Indonesia

Since the Indonesian government wants this country to become the first world exporter of oil palm --overcoming Malaysia-- this industry is currently undergoing a boom. To face the negative effects that oil palm plantations are producing at the local level on the environment and on peasants and their livelihoods, last July a group of Indonesian NGOs created Sawit Watch (see WRM bulletin nr. 14). Several actions have since then been carried out.

The ban on the activities of three environmental NGOs -LBBJ; Plasma and SHK Kaltim- in Kutai district, East Kalimantan has caused general concern. LBBJ (better known as PutiJaji) carries out community empowerment through legal rights education, Plasma is a forest campaigning organisation, and SHK Kaltim is a branch of a national network which promotes community-based forest management systems.

Oil palm (know as "Sawit" in Indonesia) is an increasing problem for people and the environment in that country. In May this year, the Minister of Forestry and Plantation Estates stated that the government had allocated 30 million hectares of forest for oil palm plantations. Indonesia has already 3.2 million hectares of oil palm plantations, mainly located in Sumatra (1 million ha). Every year 330,000 hectares of forest is targeted for conversion into new plantations and 650 investors --75% of which foreign companies-- are applying for converting forest into oil palm plantation.

On July 20 over 1,000 security forces arrived to break through a blockade set up by villagers and students at Indorayon's paper and rayon pulp factory (PT IIU) in Porsea, near Lake Toba in North Sumatra. Demonstrations have hampered production since mid-June. Hundreds of local people supported by university students and members of environmental groups had blocked roads leading to PT IIU's mill, forcing the factory to stop production since its supplies of timber and fuel have been cut off.

Indonesia’s forests occupy about 120 million hectares. Although at least 2-3 million families of indigenous peoples live in or around the forests and many of the 220 million inhabitants of the country depend directly or indirectly on forests for their livelihood, the government’s approach has been to consider forests as "empty" land. Logging and plantation companies are responsible for the high deforestation rates (1 million hectares a year according to the World Bank, but 2,4 million according to Indonesian NGOs).

A land dispute between local farmers from Kuala Batee and the oil palm plantation company PT Cemerlang Abdi has erupted into violent conflict. After several months of attempts to negotiate over land rights, hundreds of angry villagers went to PT Cemerlang Abdi's base camp and told the staff to leave. They took away vehicles, heavy machinery and a generator before burning the base camp to the ground. A security police post was also burnt down.. No-one was killed, but six people were shot and injured (two seriously) and 49 were held in custody after security forces moved in.

A group of Dayaks recently toured Australia to promote solidarity with their struggle for land rights and compensation from Australian-based mining companies, which account for more than 60% of Australian investments in Indonesia.

The timber empires of Bob Hasan and others are crumbling amid the economic crisis in Indonesia. A third of the country’s timber companies are facing bankruptcy.

It seems that problems for the Dayak people in Central Kalimatan do not cease. While they are still suffering the consequences of this year's enormous forest fires, the mega-project launched by President Suharto at the beginning of 1996 to convert around 1.5 million hectares of peat swamp forests into rice-fields keeps on going, in spite of the local and international protests, and of the recommendations made two months ago by the EIA carried out in the area.

Freeport, a huge US-based mining company that operates in Indonesia, owns the Grasberg gold mine in Irian Jaya, the biggest open-pit gold mine in the world. This mine is producing a significatively negative environmental impact both on the water courses and on the forests of Irian Jaya. Ajkwa River -into which Freeport dumps 125,000 tons of rock waste every day- was considered by the provincial environmental bureau in April 1997 as not filling the required public health standards because of contamination from mining waste.

It seems that problems for the Dayak people in Central Kalimatan do not cease. While they are still suffering the consequences of this year’s enormous forest fires, the mega-project launched by President Suharto at the beginning of 1996 to convert around 1.5 million hectares of peat swamp forests into rice-fields keeps on going, in spite of the local and international protests, and of the recommendations made two months ago by the EIA carried out in the area.

UPM-Kymmene of Finland and Singapore-based Asia Pacific Resources International Holdings Ltd.(APRIL), have agreed to establish a strategic alliance to develop jointly their respective fine paper operations in Europe and Asia. In Europe, UPM-Kymmene will hold 70% and APRIL 30% of a new company called UPM-Kymmene Fine Paper, which will comprise UPM-Kymmene's fine paper units, Nordland Papier in Germany and Kymi in Finland. This new company will be the largest fine paper producer in Europe with a combined annual capacity of 1.7 million tonnes of paper and 460,000 tonnes of related pulp.