GAR Progress Report to RSPO CP Complaint on PT KPC + 17 PTs Mar 2017
Contents 1. Summary of key events (Jan - Mar 2017) 2. Status of GAR follow-up on CP decisions 3. Summary status of agreed action plan 4. Next Steps slide 2
1. Summary of Key Events (Jan - Mar 2017) slide 3
1. Summary of key events (Jan 2017 Mar 2017) Page 1 of 2 Date Event Details Status Jan Mar 2017 Key community consultations and meetings on land tenure and remediation in KPC Community consultation focusing on grievances and claims facilitated by LINKS. Current focus on Abdul Rasyid claim. 3 X participatory mapping done. Consultations with community on FPIC remediation facilitated by TFT. SMART/KPC staff participated in all consultations. Waiting for comparison of details to settle Abdul Rasyid claim. Mantan and Menapar signed MoU with KPC on 9 & 7 Mar 2017 Discussions on MoU with Marsedan dan Suhaid ongoing Jan- Mar 2017 Participatory mapping exercise for -- PTs completed/in progress Ongoing in PT BAT for 3 villages. 9 PTs complete Jan 2017 Community development program Training for cadres and community for moringa cultivation with Dian Desa Planting of trees started. Organic farming for food security project ongoing. Community training centre built by KPC 8 cadres trained 14,000 trees planted 25 women participated in organic farming program in each village (Mantan and Menapar). Demo plot for planting vegetable is ready, size 1000 M2 each village. Both villages have chosen padi and vegetables as commodity on organic farming pilot project. Organic Farming phase now : Baseline Survey and strengthening community group. slide 4
1. Summary of key events (Jan 2017 Mar 2017) Page 2 of 2 Date Event Details Status 24 Jan 2017 Meeting between GAR and FPP Meeting focused on planning of proposed joint visit to communities around KPC. GAR proposed having independent facilitators and candidates were discussed. Agreed that more details including TOR would be sent to FPP for consideration. Marcus also updated that FPP lawyers still reviewing HPRP legality report. Joint visit, originally planned for Feb 1 was postponed because of lack of lead time for invitations and other preparations. FPP updated that they proceeded with visit to communities in Kapuas Hulu 28 Jan to 3 Feb and will send update to GAR. Proposed joint visit in July and GAR agreed. 2 Feb 2017 Discussion with RSPO Clarified questions and requirements for NPP public notification for proposed plasma (111.8 Ha). RSPO gave the go-ahead for development to proceed. Development in progress. Communities have indicated readiness to release more lands to fulfil plasma requirement. Jan/Feb 2017 Engagement with Rainforest Alliance GAR is engaging RA to audit its GSEP and will include review of GAR actions in KPC vs agreed complaint resolution plan in the scope. TOR and schedule agreed. Field work commenced in Mar 2017. 18 Feb 2017 RSPO forwards complaint letter from LINKar Borneo to GAR LINKar Borneo letter dated 17 Feb covered land grievances by some individuals and included previous complaints, some which were already highlighted earlier (water pollution, incident at Emperiang). Complaints were investigated immediately upon receipt. GAR replied to RSPO on 23 Feb 2017. Information on new grievance to be incorporated into KPC grievance process. Other matters raised have either been resolved or already being addressed. slide 5
2. Status of GAR follow-up on CP decisions slide 6
2. Status of GAR follow-up on CP decisions RSPO CP Final Decision dated 6 May 2015 GAR status report Update Status Progress Track 1. On FPIC: GAR must take remedial actions to correct shortcomings in its land acquisition process with the affected communities. Replied on 29 May 2015. Agreed with FPP on action plan for remediation. TP3K socialized the status of the land after the expiry of HGU to the community on 13 May 2016 (Desa Mantan and Nanga Suhaid). HGU issue was clarified and the community had accepted, in writing, that it accepts that the status of the land will be decided by the government after one cycle (Note: TP3K explained clearly that HGU valid for one cycle and 35 years is the maximum term for plantation, but could be shorter depending of the productivity of the crop). FPP view is that the meetings are only a re-statement of prevailing law and communities acknowledgement of this. Community development/remediation MoUs signed with Mantan and Menapar in Mar 2017. (GAR continues to work with communities, facilitated