Improved Land Use Planning for economic growth and emission reduction

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1 Improved Land Use Planning for economic growth and emission reduction ANNUAL WORLD BANK CONFERENCE ON LAND AND POVERTY APRIL 18-20, 2011 WASHINGTON, DC Fred Stolle..

2 Agenda Problem definition Oil Palm Background Strategy Next steps Questions

Deforestation Status of Indonesia s Sumatra Forestsand Kalimantan 2000 2008 5.4 Million ha or 5.

3 Deforestation Status of Indonesia s Sumatra Forestsand Kalimantan Million ha or 5.3% of the land area Maps and data are the result of preliminary analysis carried out by the Indonesian Ministry of Forestry in cooperation with: SDSU, UMD, NASA, USGS, ESF, WB and WRI.

4 Indonesia s Forests

5 Planted area ('000 ha) In Indonesia, oil palm plantations grow with around 300,000 ha /yr Oil Palm Planted Area, Indonesia Sources: Adapted from Indonesian Palm Oil Industry, paper given by Derom Bangun, Executive Chairman, Indonesian Palm Oil Producers Association (GAPKI), at the National Institute of Oilseed Products Annual Convention, March 21-25, 2006, Phoenix, Arizona. Palm oil firms burning Indonesia forests-greenpeace, Reuters, July 12, and Casson and Stolle (in review) 5

Hectares Bali West Sumatra North Sulawesi NTB Lampung Riau Tra Sulawesi Aceh Central Sulawesi North Sumatra South Kalimantan Bengkulu Maluku Jambi South Sulawesi East Kalimantan Central Kalimantan

6 Hectares Bali West Sumatra North Sulawesi NTB Lampung Riau Tra Sulawesi Aceh Central Sulawesi North Sumatra South Kalimantan Bengkulu Maluku Jambi South Sulawesi East Kalimantan Central Kalimantan NTT West Kalimantn South Sumatra Papua million hectares of logged over, forests (Inside or outside outside the forest estate in Indonesia) 2,500,000 Within forest estate Outside forest estate 2,000,000 1,500,000 1,000, ,000 0 Source: Indonesia Ministry of Forestry, 2003; Casson and Stolle, 2010 (in review)

7 6 million hectares of degraded land available for oil palm expansion according to a senior official of the Indonesia Investment Coordinating Board). 7 million hectares of unused/abandoned degraded according to Ministry of Forestry, February million hectares of alang alang grassland 7-14 million hectares of degraded, abandoned lands that may be used for agricultural development according to. 12 million hectares of idle land the National Land Agency ( 31 million hectares of unused land considered suitable and available for agriculture (Agricultural Research & Development Body 2007, 40 million hectares of degraded forests within the forest estate according to the Forestry ministry). 55 million hectares of land designated as non-forest, Ministry of Forestry 2008, cited in Indonesia s draft REDD+ policy).

11 Agenda Problem definition Oil Palm Background Strategy Next steps Questions

12 Palm oil is a leading agricultural product of Indonesia

13 Oil palm recently became the most produced vegetable oil 2008 global vegetable oil production (percent) 100% = ~145 million metric tons Sunflower 8 Other 19 Palm 30 Rapeseed Soy Source: Oil World 2008

14 One reason for oil palm s popularity is its high yields Average metric tons of oil / hectare Oil palm 3.68 Rapeseed 0.59 Sunflower 0.42 Soybean 0.36 Source: Oil World 2008, cited in RSPO Fact Sheet

15 Indonesia is now the world s largest producer of palm oil Global production of palm oil, 2008 (percent) 100% = 42.9 million metric tons Colombia Thailand Nigeria Others 8 Indonesia 44 Malaysia 41 Source: Oil World 2009

Palm oil plantations can provide benefits to Indonesians

jobs 2-5 million people (2005)* Employees:hectare ranges

Casson (personal communication); Barlow, Zen, and

16 Palm oil plantations can provide benefits to Indonesians Yields cooking oil Generates revenue for country Creates jobs 2-5 million people (2005)* Employees:hectare ranges from 1:3 to 1:12** Higher than soy (1: )*** * A. Casson (personal communication); Barlow, Zen, and Gondowarsito, 2003) ** Barlow, Zen, and Gondowarsito, 2003 *** Proforest, 2003

17 However, many oil palm growers clear forests to establish plantations

18 The deforestation associated with oil palm expansion has significant consequences Disrupted forest communities Greenhouse gas emissions Loss of biodiversity Illegal logging

19 Agenda Problem definition Oil Palm Background Strategy Next steps Questions

20 Our vision is to break the link between oil palm expansion and deforestation in Indonesia. But how? Demand = Supply Metric tons crude palm oil (MT CPO) = MT CPO / hectare X Hectares Utilize nonforested lands 20

21 What do we mean by degraded? Native vegetation has been altered by human activity Results in reduction in tree canopy, standing biomass, or species diversity System cannot recover unaided within a defined time period Source: Fairhurst, T. and D. McLaughlin. Sustainable Oil Palm Development Photo: Sekala/WRI

22 Divert planned oil palm concessions away from primary forest and on to degraded land. X X

Seeks to overcome challenges by proof concept of land

owers (e.g., economic, stakeholder pressure)?

23 Seeks to overcome challenges by proof concept of land swaps map the degraded lands Where are suitable and available degraded lands? Is there a business case for growers (e.g., economic, stakeholder pressure)? How to ensure value of conserved forest and therefore permanence? Will local communities approve? Will government permitting allow it?

24 1. Line up partners or stakeholders Sumalindo

25 Provinces of Indonesia

26 Oil palm concessions to be retired Borneo Tract 1 Tract 2

27 1st 3 phased approach 1 Spatial Desktop analysis Quick field test Results of potential area. NOT a goto are 2 nd Prepare community for Free prior informed consent by Community mapping 3rd Company negotiation 27

32 1st 3 phased approach 1 Spatial Desktop analysis Quick field test Results of potential area. NOT a goto are 2 nd Prepare community for Free prior informed consent by Community mapping 3rd Company negotiation 32

35 35

36 Oil palm concessions to be retired Borneo Tract 1 Tract 2

37 Relocating this planned oil palm concession from forest to degraded land can benefit community, company and government Project POTICO pilot land swap field site Oil palm concession

38 Relocating this planned oil palm concession from forest to degraded land can benefit community, company and government Project POTICO pilot land swap field site

39 Community mapping is an important step for clarifying land uses and avoiding social conflict

40 Legal challenges can be tackled in collaboration with companies and government

41 "We have a policy to use degraded land... for the continuation of the palm oil industry in Indonesia Indonesian President SBY, Oslo, May 2010

42 Agenda Problem definition Oil palm background Strategy Conclusion 42 World World Resources Resources Institute Institute

43 Improved Land Use Planning for economic growth and emission reduction Indonesia expansion plans around 6 million ha for oil palm

44 Need 1. Rationalisation of land allocation/ land use 2. Ensure legal status And 3. Free prior informed consent

FoKSBI and The NATIONAL ACTION PLAN FOR SUSTAINABLE PALM OIL

Coordinating Ministry of Economic Affairs Republic of Indonesia Ministry of Agriculture Republic of Indonesia FoKSBI and The NATIONAL ACTION PLAN FOR SUSTAINABLE PALM OIL FoKSBI What Is FoKSBI? The Government