SUBJECT
In March 2022, Friends of the Earth (FoE) and Walhi released a report – “No Consent Astra Agro Lestari’s land grab in Central and West Sulawesi, Indonesia”. The report claimed that PT Agro Nusa Abadi, PT Lestari Tana Teladan, and PT Mamuang, AAL are responsible for various violations of the environment, human rights, and governance.
The report claimed that the three subsidiaries are embroiled in protracted land conflicts with local communities in Central and West Sulawesi, accused of violent land-grabbing abetted by Indonesian security forces, and implicated in illegal deforestation, forest encroachment, and soil, air, and water pollution with negative impacts to communities’ livelihoods.
PROGRESS
April 2022
Apical reached out to PT AAL to investigate the above allegations
May 2022
Apical held a meeting with Astra on the allegation. Astra informed that they are aware of the report and has provided them with its response in March 2022. AAL informed that they always operated in accordance with Indonesia law.
In a statement that AAL further clarify that PT Mamuang (Mamuang), PT Lestari Tani Teladan (LTT) and PT Agro Nusa Abadi (ANA) have always operated in accordance with the law in Indonesia and hold all the necessary permits to conduct their business and operations. None of these AAL subsidiary companies is involved in any illegal land acquisitions.
AAL also informed that all of its subsidiaries do not engage in any form of ‘land grabbing’ or human rights violations. As a responsible and sustainable operator with a long history in Indonesia, AAL take any overlapping land ownership claims extremely seriously and rely on the established legal system to resolve any ownership disputes.
On the environmental issue, AAL committed to running its business in an environmentally and socially sustainable manner, in compliance with all applicable laws. This includes managing its impact on the local environment and helping to support the livelihoods of local communities. Since 2015, ALL has formalised their commitment to the NDPE principles of “No Deforestation, No Peat Development, and Respecting Human Rights”, following which there has been no new development of land. NDPE is also a critical element of its 5-year sustainability plan (2021-2025), in which AAL outlines specific steps for each category.
Having investigated each of the allegations made in the FoE report in detail, AAL is confident in the processes that it has in place across the group to ensure that it is operating responsibly and in accordance with its operating procedures and in line with all applicable regulations. The statement can be found here
October 2022
Apical held further engagement via a meeting with PT AAL on the allegations raised. Astra has informed that an open response (available here) has been provided with further clarification. PT AAL has reaffirmed that the company operates in accordance with sustainable best practices and Indonesia law. Information of the allegation with clarification provided from the engagement with PT AAL on progress being made is as per listed below:
PT Mamuang:
- The mill has been operating legally with operating permit (HGU) since 1997. The claimant of land (Hemsi) has not been able to demonstrate his land rights (SHM), which was confirmed by the local authority that no SHM was issued to him.
- On the alleged criminalisation of farmer, the decision upheld by the court is on the theft of palm fruits by a few individuals. Police investigation has confirmed this.
PT Lestari Tani Teladan (LTL)
- Based on an NGO report, “the local community has requested about 60-100 hectares of land to be enclaved from the HGU (LTL’s operating permit)”. This is consistent with PT AAL operating with legal operating permit.
- As an ISPO certified mill, the price of FFB is determined according to Dinas Perkebunan (local authority in Indonesia) which ensures transparent FFB pricing.
PT Agro Nusa Abadi (ANA)
- Based on clarification, 730 ha of land is still in the process of completing compensation. It is a common legal process for compensation and acquiring ILOK/IUP/HGU (operating permit), ANA has demonstrated evidence that they are abiding by the laws and due process.
Apical continues to monitor the development of this case. Meanwhile, we reaffirm a prudent approach and ensure no sourcing from the reported subsidiaries of PT AAL enters into Apical’s supply chain until significant progress is made on the alleged violations or the case is resolved.
April 2023
PT AAL has published a response statement in clarifying allegations raised by complainants.
PT AAL also committed to appoint an independent third party to review the allegations and to publish the findings of the investigation. On March 31st, PT AAL made an announcement that EcoNusantara has been appointed as a third party verifier for a period of 6 months, starting April 2023.
Apical continues to monitor the progress of this case and will engage with PT AAL management to follow up on the commitments and progress of the investigation.
November 2023
Since engagement with EcoNusantara in April 2023, PT AAL published 15 progress updates regarding the 3 party verification. Subsequently, a joint PT AAL and EcoNusantara Verification Report was published which highlighted the following:
A study was carried out with relevant stakeholders and in parallel data collection on farmers’ land claims was carried out through:
- In depth interviews
- Identifying perceptions of parties to alleged problems
- Collecting and tracing the legality of documents and tracing history of land ownership
- Validation by government authority with parties
Here are some of the key findings from the verification:
i. PT Lestari Tani Teladan (PT LTT)
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Claim: PT LTT has seized 100 ha of community land and community had requested for 60ha of land to be released by the company through the regency government
Finding: Community was asking for 4 ha of land for a public cemetery and 10 ha for a residential reserve area
Recommendation: PT LTT to explore ways of accommodating the communities request for 14 ha of land for cemetery grounds and residential areas in conjunction with village officials and local government -
Claim: PT LTT has seized 1,505 ha of community land and the company has been operating in 321 ha of land outside the HGU concession
Finding: HGU documents that Walhi/FoE documents were not the same HGU documents possessed by PT LTT issued by BPN
Recommendation: It is recommended that FoE/Walhi provide further supporting evidence in relation to the HGU documents - There was a documented attempt to resolve disputes with the community in Feb 2002 after which PT LTT agreed to fulfil 7 requests made by the community during 2022 – 2005.
