PT Wilmar Sambas Plantation conflict, Kalimantan, Indonesia

<div class="horipane"><div class="title active">Description</div><div class="content"><table class="table"><tbody><tr><td class="fld"></td><td class="columns"><div class="less">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.</div><a class="seemore" href="#">See more...</a><div class="more" style="display:none">The Wilmar group is one of the largest oil palm companies in the world and handles about a quarter of global palm oil output. One of the multiple companies under its management is PT Wilmar Sambas Plantation (PT WSP) (95% owned by the family of Wilmar’s CEO). In 2005, PT WSP started clearing land in Senujuh without the knowledge or permission of the community, and without yet having obtained a legal permit. The company destroyed rubber agro-forests belonging to the community . The clearance continued despite community protests to local leaders. In 2006, villagers stopped thirty company workers, and confiscated an excavator and five chainsaws used by the workers to clear the community forest. Together with members of the local parliament and the Forestry Department, village officials wrote a letter to the company asking it to remove its workers and equipment from Senujuh. The company manager apologised, and the communities returned the land clearing equipment. The company also paid a fine determined by customary law [2]. However, further land clearing reportedly took place. In 2006, a complaint against PT WSP was lodged by local NGOs alerted by villagers for the burning of land for plantation development. To encourage the district attorney to pursue the case, local students from Sambas staged a peaceful demonstration in support of the NGOs. In response, the prosecutor’s office replied that it was committed to taking the case to the highest level if the sentence of the district court in Singakawang was deemed too light. In 2007, 516 villagers signed a public statement asking for all oil palm expansion to be stopped in their villages and expressing disappointment that their village head had given consent without consulting the community.<br/><br/><a class="seeless" href="#">(See less)</a></div></td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Basic Data</div><div class="content"><table class="table"><tbody><tr><td class="fld">Name</td><td>PT Wilmar Sambas Plantation conflict, Kalimantan, Indonesia</td></tr><tr><td class="fld">Country</td><td><a href="/country/indonesia">Indonesia</a></td></tr><tr><td class="fld">Province</td><td>West Kalimantan</td></tr><tr><td class="fld">Site</td><td>Village of Senujuh, sub-district of Sejangkung, Sambas district</td></tr><tr><td class="fld">Accuracy of Location</td><td>HIGH local level</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Source of Conflict</div><div class="content"><table class="table"><tbody><tr><td class="fld">Type of Conflict (1st level)</td><td>Biomass and Land Conflicts (Forests, Agriculture and Livestock Management)</td></tr><tr><td class="fld">Type of Conflict (2nd level)</td><td>Plantation conflicts (incl. Pulp<br /> Land acquisition conflicts</td></tr><tr><td class="fld">Specific Commodities</td><td><a href='/commodity/palm-oil'>Palm oil</a></td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Project Details and Actors</div><div class="content"><table class="table"><tbody><tr><td class="fld">Project Details</td><td class="columns"><div class="less">In 2011 and 2012, Newsweek ranked Wilmar as the world’s least sustainable company in terms of environmental performance </div><a class="seemore" href="#">See more...</a><div class="more" style="display:none">(last among the 500 largest publicly traded companies in the world).<br/><br/>Wilmar is controlled by Indonesian and Singaporean businessmen, with representation on its board by Archer Daniels Midland (ADM) one of the world’s top commodities trading companies. ADM and Wilmar have formed a strategic partnership, including tropical oils refining in Europe (sold and marketed through Olenex. C.V. based in Switzerland). Wilmar does not state in its public reports where it sells its biodiesel, but it is clear from recent anti-dumping measures taken by the EU that a substantial amount of Wilmar’s production is sold in Europe.<br/><br/>Research by Friends of the Earth International has highlighted the US and European financiers of Wilmar, including shareholders and banks that make loans to the company. These include: UK high-street banks Barclays and HSBC, PNB Parisbas and Credit Agricole (France), Deutsche Bank (Germany), APB and Rabobank (Netherlands) and Bank of America, J Morgan, Goldman Sachs, Citigroup and others in the US, as well as Canadian, Swiss and Belgian institutions.