by LINKS and TFT, to agree on remediation package. For other PTs, this will be addressed per remediation TORs, see Section 3. Update MoUs with Mantan and Menapar signed in Mar 2017 Ongoing for other communities 2. On legal permits and licences: GAR must demonstrate that it possesses the legal documents as required under Indonesian law for land development in the 18 PTs. 3. On exceeding maximum land holdings: To be pursued by the Ministry of Agriculture HPRP submitted report to RSPO. On page 40 of the legal review HPRP concludes In brief, aside from findings delivered in Point III.5 herein, we would view that on the Complaint Date GARs Subsidiaries had complied with prevailing laws and regulations in Indonesia. GAR agrees with findings and will follow up on Point III.5. FPP is reviewing the legal opinion. Update No action by GAR, to be pursued by RSPO Historical NA Completed slide 7
2. Status of GAR follow-up on CP decisions RSPO CP Final Decision dated 6 May 2015 GAR status report Update Status 4. On HCV assessments: HCV assessments done by 18 PTs to be subject to peer review. Replied and submitted documents on 29 May 2015 that the original HCV assessments for 18 PTs have been peer-reviewed. As additional measure, Ekologika is engaged to improve the protocol for HCV management and monitoring. FPP met with Ekologika on 8 Apr 2016 to review the work done. GAR understands that FPP is satisfied with the quality of work and progress, particularly the management and monitoring protocol of HCV4-6. MoUs for HCV conservation and monitoring signed with 6 communities, discussions ongoing with 4. Approach shared during RSPO RT14. LINKS working with Mantan and Menapar on HCV5. Update Progress Track Ongoing 5. On plasma: GAR to honour commitment to allocate 20% of land to smallholders. Submitted details to RSPO on 29 May 2015 that plasma constituted 21.3% of planted area. However, GAR recognises that communities calculated 20% allocation based on total area discussed prior to allocation for HCS and other commitments. NPP submission and public posting for plasma development in PT PIP was completed on 6 February 2016. GAR have identified potential additional areas in KPC and Menapar community has requested that agreed plasma area (111.8 Ha) be developed first before additional areas are considered. RSPO in-principle pproval for development received in Mar 2017. Development work to proceed and discussions for further land release ongoing. Update Ongoing slide 8
2. Status of GAR follow-up on CP decisions RSPO CP Final Decision dated 6 May 2015 GAR status report Update Status 6. On NPP: GAR to declare all land planted with NPP. To clarify on late submission for the 18 PT s. Submitted details to RSPO on 29 May 2015. Excerpts from notes of 14 Sep 2015 meeting for recap: RK recap the chronology of GAR NPP posting on 7 Mar 2014 and from the last notes of meeting on 24 Jul 2015, where the RSPO Secretariat acknowledged the agreed proposed approach by GAR in Mar 2012 requesting RSPO not to publish GAR s NPP based on the reasons raised (public listed selective disclosure etc). Darrel Webber will explain to FPP on this agreed RSPO action and will also present to the CP to decide on RSPO action. Historical Progress Track Completed Action: 1. RSPO will clarify with FPP on the delays in these posting of NPP notifications. 2. RSPO to address on GAR NPP posting with CP and FPP as per notes of meeting on 24 July 2015. 7. On new land development: GAR to stop acquiring or developing new land until complaint dealt with. Submitted declaration to RSPO on 18 Dec 2014, repeated in letter of 29 May 2015. GAR confirms that it is still suspending acquiring or developing new land in the relevant PT s. Historical Complying 8. GAR / PT KPC to i. Confirm all development halted until complaint resolved ii. Furnish a detailed reply to the allegations Letter from GAR to RSPO dated 25 Mar 2015 confirmed all development in PT KPC halted and furnished reply to allegations. Further clarified in letter dated 29 May 2015. Historical Completed slide 9
3. Summary status of agreed action plan slide 10
