PT PHP conflict, Sumatra

Description

Oil palm is today the fastest growing monoculture in the tropics. Indonesia is the world's largest producer. The country has witnessed a massive conversion of customary (adat) land to oil palm (and fast-wood) plantations. Between 1967 and 2007, oil palm monocultures have increased about 50 times and the government is planning to expand the area under plantation.

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Basic Data
NamePT PHP conflict, Sumatra
CountryIndonesia
ProvinceSumatra
SiteWest Pasaman District, West province (Sumatra)
Accuracy of LocationMEDIUM regional level
Source of Conflict
Type of Conflict (1st level)Biomass and Land Conflicts (Forests, Agriculture and Livestock Management)
Type of Conflict (2nd level)Land acquisition conflicts
Plantation conflicts (incl. Pulp
Specific CommoditiesPalm oil
Project Details and Actors
Project DetailsCompany Profile: Established in 1992, PT PHP was initially a domestic investment enterprise with shares owned by its founders. In 1999, the company’s legal status was changed to Foreign Investment Enterprise (PMA) and its shareholders became foreign entities: Keyflow Limited (British Virgin Islands), Caffrey International Limited (UK), HPR Investment Limited (British Virgin Islands), Banoto Investment Limited (British Virgin Islands), Wilmar Plantation Limited (British Virgin Islands) and PT Kartika Prima Vegetable. The latter’s shares were subsequently sold to PT Karya Prajona Nelayan. [1]

PT PHP and associated companies hold oil palm plantations and integrated Crude Palm Oil (CPO) and palm kernel oil processing units. Its production capacity is 135,250 tonnes of Fresh Fruit Bunch (FFB) a year, 28,600 tonnes of CPO a year and 6,900 tonnes of palm kernel oil a year. 25% (or 7,150 tonnes a year) of CPO produced by the company goes to the domestic market and 75% (or 21,450 tonnes a year) to the international market. The percentage breakdown is the same for palm oil kernel, with figures of 1,725 tonnes

a year and 5,175 tonnes a year respectively. The total investment of the company is of 42,902,000,000 rupiah (or 4,457,350 USD). The capital source derives from loans (36,773,000,000 rupiah or 3,820,571 USD) and from the company’s own capital (6,129,000,000 rupiah or 636,779 USD). The area of the company plantation in Pasaman district is of 5,450 ha. [1]
Project Area (in hectares)5,450
Type of PopulationRural
Start Date1997
Company Names or State EnterprisesPT Permata Hijau Pasaman (PHP) - Wilmar Group
Wilmar International from Singapore
International and Financial InstitutionsRound Table on Sustainable Palm Oil (RSPO) from Malaysia
Environmental justice organisations and other supportersOne local NGO (at least)
The Conflict and the Mobilization
Intensity of Conflict (at highest level)HIGH (widespread, mass mobilization, violence, arrests, etc...)
When did the mobilization beginIn REACTION to the implementation (during construction or operation)
Groups MobilizingFarmers
Indigenous groups or traditional communities
Women
Kapa and Sasak communities
Forms of MobilizationStreet protest/marches
Occupation of buildings/public spaces
Protester "captured" a police station in order to release anti-palm-oil activists.
Impacts
Environmental ImpactsPotential: Deforestation and loss of vegetation cover
Socio-economic ImpactsVisible: Land dispossession
Potential: Loss of livelihood
Outcome
Project StatusIn operation
Pathways for conflict outcome / responseCriminalization of activists
Repression
Violent targeting of activists
Do you consider this as a success?No
Why? Explain briefly.The movement benefited from no longer-term successes.
Sources and Materials
References

Colchester, M., N. Jiwan, Andiko, M. Sirait, A. Yunan Firdaus, A. Surambo and H. Pane, 2006. Promised land – palm oil and land acquisition in Indonesia. Moreton-in-Marsh: Forest Peoples Programme; Bogor: SawitWatch.
[click to view]

Noor, R., and R. Syumanda, 2006. Social conflict and environmental disaster: a report on Asia Pulp and Paper’s operations in Sumatra, Indonesia. Montevideo: World Rainforest Movement.
[click to view]

Zakaria, A., C. Theile and L. Khaimur, 2007. Policy, practice, pride and prejudice: review of legal, environmental and social practices of oil palm plantation companies of the Wilmar Group in Sambas District, West Kalimantan (Indonesia). Amsterdam: Friends of the Earth Netherlands.
[click to view]

Buyers and Financiers of the Wilmar Group
[click to view]

[1] Conflict or Consent: PT Permata Hijau Pasaman I and the Kapa and 4 Sasak peoples of Pasaman Barat, West Sumatr
[click to view]

Meta Information
ContributorJ.-F. Gerber
Last update06/05/2014
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