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Activists howl at palm oil bill

Jakarta Post - October 17, 2016

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Hans Nicholas Jong, Jakarta – With Indonesia facing land and forest fires every year that are mostly man-made disasters that have degraded the health of its citizens as well as that of its neighbors, the government has vowed to improve the sustainability of its agroforestry sector, particularly the palm oil industry.

The government plans to impose a moratorium on the issuance of new permits for oil palm plantations and to ban oil palm expansion through land clearing, one of the main causes of land and forest fires.

According to data from the Indonesian Forum for the Environment (Walhi), from 439 companies involved in the 2015 forest fires, 308 of them were palm oil companies.

But all of these plans may go out the window if the House of Representatives and the government approve the contentious palm oil bill, which critics say contains provisions that protect business at the expense of the environment.

"We appreciate the President's instruction to impose the moratorium, but this bill contradicts that moratorium because it regulates how to expand the palm oil industry," Walhi legal and research department head Zenzi Suhadi said recently.

The bill tries to mislead the public by saying that oil palm trees are native to Indonesia, even though these trees actually come from Africa, Zenzi said.

Zenzi alleges that the bill will justify the expansion of the palm oil industry by making this false claim. "[It] shows that the drafting process of the bill is loaded with bad intentions. What's the purpose of manipulating information [on the origin of palm oil] other than to force the bill through?" he said.

Walhi highlights other contentious articles that might have been specifically designed to protect the interests of business. Article 7 Item 2 of the bill, for example, says that palm oil businesses include those involved in land clearing, seeding, fertilization, water and peatland management, pest control, harvest and post-harvest.

Meanwhile, Article 9 says that palm oil businesses can be established in plantation areas that have not been planted with oil palm trees after acquiring land and plantation permits.

"[The companies] can protect themselves [from prosecution] by invoking the bill as it regulates a company's responsibilities, including in regards to land clearing. This bill contradicts at least four laws, which are laws on environmental protection, forestry, spatial planning and agrarian practices," Zenzi said.

By Walhi's estimate, if the House passes the bill, oil palm plantations may occupy more than 26 million hectares of land by 2025, up from the current figure of 15 million hectares.

Another contentious article is Article 30, which stipulates that the government must assist palm oil businesses by reducing income taxes, relaxing import excises and reducing land and building taxes.

"By contrast, the bill marginalizes and isolates local people. The articles are there to help companies while ensuring that people can't say no to companies who want their land. This bill also establishes its own definition of land rights and the rights of indigenous people."

The Indonesian Palm Oil Producers Association (GAPKI) has dismissed Zenzi's claim that the bill only promotes the expansion of the palm oil industry while discounting issues of sustainability.

"In the legislative process, all stakeholders are invited by the House to give their advice. So, the voices of businesspeople, farmers, the public and NGOs will be accommodated in the bill," the association's spokesman, Tofan Mahdi, said.

GAPKI argued that the bill was important to support the country's palm oil industry, a major part of Indonesia's economy. Indonesia is the world's largest producer of palm oil.

The country's palm oil industry is driven by global demand and investment by Malaysian and Singaporean companies, among others. In 2014, Indonesia supplied about 52 percent of the world's palm oil, which is used in a wide range of products from potato chips and cosmetics to cooking oil and toothpaste.

"The bill will become a milestone for the future of the palm oil industry in Indonesia," he said.

Tofan added that the bill, which is included in the House's 2016 National Legislation Program (Prolegnas), aimed to turn the palm oil industry into a strategic national commodity.

"This will become a basis of commitment for all stakeholders, including the government, to protect and maintain the palm oil industry."

Source: http://www.thejakartapost.com/news/2016/10/17/activists-howl-palm-oil-bill.html.