<br/><br/>FoE also notes that the Norwegian Pension Fund (GPFG) withdrew its investment in Wilmar in 2012, along with 22 other palm oil companies, because it believed those companies were producing palm oil unsustainably and causing seriously adverse human rights impacts. [3][4]<br/><br/><a class="seeless" href="#">(See less)</a></div></td></tr><tr><td class="fld">Type of Population</td><td>Rural</td></tr><tr><td class="fld">Start Date</td><td>2006</td></tr><tr><td class="fld">Company Names or State Enterprises</td><td><a href='/company/pt-wilmar-sambas-plantation-pt-wsp'> PT Wilmar Sambas Plantation (PT WSP)</a> - <small>Wilmar Group</small><br /><a href='/company/wilmar-international'>Wilmar International</a> from <a href='/country-of-company/singapore'><small>Singapore</small></a></td></tr><tr><td class="fld">International and Financial Institutions</td><td><a href='/institution/compliance-advisor-ombudsman'>Compliance Advisor Ombudsman <small>(CAO)</small></a><br /><a href='/institution/round-table-on-sustainable-palm-oil'>Round Table on Sustainable Palm Oil <small>(RSPO)</small></a> from <a href='/country-of-institution/malaysia'><small>Malaysia</small></a><br /><a href='/institution/international-fund-for-agricultural-development'>International Fund for Agricultural Development <small>(IFAD)</small></a><br /><a href='/institution/corporacion-financiera-internacional'>Corporación financiera internacional,</a> - <small>The IFC has provided numerous guarantees and loans to Wilmar</small></td></tr><tr><td class="fld">Environmental justice organisations and other supporters</td><td>Lembaga Gemawan (a local EJO), Indonesian Environmental Forum (WALHI)</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">The Conflict and the Mobilization</div><div class="content"><table class="table"><tbody><tr><td class="fld">Intensity of Conflict (at highest level)</td><td>MEDIUM (street protests, visible mobilization)</td></tr><tr><td class="fld">When did the mobilization begin</td><td>In REACTION to the implementation (during construction or operation)</td></tr><tr><td class="fld">Groups Mobilizing</td><td>Farmers<br /> International ejos<br /> Local ejos<br /> Local government/political parties<br /> Students</td></tr><tr><td class="fld">Forms of Mobilization</td><td>Creation of alternative reports/knowledge<br /> Involvement of national and international NGOs<br /> Lawsuits, court cases, judicial activism<br /> Official complaint letters and petitions<br /> Shareholder/financial activism.<br /> Street protest/marches<br /> Property damage/arson<br /> - villagers stopped thirty company workers, and confiscated an excavator and five chainsaws used by the workers to clear the community forest.</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Impacts</div><div class="content"><table class="table"><tbody><tr><td class="fld">Environmental Impacts</td><td><strong>Visible: </strong>Deforestation and loss of vegetation cover, Other Environmental impacts</td></tr><tr><td class="fld">Other</td><td>The company cleared local rubber agro-forests.</td></tr><tr><td class="fld">Socio-economic Impacts</td><td><strong>Visible: </strong>Land dispossession<br /><strong>Potential: </strong>Loss of livelihood</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Outcome</div><div class="content"><table class="table"><tbody><tr><td class="fld">Project Status</td><td>Unknown</td></tr><tr><td class="fld">Pathways for conflict outcome / response</td><td>Compensation<br /> Court decision (undecided)<br /> Application of existing regulations</td></tr><tr><td class="fld">Development of Alternatives</td><td>In 2007, 516 villagers signed a public statement asking for all oil palm expansion to be stopped in their villages and expressing disappointment that their village head had given consent without consulting the community.</td></tr><tr><td class="fld">Do you consider this as a success?</td><td>Not Sure</td></tr><tr><td class="fld">Why? Explain briefly.</td><td>Recent data about the court case needed!</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Sources and Materials</div><div class="content"><table class="table"><tbody><tr><td class="fld">References</td><td><table><tr><td><p> [1] Marti, S., 2008. Losing ground – the human rights impacts of oil palm plantation expansion in Indonesia. Friends of the Earth, London; SawitWatch, Bogor.<br/><a class="refanch small" href="" target="_blank">[click to view]</a></p></td></tr><tr><td><p> [3] Wilmar International and its financiers<br/><a class="refanch small" href="" target="_blank">[click to view]</a></p></td></tr><tr><td><p> Palm Oil land disputes in West-Kalimantan: the Politics of scale in [2] [2] Processes of DisPute resolution An empirical research on dispute resolution strategies in Sambas district. Masters Thesis by Elisabeth Vos<br/><a class="refanch small" href="" target="_blank">[click to view]</a></p></td></tr><tr><td><p> Policy, practice, pride and prejudice Review of legal, environmental and social practices of oil palm plantation companies <br />of the Wilmar Group in Sambas District, West Kalimantan (Indonesia). A joint publication of: Milieudefensie (Friends of <br />the Earth Netherlands) Netherlands, Lembaga Gemawan Indonesia, KONTAK Rakyat Borneo Indonesia<br/><a class="refanch small" href="file:///Users/apple/Downloads/Wilmar_Palm_Oil_Environmental_Social_Impact.pdf" target="_blank">[click to view]</a></p></td></tr></table></td></tr><tr><td class="fld">Links</td><td><table><tr><td><p> [4] Why not Wilmar? Down to Earth<br/><a class="refanch small" href="" target="_blank">[click to view]</a></p></td></tr></table></td></tr><tr><td class="fld">Other Documents</td><td><table><tr><td><p><strong>Deforestation</strong> <br/><a class="refanch small" href="" target="_blank">[click to view]</a></p></td></tr><tr><td><p><strong>The plantation</strong><br/><a class="refanch small" href="" target="_blank">[click to view]</a></p></td></tr></table></td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Meta Information</div><div class="content"><table class="table"><tbody><tr><td class="fld">Contributor</td><td>J.-F. Gerber</td></tr><tr><td class="fld">Last update</td><td>03/05/2014</td></tr></tbody></table></div></div>