The Indonesia Chamber of
Commerce [KADIN] was not careless about seeing the problems in CPO industry in
peatland within the context of environmental damage and natural disasters like
flood and forest fire. Self reliant plant growers were part of the activities
of growers in the peatlands which was sensitive to land dispute. “We have
talked about Reducing Emissions from Deforestation and forest [REDD] plus. But
the afield showed that land dispute was always problematic. We are throwing a
discourse over Conflict Resolution [CR]. Fortunately some palm plantation
companies were willing to show examples.” Darsono Hartono, Vice Chairman of
Permanent Committee of Forestry, Sustainable Conservation and Climate of KADIN
stated to Business News sometime ago.
KADIN’s initiative for CR finally was finally showing
benefit. Not just companies but also for self
reliant farmers could benefit. The most thinkable was formation of CD in
very company. The working platform anticipated what had always threatened palm
plantations. “All officials have to do is to identify one by one the facts and
problems afield.”
The difficulty for growers was transaction system with
core companies. There was tendency that plasma big companies would be under
pressure not to buy fresh plums of palm from plantations on peatland. The banks
which channeled credit would be very attentive to the matter. This was the
consequences of landscape application of environment orientated plantation in
Southeast Asia. “Self reliant farmers are in big dilemma, because some farmers
had already planted palm tress on peatlands. But if core companies buy the
yield there was fear of pressure from banks. Even ‘big’ players were most
unlikely to buy farmer’s palm anymore”
KADIN feared that self reliant farmers were tempted to
plant palm tress on peatlands. They felt sure that factories would still buy
fresh plums. So even narrow land in the backyard would be used as plantations.
May farmers were being offered the benefits of selling to
processing factories. They had traumatic experience with non peatland
plantations. The non-peatland plantations were located 20 meters from farmer’s
homes. “Now there is new homework for KADIN and all stakeholders including
NGO’s. We must constantly publics the best option for self reliant farmers, so
they can keep planting palms without land problems, peat land or non-peatland.”
Meanwhile the director of Weatlands International
Indonesia I Nyoman Suryadiputra saw that the management of peatland for palm
plantation called for great effort, but it was not impossible that small
investors were also reaping profit. For example palm independent growers of
Tanjung Betung,
extended credit had already
made appraisal and assessments.
Bank’s will see to what extent the environmental
principles are applied by plantation companies. We have no data of the existing
reality. Afield we can see may farmers plants palm on peatland of thickness
above 3 meters. This is prevalent in East Java. Some Laws related to palm
plantations prohibited it. Peatland above 3 meters are potentially destructive,
but investment are prevalent there. Bank Mandiri must observe the matter so
credit extention is not identical with deforestation,” Nyoman disclosed to
Business News sometime ago.
Meanwhile Bank Mandiri underscored there would be no
financing for growers who plant on peatland of 3 meters thickness. “We do not
financing palm plantations on peatlands. We only finance plantations already
planted. We also observe the feasibility aspect. If there is any financing for
plantations peatland, it is given before the moratorium was effective” a Bank Mandiri
official who refused to reveal his identity discloused to Business News.
The Government set moratorium for issuing new permits and
improved management of primary forest and peatland. Moratorium was effective in
2011 through Inpres No 10./2011 but still spared 6.4 million ha of degredated
forest. “I assure that palm plantations on peatland are not of Bank Mandiri
Groups.”
Reality showed that growers would find it hard to find
mineral land for planting palm, but Bank Mandiri hardly ever Monitored the
process of palm planting. Financing was more channeled to ex- Dutch companies
who were nationalized. Financing was also given to private companies who had
chosen mineral land. Although mineral land had run out in Sumatra, new players
were entering to explore peatlands. “Because there was booming. Price of palm
reached Rp8,000 per kg, many land were processed by private companies but by
percentage, peatland constituted more than 30 percent.”
Financing by Bank Mandiri was addressed to private
companies with portofolio in plantation sector. One of them was a plantation
company belonging to Sinar Mas Group as the biggest conglomerate palm
plantation company on Indonesia. The company applied plasma plantation system.
Assistance to Sinar Mas plasma farmers compassed 10 thousand ha of land.
Factory operations with management assistance was running well. “at first there
were obstacles, but they were overcome. Social hindrances was overcome by
leveraging farmer’s capability. Credit was also extended for individuals. We see
the land’s condusiveness, capital aspect, technology and so forth.” (SS)
Business New - July 4, 2014
No comments:
Post a Comment