Progress Report to RSPO on Complaint Filed Against PT Mitra Austral Sejahtera(PT MAS) by the Project Affected Community, Sanggau, Kalimantan Barat, Indonesia Prepared by: Sime Darby Plantation Sdn. Bhd 28 th January 2014
EXECUTIVE SUMMARY Sime Darby Plantation Sdn. Bhd (Sime Darby Plantation) received a complaint on its subsidiary, PT Mitra Austral Sejahtera (PT MAS) after RT10 meeting in Singapore. The complaint on 5 th November 2012 from the Project Affected Communities (PAC) in PT MAS was made to RSPO although there was an on-going engagement process between Sime Darby Plantation and PAC. The complaint was part of the earlier 14 demands that were routinely brought up for discussion with Sime Darby Plantation Management during every RSPO RT meeting. To date 10 of the 14 demands are resolved and the remaining demands are mainly related to land matters which involve local government/authorities and are beyond Sime Darby Plantation jurisdiction. Nevertheless, as part of being transparent throughout our operation, Sime Darby Plantation has voluntarily committed to quarterly reporting on the progress of resolving the 14 demands to RSPO. This commitment was made during a meeting between Sime Darby and OXFAM with the presence of RSPO Secretary General- Mr. Darrel Webber on 3 rd November 2012. This report is the third progress report submission to RSPO. First report dated 5 th December 2012, second report dated 22 nd May 2013 and its addendum dated 18 th July 2013 have been submitted to RSPO. Response from the PAC on second report submission & its addendum was provided to Sime Darby on 7 th July, 5 th August and 10 th October through OXFAM and TuK and another response directly from the community of Kerunang and Entapang on 24 th October 2013. For the period under this reporting (August 2013 to January 28 th 2014), PT MAS has conducted three meetings with PAC at MAS Mill in Modah, Sanggau on 22 nd August 24 th October, and 16 th December 2013. Another meeting was also held during RT 11 in Medan on 13 th November 2013. The meetings on 22 nd August and 13 th November were attended by RSPO Secretariat as observer. The PAC was represented by Tim Kerja Perwakilan Petani (TKPP) elected among them. All TKPP members consistently attended the three meetings in MAS mill, except for representatives from Kerunang and Entapang. Every meeting discussed the way forward on resolving the remaining three demands. For Demand no 1 and Demand no 12 on land matters, it was agreed that the discussion with the Bupati will be conducted once the new Bupati officially start his term in office. A lot of improvement were made on the discussion to resolve Demand no 8 on scholarship. Inputs to the discussion were mainly provided by TKPP. Apart from these, the meetings also reported the progress of socialization on the outcomes of 4 th June 2013 meeting. All villages and hamlets (dusun and desa) have conducted the socialization process except for Kerunang and Entapang despite the fund allocations for the process were accepted. The agenda for the socialization process include updating the community on the status of demand that have been agreed and plans for moving forward. The socialisation also officially re-endorsed the TKPP as the elected representatives of the communities.
During the meeting on 24 th October 2013 just before the RT 11, SDP was informed through TKPP that members from Kerunang and Entapang have decided to quit the TKPP. The meeting on 13 th November 2013 in Medan, was attended by three TKPP members, a representative from Kerunang and Entapang (Bp. Musa), SDP Management, OXFAM, TuK, WALHI Kalbar as well as RSPO Secretariat. The main outcome of the meeting was everybody agreed that there were progress and sincere commitment by the company in resolving the 14 Demands. Other highlight of the meeting by Bp. Musa with the support and assistance from OXFAM and TuK was that the community of Entapang and Kerunang did not agree on the TKPP representation for their constituency. They also highlighted on the issue of community land rights vs. HGU and hence, decided not to accept replanting. On top of that, Bp. Musa informed that his community is unclear of the terminology used (i.e. closed) for the status of demand. The other TKPP members attended highlighted that the engagement they had with SDP through TKPP-PT MAS meeting had given a different perspective which allowed them to contribute in resolving the demands and to move forward. Their communities accepted the current status of demands and are very clear of what are considered as closed. On the formation of TKPP, they understand Bp. Musa s concern. However, the TKPP was established by the community and Bp. Hamdi was elected as their leader. The meeting also concluded that the existing TKPP will decide on engagement with Kerunang and Entapang community. Apart from the above, this report highlighted the response from PAC/OXFAM and TuK on the previous submission. The main highlights were of the same concern by Bp. Musa on the formation of TKPP and, the term (closed) used for reporting the status of demands. The other highlights were the concern that SDP might be using divisive and segregation tactics in relation to socialization of the 4 th June outcome as well as limiting opportunity for soliciting external advice. SDP noted the above concerns. However, SDP never uses intimidation or divisive tactics in our operation. What was agreed with the community was the request of no involvement of third party and the socialization to be done by TKPP member to their constituency at their own convenience. As of 28 th January 2014, the three remaining demands are still being discussed. SDP is committed to continue engaging the community not only to resolve the demand but also on any other matters. Table below highlights the status of the 14 demands as of 28 th January 2014. Demand 1. Customary Land / rights (communal rights) are considered as core estate in PT.MAS II (PT Golden Hope) for one single period of 25 years should be withdrawn and returned to rightful holder of the oil palm farmers or local indigenous communities. Remarks
a) Review the Partnership Pattern that is unfair and not in accordance with the applied rules/regulations (Regional Regulations Number 03 Year 2004, concerning the Partnership Pattern), especially 70%:30% ratio of the size of core plasma estate. 3. The Company shall comply with the provision of 2 hectares of land for plasma estate 4. Customary land that was part of the nucleus (Inti) estate in year 10 should be considered as farmers or farmers organisation s shares of stock in holding /partner company with ratio of 60%:40%. 5. Review the sub-standard credit agreement between the management of PT MAS and the representatives of farmers or farmer organizations and village / indigenous leaders, and cooperative. 6. Reject 30% reduction (refuse to pay the credit) for credit reserve and semi management fee by the company/kud until explanations are made directly to and openly with all farmers in accordance with prevailing norms and regulations/provision. 7. Holding company/partner must be responsible for similar plantation maintenance/treatment between core and plasma plantation (based on plantation technical regulations/standards) according to the prevailing provision or agreement by reassessment conducted by the Plantation Assessment Team including the oil palm farmers organisation as its member. 8. The company is obliged to provide scholarship, education and training for ex-farmers children in fair, open and transparent manner. Completed 9. The company is obliged to provide work opportunity for farmers children or local community members based on their proportion gradually and continuously. 10. Company is obliged to fulfill the promises to build infrastructure and public facilities for the community and the surrounding area of the plantation, as stated at the time of the initial consultation. If the promises are not fulfilled, the company is obliged to compensate the land-core promise to the community. Completed with statement that the company will ensure that public road is maintained.
11. The company partners (PT.Golden Hope/ PT MAS) are obliged to fulfill the rights of farmers who have given up land that is without a lot, especially (plasma) according to the agreement or rejection and distribution / management rights in a joint venture / partnership. 12. Rearrangement of plasma estate location for farmers must be based on each village s custom area location. 13. The oil palm farmers in PT MAS II (PT Golden Hope) Plantation agree to establish new co-operation in order to improve and increase cooperation/farmers organisation s service to its members. 14. Urging security forces and indigenous leaders to follow up this case based on prevailing law due to indication of pressure, intimidation, and terror by the company s personnel, Satlak/Satgas and regional government personnel to members and the organizations of oil palm farmers (Oil Palm Farmers Union/ Serikat Petani Kelapa Sawit) in Parindu. - End -