3. Summary status of agreed action plan Action Plan Item 1. Completion of Participatory Mapping (PM) in 18 PTs. GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Completion of 7 PTs PM. Completion of Roll out plan for all companies. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Agreed GAR Status Update 9 PTs completed. 4 PTs ongoing, planned by end 2017 Progress Track Completed for 9 PTs. Rollout for others in progress. 2. FPIC guideline (including Land Tenure Study guideline) implementation. Completion of guideline endorsed by relevant stakeholders (e.g. TFT, FPP). Completion of Training and socialization of the guideline. Agreed FPIC SOP was reviewed by FPP (2014) and its comments were incorporated in the revised FPIC SOP. The SOP was developed jointly with LINKS. A Land Tenure Guide was also developed as part of practical FPIC Guide. Ongoing The revised SOP has been tested in five PTs in West Kalimantan and Riau and ready for endorsement by management. slide 11
3. Summary status of agreed action plan Action Plan Item 3. Land Remediation in KPC (FPIC Consultation) GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Conduct FPIC consultation in all relevant villages. Implementation of FPIC consultation. Detail roll out plan in relevant villages in KPC shared with FPP. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Agreed GAR Status Update 1. TP3K socialized the status of the land after the expiry of HGU to the community on 13 May 2016 (Desa Mantan and Nanga Suhaid). HGU issue was clarified and the community now understands and accepts that the status of the land will be decided by the government after one cycle (Note: TP3K explained clearly that HGU valid for one cycle and 35 years is the maximum term for plantation, but could be shorter depending of the productivity of the crop).. FPP view is that the meetings are only a re-statement of prevailing law and communities acknowledgement of this. MoU signed with Mantan and Menapar in Mar 2017. Discussions ongoing with other communities. 2. Communities in KPC have decided that Sertifikat Hak Milik (SHM) is preferred to HGU for Plasma. GAR will facilitate. 3. PLASMA area allocation: GAR has identified some areas and in discussions with community about acquiring additional land for PLASMA., Menapar community has requested that agreed plasma area (111.8 Ha) be developed first before additional areas are considered. RSPO in-principle approval for development received in Mar 2017. Development work to proceed and discussions for further land release ongoing. Progress Track MoU signed with Mantan and Menapar. Other activities ongoing. slide 12
3. Summary status of agreed action plan Action Plan Item GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Status Update Progress Track 3. Land Remediation in KPC (FPIC Consultation) Conduct FPIC consultation in all relevant villages. Implementation of FPIC consultation. Detail roll out plan in relevant villages in KPC shared with FPP. Agreed 4. GAR has studied the new option of Hak Komunal as proposed by FPP based on the new Ministerial level regulation (Permen Agraria 9/2015). The initial findings confirm that this option has not yet been applied in Indonesia in a similar context. The regulation is still lacking in implementation detail/ supporting law as well as clarity in terms of the relationship with existing Indonesian plantation law. There would also be impact on the financial agreement already in place for both inti and plasma as that financial agreement is tied with the HGU/SHM conditions. GAR conclusion is that this option is not feasible for KPC but is open to explore in other new developments. Ongoing slide 13
3. Summary status of agreed action plan Action Plan Item GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP GAR Status Update Progress Track 4. Enhancement of HCV assessment Sharing of draft enhancement protocol (assist by Ekologika). Sharing of roll out schedule of the protocol. Incorporating the enhanced protocol in any submitted NPP. Agreed FPP met with Ekologika to review the management and monitoring protocol on 8 Apr 2016. GAR understands that FPP is satisfied with the quality of work and progress. Workshops conducted with communities: 1. PT PIP: All communities signed MOU for conservation and monitoring. 2. PT KPC: 2 communities signed, 4 communities in discussion. 4 communities reject MOU, but these are outside the cadastral. Ongoing Approach shared in the RSPO RT 14 LINKS working with Mantan and Menapar communities on HCV5 slide 14
