Half of Indonesia's oil palm plantations foreign-owned

Antara 13 May 11;

Jakarta (ANTARA News) - The Environmental Forum of Indonesia (WALHI) says fifty-percent of the country`s oil palm plantations are owned by foreign parties.

"Fifty percent of oil palm plantations in Indonesia are controlled by Malaysia, Singapore, the US and Belgium," WALHI`s food and water campaign manager M Islah said in a written statement issued here on Friday.

He said Indonesia has the largest oil palm plantations in the world but he thought it had no sovereignty in the sector.

He said the crisis in food sovereignty adds to various policies issued before such as conversion of land for industrial and mining development causing three million hectares of agricultural land to turn into other functions.

"Even right now in Java island average agricultural land ownership has been only 0.25 hectare per family," he said.

WALHI also spotlights three other policies namely Law Number 41 of 2009 on sustainable agricultural land protection and Government Regulation Number 18 of 2010 on plant cultivation system which it has considered providing room for big industries to take over agricultural land.

The organization has also criticized the government`s to invite investors from the Association of Southeast Asian Nations (ASEAN) to enter Papua under the food estate scheme.

Agriculture Minister Suswono earlier called for NGO activists stop conducting black campaign that hurts ASEAN palm oil industry especially Indonesia`s.

"A number of demands for Indonesia to improve its system of plantation development and palm oil processing to avoid environmental concerns have already been met. But if black campaigning still continues I think there constraints to enter the European Union markets will remain that will affect the continuation of the country`s palm oil industry," he said after attending the ASEAN Economic Community Council and European Union Commissioner for Trade meeting here on May 6.

He said the ASEAN CPO product has actually been the best prepared to enter into a free trade because of its competitiveness and because the tropical region`s product has exclusive characteristics not found in European countries.

Indonesia`s Crude Palm Oil production until now are still facing barriers to enter some European markets, which are related to environment concerns especially forest destruction in view of climate change.

According to data of the Federation of Indonesia Palm Oil Producers (GAPKI) Indonesia in 2011 is expected to produce up to 22 to 22.5 million tons of CPO with exports projected to reach 16.5 to 19 million tons. (*)

Editor: Aditia Maruli