- PT LTT does not have a plasma plantation and the HGU permit was obtained before the obligation for plasma plantations came into effect.
- Finding: There is a difference in the results of the laboratory tests on the well water of the Towiora Village by the Environmental Service (Dinas Linkungan Hidup- DLH) of the Donggala Regency compared to the laboratory results on 6 samples at the PT LTT monitoring well issued by the Industrial Reach and Development Agency of Makassar. Lab testing by DLH was based on 1 community well sampling point.
Recommendation: It is advised that PT LTT take a proactive measure in ensuring that the complaints are handled properly at the field level and that there is involvement of key parties, experts and relevant government and communities for acceptance and accountability.
ii. PT Mamuang
- Claim:
• Land claims on Block C26 by Hemsi based on 22 documents of Land Transfer Letters and 9 SHM’s obtained from 2017 to 2019.
• Hemsi has been detained 3 times by Pasangkayu and North Mamuju police
Finding:
• After analysis, object of dispute discovered to be outside Block 26 HGU of PT Mamuang
• No facts found to support that there has been systematic acts carried out by PT Mamuang without any legal basis or rational reasons as a basis
Recommendation:
• There should be improvements in relations between PT Mamuang and Hemsi to be carried out in a peaceful approach and programs to improve welfare of the surrounding communities to be intensified - Claim: Land claims on Blocks C14, C15, C16,17 and C22 (172 ha) by the Sinar Rio Jaya (SRJ) Farmers Group based on claim on transmigration reserve land, a copy of a letter from PT Mamuang and a Land Statement Letter (SKT) issued in 2004
Finding:
• The SKT is registered under Donggola Regency (Central Sulawesi) whereas the HGU location is in Pasangkayu Regency (West Sulawesi);
• The 2 individuals that signed the SKT were not authorised to do so at that time
• The SKT is not in compliance with the Decree of the Governor of Central Sulawesi dated Jan 1993
Recommendation:
• PT Mamuang establish a good relationship with SRJ Farmers Group through more intensive program approaches - Claim:
• Land claims by parties on behalf of the Tado Kabuyu (TK) Indigenous Community in Dusun Kabuyu
• PT Mamuang seized 2,302 ha belonging to TK community
Finding:
• There are about 113 families of the TK community living in the area following customary rules and conduct farming along Pasangkayu river and have been living in Dusun Kabuyu for a long time
• The Kabuyu village covers approximately 250 ha and was never a part of PT Mamuang’s HGU. Most of the original TK community does not own the land as it has been sold to immigrant communities
Recommendation:
• Interested parties should provide more detailed and precise data to confirm the object of the claim
• PT Mamuang is advised to continue to intensify programs that can improve the welfare of the TK community so that they receive the same opportunities as other Indonesian people
iii. PT Agro Nusa Abadi (ANA)
- Findings:
• In 2014, PT ANA obtained a renewal of the location permit for an oil palm plantation covering an area of 7,244.33 Ha in Petasia Timur District, North Morowali Regency which includes 7 villages. There is still land recognition on the PT ANA oil palm plantation business permit by the community in each of these villages in order to resolve land recognition disputes. Compensation for 3,680.21 Ha of land with SKT/SKPT rights has been carried out, leaving 730.80 Ha of land without compensation spread over 4 villages.
• In 2021, PT ANA obtained a renewal permit for an oil palm plantation business in Petasia Timur Sub-district, North Morowali Regency covering an area of 7,035.97 Ha which includes 7 villages. To follow up on the HGU processing, PT ANA submitted an HGU application based on a clean and clear village administrative area, including 3 villages. Currently, one of the conditions for the issuance of the PT ANA HGU Decree for all 7 villages, has been issued on September 22, 2023. PT ANA is waiting for updates regarding the issuance of the HGU Decree.
• From investigations carried out, both reviewing documents and interviews with parties, both government and company, it was confirmed that until the time the verification was carried out, PT ANA did not have an HGU. This is due to the fact that the HGU can only be given when all disputes on the land have been settled by the government. There is complexity in this process due to multiple validation and verification that produced different results and non-clarity on boundaries and markers. The HGU application process has been carried out by PT ANA since 2007.
• At least 28 community members stated that they owned land within PT ATA palm plantation area with a total area of 1,695.27 Ha spread across 4 villages. It was identified that 795.13 hectares of the total claim land area was land that still overlapped between communities.
Recommendation:
• PT ANA and AAL to involve key parties including the government, community and NGO/other groups to move towards a resolution that is accepted by all parties
• The involvement of the government as a mediator is strategic with regards to overlapping land rights claimed
• PT ANA and AAL to complete the process of HGU once the permit area is clear and clean with the necessary legalities in place
February 2024
PT AAL has announced that it has re-appointed EcoNusantara to develop an Action Plan to implement the recommendations of the Verification Report, based on the allegations raised by Friends of the Earth in 2022.
April 2024
PT AAL has announced that they will be establishing an action plan to follow up on the Verification Report that was published by EcoNusantara. The Action Plan is being reviewed by the Robertsbridge team.
