management System: 7 criteria

P1. Commitment to transparency: 2 criteria

P2. Implementation of guideline onagronomical practices and oil palm processing: 2 criteria

P2. Compliance with applicable laws & regulations: 3 criteria

P3. Environmental Management & P3. Commitment to long-term economic & P3. Environmental Management & Monitoring: 10 criteria

P3. Commitment to long-term economic & financial viability: 1 criterion

P4. Responsibility to workers: 5 criteria P4. Use best practices: 8 critera

P5. Social & communities responsibility: 2 criteria

P5. Environmental responsibility & conservation: 6 criteria

P6. Empowerment of communities’ economic activities: 2 criteria

P6. Responsible consideration to employees & communities: 11 criteria

P7. Sustainable business improvement: 1 criterion

P7. Responsible development of new plantings: 7 criteria

P8. Commitment to continues improvement: 1 criterion

PROPER 2010PROPER 2010

�� M Environment program, voluntarily, companies’ M Environment program, voluntarily, companies’ rank based on environment management rank based on environment management performanceperformance

�� Apply Environmental Law No. 32/2009Apply Environmental Law No. 32/2009

�� GoldGold (environmental excellence)(environmental excellence), , GreenGreen (beyond compliance)(beyond compliance), , �� GoldGold (environmental excellence)(environmental excellence), , GreenGreen (beyond compliance)(beyond compliance), , BlueBlue (comply with regulations)(comply with regulations), , RedRed, , BlackBlack

�� Total 690 companies, 85 oil palm plantationsTotal 690 companies, 85 oil palm plantations

�� 1 Green, 59 Blue, 17 Red, 8 Black1 Green, 59 Blue, 17 Red, 8 Black

�� Acknowledged n recognized by market? At creating Acknowledged n recognized by market? At creating public image in Indonesiapublic image in Indonesia

Suspension of new permits for primary Suspension of new permits for primary

forest and forest and peatlandpeatland conversionconversion

�� Two versions of draft: REDD+ Taskforce & Two versions of draft: REDD+ Taskforce & CoordCoord. Ministry of Economics/M Forestry. Ministry of Economics/M Forestry

�� It’s been presented to vice president on It’s been presented to vice president on 25 March 201125 March 201125 March 201125 March 2011

�� Agreed by M Environment, M Forestry, M Agreed by M Environment, M Forestry, M of Land/BPN & of Land/BPN & CoordCoord M EconomicsM Economics

�� Secretary of CabinetSecretary of Cabinet

�� GAPKI/APKASINDO oppose moratoriumGAPKI/APKASINDO oppose moratorium

Two draftsTwo drafts

Issues CM for Economy & Forestry REDD Taskforce

Area Primary forest & peatland Primary & secondary forest, peatland

Target Forestry, Home Affairs, BPN, UKP4, Governors/Districts

Forestry, Energy & Mining, BPN, REDD TF, Governors/Districts

Where Conservation forest, protectionforest, production forest and

Forestland and APLforest, production forest and APL

Sectors All sectors except geothermal, oil & gas

Logging, plantation, mining

Include or exclude

Exclude: Extension for existing concession, approved forest relinquishment; Vital project: geothermal, oil & gas, electricity, rice & sugarcane

Include: Review existing concessions & consider extending time frame

Time Two years Two years

InstructionsInstructions�� M ForestryM Forestry::

�� Table and map of primary forest and Table and map of primary forest and peatlandpeatlandwithin 1 month, update every six monthswithin 1 month, update every six months

�� Suspend any license in the above targeted areasSuspend any license in the above targeted areas

�� BPNBPNSuspend any HGU/Cultivation Use Rights in forested Suspend any HGU/Cultivation Use Rights in forested �� Suspend any HGU/Cultivation Use Rights in forested Suspend any HGU/Cultivation Use Rights in forested APL, in targeted areasAPL, in targeted areas

�� Governors & District’s HeadGovernors & District’s Head�� Suspend location permit in targeted areasSuspend location permit in targeted areas

�� M Home AffairsM Home Affairs: : Oversight Governors/District’s HeadsOversight Governors/District’s Heads

�� UKP4UKP4: : MonitoringMonitoring

Suspension new permits for primary Suspension new permits for primary

forest and forest and peatlandpeatland conversionconversion

�� Temporarily but entry point to develop clean and Temporarily but entry point to develop clean and clear forest mapclear forest map

�� Conversion forest: Forest area into APL/non forest Conversion forest: Forest area into APL/non forest area. area.

�� Degraded land ≠ not productive production forest nor Degraded land ≠ not productive production forest nor �� Degraded land ≠ not productive production forest nor Degraded land ≠ not productive production forest nor secondary forestsecondary forest

�� Plantation concession Plantation concession vsvs conservation concessionconservation concession

�� PeatlandPeatland. All type of . All type of peatlandpeatland�� Pres.DecreePres.Decree No. 32/1990, thick > 3 mNo. 32/1990, thick > 3 m

�� MD Agriculture No. 14/2009, thick > 3mMD Agriculture No. 14/2009, thick > 3m

Preliminary conclusionPreliminary conclusion

�� Plantation and conservation are important, Plantation and conservation are important, but different languagebut different language

�� Legal problem create social problemLegal problem create social problem

�� Comfortable zoneComfortable zone

Shoot the right targetShoot the right target�� Shoot the right targetShoot the right target

Thanks to:* All participants for input n suggestion* Zoological Society of London* Wilmar International Ltd.* Biodiversity & Agricultural Commodities Program* Biodiversity & Agricultural Commodities Program

See you soon