3. Summary status of agreed action plan Action Plan Item 5. Fulfilment of smallholding commitment. GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Conduct Plasma consultation (community engagement) to discuss the issue with communities transparently. Implementation the agreed resolution resulting from the discussion. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Agreed GAR Status Update From a regulatory standpoint, for the 18 PTs: 1. 15 PTs are obligated to pursue the 20% plasma threshold (Min. of Agri No.26/2007) a. 7 PTs have fulfilled plasma threshold, b. 3 PTs are in fulfilment progress including PT. PIP whose NPP was approved in Feb 2016, c. 2 PTs are in the process of obtaining land and permit, d. 3 PTs are pending government decision to pursue the plasma threshold Progress Track Ongoing 2. 3 PTs are not obligated to meet the 20% plasma threshold (given their IUP permits were issued before 2007), yet pending government decision they will continue to develop plasma for community. 3. All PTs where government decision is pending (1d and 2) are subject to regulations (PP104/2013 and PP60/2012), which resolve a spatial planning dispute between the Ministry of Forestry and the Central Kalimantan provincial government. GAR has submitted pleas for clarification under each PT, but until governmental technical teams finish land analysis and dispute is settled, GARs ability to develop plasma is restricted. (Continued next page) slide 15
3. Summary status of agreed action plan Action Plan Item 5. Fulfilment of smallholding commitment (continued) GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Conduct Plasma consultation (community engagement) to discuss the issue with communities transparently. Implementation the agreed resolution resulting from the discussion. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Agreed GAR Status Update From the social point of view, GAR is reviewing documentation to determine, whether local communities and individual PTs have made plasma agreements above and beyond the regulatory threshold. Such is the case in PT KPC, where the community understanding is that management agreed to 20% plasma development on the total compensated (rather than planted) area. PT. KPC: 1. GAR explored the possibility of implementing FPP s recommendation regarding release of inti area into plasma. The conclusion is that existing financial arrangements including bank loans for both inti and plasma and also permits with MoA and Kabupaten makes it virtually impossible to change. 2. GAR has identified some areas and in discussions with community about acquiring additional land for PLASMA., Menapar community has requested that agreed plasma area (111.8 Ha) be developed first before additional areas are considered. RSPO inprinciple approval for development received in Mar 2017. Development work to proceed and discussions for further land release ongoing. Progress Track Ongoing. slide 16
3. Summary status of agreed action plan Action Plan Item 6. GAR PT s Legality and maximum landholdings GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Agreement of ToR for independent legal opinion (lead by RSPO) to assess PT legality Agreement that the RSPO address the issue of maximum landholdings Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Agreed. GAR Status Update HPRP submitted report to RSPO. GAR agrees with findings. FPP reviewing the findings. Progress Track Completed 7. Remediation of Land developed without proper consent in 17 PTs Agreement of ToR of the Remediation process with FPP Agreed (on 8 Apr 2016) Field planning and implementation in PT PIP, PGM, ATM and AKPL ongoing, facilitated by TFT. Verification phase completed, preparation for public consultation. PT KGP and CNG ongoing, facilitated by LINKS. FPP and relevant stakeholders will be updated on progress every 6 months. Ongoing slide 17
3. Summary status of agreed action plan Action Plan Item GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP GAR Status Update Progress Track 8. Others: Exclusion from KPC s HGU area of community rejected Palm Start process discussion with the community. Agreed. As reported to FPP on 2 Feb and in the Mar Progress Report, KPC excised relevant areas from its cadastral map and submitted the map to the land agency, BPN. Having completed the PM and excised communal areas, such as in Kenabak Hulu, KPC is not aware of any unresolved overlapping land claim. Closed for monitoring slide 18
4. Key next steps Implementation of remediation TORs for remaining 17 PTs Continue with remaining agreed actions in KPC Ongoing implementation of community development/remediation program in KPC Regular progress update and discussion sessions with FPP slide 19
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