* Cases stand at 660 versus 146 in 2004-social activist
* More cases seen as industry expands further
* Industry body new rule may help; planters not keen
Niluksi Koswanage Reuters 9 Nov 10;
JAKARTA, Nov 9 (Reuters) - Conflicts between Indonesian communities and palm oil firms over land use have more than quadrupled to 660 cases in the past six years as the industry aggressively expands, a social activist said on Tuesday.
These incidents may grow so long as Indonesia, the No.1 palm oil producer, uses a law to promote the industry's expansion, said Norman Jiwan of the social non-govermental organisation SawitWatch that tracks the cases.
Jiwan said the Plantation Act, made law in 2004, has not helped poor Indonesian farmers and local communities, forced off their land by authorities and companies wanting to develop palm oil production.
Land ownership is an emotive issue in the Southeast Asian country where 40 percent of a population of 220 million depends on agriculture and where land is a farmer's only social security.
"In some of the cases, the people don't want oil palms to enter their lands but they get bulldozed over by the company," Jiwan told Reuters at the sidelines of the Roundtable on Sustainable Palm Oil (RSPO) in Jakarta.
"Once the land belongs to the palm oil company, it is the locals who become the criminals. Under the Plantation Act, a palm oil company can call private or state security to prevent the locals from accessing and taking back the land that belonged to them in the first place."
PROTESTS
Jiwan said in the past three months, more than 100 Indonesians were arrested for what was described as criminal behaviour against planters during protests over forced land acquisition, unfavourable compensation and other issues.
The RSPO, which groups planters, NGOs and consumers and formulates standards for the industry that include commitments to preserve forests and engage constructively with local communities, may provide a means of breaking the impasse.
The industry-driven body has now included a new policy that requires planters to get community feedback prior to opening up new lands, a measure that planters do not favour as it disrupts long-term operational plans. [ID:ID:nSGE69S09Z]
"The planters are always asking for a period of adjustment but they need to realise the impact of their actions on forests and communities is very immediate," Jiwan said.
Planters said some of the communities' claims on the land were unfounded. Such conflicts have stalled planters' plans to expand and can potentially delay foreign investment, they say.
"Some firms will not get top marks for engaging with local communities, but sometimes it's hard to operate when suddenly a claim comes in from someone who has not even been in the areas," said a Malaysian planter with land in Indonesia, who declined to be identified. (Editing by Ron Popeski)
