M. Ajisatria Suleiman, Jakarta Globe 22 Jun 09;
The management of natural resources has always been a hot issue for debate and will feature prominently in the upcoming presidential election. The debate over a neo-liberal economy versus a people-oriented economy has successfully spiced up the politicking. Among the hot buttons of debate is the management of oil and gas, which have always been at the center of political attention, attracting state institutions and politicians to involve themselves in the process, the most important aspect of which is the renegotiation of oil and gas contracts.
It is unfortunate that society does not award the management of other major natural resources, namely coal mining and palm plantations, the same attention so that the public might share its opinion on what should be done. Generalizing the issues will only create a piecemeal approach to natural resources reform as each sector has its own obstacles and opportunities.
It is strongly advised that the issue of palm plantations be addressed during the debates ahead of the presidential election. As the world’s largest producer of crude palm oil, and considering the global demand for the commodity, Indonesia is in a position to capitalize on both the global and domestic markets in order to reach the maximum — yet sustainable — gain from the palm oil industry for the welfare of its people. Palm plantation development also covers various aspects of legal, political, social, economic, human rights and environmental issues, so any novel ideas proposed by any candidates would display a comprehensive understanding of Indonesia’s development.
Furthermore, one may agree that the boldest issue of this presidential election is the contest between the so-called neo-liberalist economy and the people-oriented economy. Based on the 1945 Constitution, one of the important features of a people-oriented economy is that the economy is organized as a common endeavor based upon the principles of the community. This idea is generally delivered as a jointly-owned and democratically-controlled cooperative system. However, to date, the cooperative system in Indonesia remains underdeveloped and only contributes a very small part to the country’s economic development.
In this regard, the debate on the palm plantation industry will include the empowerment and partnership of palm companies, small palm estate-holders, palm workers and, most important, cooperatives.
According to the prevailing law on plantations, a company is required to establish a cooperation with land owners who are willing to cultivate their land. They will receive training, a supply of seeds and loan support from the company; in exchange, they will have to sell their product back to the company. If managed properly, the company will save extra money as it is not required to pay palm workers or to acquire the land.
It will be interesting to observe the view of the presidential candidates on how to empower and expand this partnership scheme to improve the living conditions of the people working and living on the plantations.
However, one must not close their eyes to the negative impact resulting from palm plantations. Land conversion of primary forests, rice fields and peatland into plantations is regarded as contrary to the efforts of the fight against climate change, as forests and peatland are two of the world’s top weapons in fighting global warming.
If the above issues were to be publicly debated and discussed, they would trigger national discourse on many issues, such as the long-awaited agrarian reform program, climate change mitigation strategies and environmental protection, food security, agriculture subsidies, sustainable forest management, cultural preservation and human-rights based development.
With regard to the issues of climate change and human rights, the Indonesian palm oil industry has suffered from international attacks due to allegations of environmental degradation and abuses of the rights of local communities as well as the palm workers. This has led the European Union to impose restrictions on CPO imported from Indonesia and Malaysia.
However, the increasing global awareness of CPO issues indicates that Indonesia can have a significant role and strong position in international and regional forums such as the WTO, UNFCCC and Asean, as well as in bilateral treaty negotiations. Again, a visionary leader should have an international strategy to be employed for the country’s best interests.
The rapid and massive development of palm plantations has significantly changed not only Indonesia but also the world. Placing the palm oil debate at the center of the presidential election will raise many interesting issues. Most important, given their complexities, the presidential candidates will be expected to seek the most commercially strategic, environmentally friendly and human rights friendly solutions, and only those genuinely committed to a people-oriented economy will find the solutions.
M. Ajisatria Suleiman is a legal consultant at a law firm specializing in agribusiness investment. He can be reached at aji.suleiman@gmail.com .
