Enhancing the Future of Indonesia Palm Oil With Sustainable Landscape Project

Transcription

1 Enhancing the Future of Indonesia Palm Oil With Sustainable Landscape Project Lim Sian Choo Bumitama

2 Palm Oil: Indonesia s Biggest Export $17.8 B Export Value in % from total export value $16.5 B Export Value in % from total export value 3 M KL = 16,62 M barrel = barrel/day Palm Oil based Biodiesel produced 8.4 M employment 6.8% of labour force in M employment 4.3% of labour force in 2010 Source: BPDPKS, 2017 APROBI, 2017 BPS, 2017

3 Some of Indonesia Palm Oil Concerns Interventions & Initiatives Negative Image Price Downstream Volatility maturity? Price & Downstream Industry Indonesia Palm Oil Fund Management Agency: fund collected $8 B/y Low Yield & high cost Climate change Low Productivity Overlap, unclear regulations: business, peat, conservation Regulatory Uncertainty Forestry vs Spatial Plan; PP 60, PP 62 PP71; BRG Peat Restoration Agency; Kawasan Ekosistem Esensial (KEE)

4 How International Stakeholders See Palm Oil: Exit, Voice or Engage India & China!!?? European Palm Oil Conference, 2015: Boycotting palm oil is NOT the answer. Other alternatives to palm oil is not always better for food concerns, but almost certain will be worst for sustainability. The answer is to produce a more sustainable palm oil: a certified sustainable palm oil

5 Despite Indonesia being the largest producer of sustainable palm oil, Indonesia is still seen viewed as not doing enough. Certified Area by Region Region Jun-15 % Jun-16 % Indonesia 1,527,421 46% 1,547,241 55% Malaysia 1,364,277 41% 756,595 27% Latin America 156,467 5% 258,180 9% Rest of Asia Pacific 220,232 7% 235,959 8% Africa 32,256 1% 32,283 1% 3,300, % 2,830, % Source: RSPO, Numbers for Malaysia exclude suspended members Therefore, we need a new way for securing the future of Indonesia palm oil industry. Multi-stakeholders sustainable landscape efforts is required, engaging government, companies, local communities, international & local NGOs, buyers, end customers, and by complying with national & global sustainable standards of NDPE

6 Business As Usual Scenario Landstat, 2010 Intact forest is located in the heart of Borneo. Elsewhere secondary forests are fragmented Government allocates land use on economic reasons, after setting aside conservation area Oil palm and other companies maximises their concessions, except for HCV, deep peat. CSR program may be implemented Community engages in shifting cultivation or agroforest practices: slash & burn mostly Encroachment with or into national park, illegal logging, illegal mining Food & other basic needs are supplied from other regions Fire rages almost every year

7 Why Ketapang Source: IDH, 2016 Ketapang, the biggest district in W Kalimantan, has at least 5 landscapes with significant fragmented forests: 1. Gunung Palung Gunung Tarak Sungai Putri 2. Mangrove Ecosystem 3. Fresh Swamp Water 4. Batu Menangis Rongga Perai 5. Pematang Gadung Pesaguan - Kendawangan Those fragmented forests need to be connected to ensure and improve biodiversity sustainability

8 Bumitama A young producer of CPO and PK in Indonesia, Total land bank of 225,000 ha Started in 1996 in Central Kalimantan and listed on the Singapore Stock Exchange in 2012 Launched New Sustainability Policy in 2015, covering our NDPE (No Deforestation, No Peat Planting & No Exploitation) commitment

9 Bumitama Biodiversity & Community Project (BBCP) How did it start: Started with discussion on HCV protection, to connectivity using the main river in GMS. It morphed and grew into this very ambitious and interesting landscape project, involving multi stakeholders, covering various themes like improving biodiversity, communities also guardian to conservation, communities livelihood and capacity building, government engagement and etc Conservation area of project : PT GMS 1,100 ha PT DAS 6,500 ha The project expanded with the inclusion of a new concession, PT DAS

10 Bumitama Biodiversity & Community Project (BBCP) Conservation area of project : PT GMS 1,100 ha PT DAS 6,500 ha Introduction: - Surrounded by national park, protected forest, good intact secondary forest (HCS, HCV) - Natural corridor needed by flag endangered species; orangutan - Deep peat forest with unique biodiversity - Existing practices of illegal logging, mining - Some area was damaged by fires, either natural or shifting cultivation - Some local community is near poor (unsystematic job and economic development) - Bad agricultural practices - Moderate infrastructure development - Water resources not managed holistically

11 Bumitama Biodiversity & Community Project (BBCP) Purpose: Protection, Production & Inclusion Biodiversity corridor, peat conservation & restoration Local economy development Synergy with government social forestry program Village planning & development Improving smallholders productivity & sustainability Conservation area of project : PT GMS 1,100 ha PT DAS 6,500 ha In partnership with IDH and Aid Environment and others

12 Objectives of BBCP Biodiversity protection, especially endemic & flag species Rehabilitation of forests (peat, regenerating) Protecting forest area from illegal loggers, miners, hunters, fire Ensuring sustainable production of oil palm in plantation and smallholders estates Assisting smallholders (palm oil) to legalise its operations & practice sustainable agricultural practices, certification Alternative sustainable livelihood to prevent community from unsustainable livelihood Inclusion of wider stakeholders interests Government, NGOs, community, other companies, international audience

13 Improve smallholders productivity Village level planning to ensure conservation, social forestry & alternative sustainable livelihoods Suppoort from wider stakeholders, esp peer companies, for sustainable landscapse concept, starting from biodiversity corridors, non timber forest products, to sustainable development Long term vision for sustainable local development Leadership from Government for reforestation, connect fragemented forests & implement social forestry, Kawasan Ekosistem Esensial 13

14 Timeline Short Term <1 year Securing buy-ins from stakeholders Local economy development Biodiversity corridor and connectivity Reforesting and enriching Medium Term 1-3 years Long Term > 3 years Funds for Ecotourism projects Getting government protection for set-asides conservation area Sustainability certifications for smallholders Engaging growers and international stakeholders Ensure sustainable post project Engaging government & industry to use sustainable landscape concept as showcase for enhancing the future of Indonesia sustainable palm oil Replication to other landscapes Self managed conservation areas

15 Summary We need a new way for enhancing the future of Indonesia as the biggest producer of sustainable palm oil Sustainability should be applied across the board Not only companies, smallholders, community Government Key business players: bankers, retailers Consumers Sustainable landscape project provide ways to engage with all stakeholders in meaningful, win-win ways International stakeholders need to be convinced on the sustainability of Indonesian palm oil Sustainable landscape projects are offering new ways of engaging wider international stakeholders