Processes of large-scale oil palm development on native customary land in Sarawak: a rural livelihoods approach Sunny Sanderson MPhil (BSc), BA A thesis submitted for the degree of Doctor of Philosophy at The University of Queensland in 2017 School of Agriculture and Food Sciences Abstract The oil palm boom has resulted in an unprecedented rate of expansion in the Malaysian state of Sarawak. The planted area increased by 40 percent from 2010 to 2015, from 1.0 to 1.4 million hectares, with an ambitious plan to further increase this figure to two million hectares by 2020. However, the profitability and continued growth of this boom crop are heavily reliant on two key factors: an abundance of land and labour. The first depends on the conversion of large tracts of Native Customary Rights (NCR) land. In 2016, there was officially estimated to be 1.5 million hectares of NCR land in Sarawak, of which 328,000 hectares had been converted to oil palm, and a further 500,000 hectares was targeted for conversion. There are two main State agencies specifically tasked with large-scale oil palm development on NCR land: the Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) and the Land Custody and Development Authority (LCDA). The former implements managed smallholder schemes implemented by a public agency, and the latter negotiates joint venture schemes with private plantation companies. The second key factor for expansion is continued access to Indonesian migrant labourers, who make up 80 to 90 percent of the plantation workforce. The rapid expansion of oil palm plantations in Sarawak has raised fundamental questions about the institutional arrangements in place to access NCR land for large-scale conversion, especially those that embrace the private sector. This, in turn, has highlighted issues around how scheme participation is experienced by NCR landowners and what are the outcomes of participating. It also raises the need to understand the conditions for the foreign migrant labourers isolated within these plantations. These questions were addressed by undertaking in- depth case studies of a SALCRA project and an LCDA-brokered joint venture project with the global plantation company Rimbunan Hijau in south-western Sarawak. The studies were based on 90 semi-structured, in-depth interviews with NCR scheme participants, 26 interviews with Indonesian migrant labourers, and interviews with a wide range of key informants. In addition to the two main case-study sites, a further seven oil palm estates and 13 participating villages were visited with the relevant scheme officials. The research found that the expectations and outcomes of participation did not always match. In the case of SALCRA, there was a broad range of outcomes. Some well-connected participants had access to good employment opportunities, received substantial dividends, and received formal land titles, while others had received no financial returns, no land titles, and few attractive employment opportunities, even after a decade of participation. However, even 2 though such managed smallholder schemes implemented by public agencies were slow to progress, key benefits were still assured. However, the outcomes of participation in the joint- venture scheme implemented by Rimbunan Hijau were largely negative. NCR landowners felt deceived, and conflicts, blockades, court cases, and loss of land were commonplace. The case study further revealed that the close relationships between senior politicians and Rimbunan Hijau were detrimental to NCR participants. In the case of Indonesian labourers, they were found to suffer low wages, long hours, and difficult conditions. Legal migrants were preferentially recruited from the distant islands of the Indonesian archipelago, passports removed, and movement highly restricted. Conditions for illegal workers varied, from daily movement back-and-forth across the international border, to extremely harsh conditions and the risk of severe punishment. Large-scale agricultural development projects are often heralded as the best method to improve rural livelihoods. The findings of this research are significant because they highlight the risks for NCR landowners, and migrant labourers, who participate in large-scale oil palm development projects in Sarawak. They also cast doubt on whether the large-scale conversion of NCR land in Sarawak is for the benefit of rural communities, or simply a mechanism to gain access to the last large tracts of suitable land for private gain. These findings are relevant to other indigenous communities with untitled land in regions subject to the same development pressures. 3 Declaration by author This thesis is composed of my original work, and contains no material previously published or written by another person except where due reference has been made in the text. I have clearly stated the contribution by others to jointly-authored works that I have included in my thesis. I have clearly stated the contribution of others to my thesis as a whole, including statistical assistance, interview design, data analysis, significant technical procedures, professional editorial advice, and any other original research work used or reported in my thesis. The content of my thesis is the result of work I have carried out since the commencement of my research higher degree candidature and does not include a substantial part of work that has been submitted to qualify for the award of any other degree or diploma in any university or other tertiary institution. I have clearly stated which parts of my thesis, if any, have been submitted to qualify for another award. I acknowledge that an electronic copy of my thesis must be lodged with the University Library and, subject to the policy and procedures of The University of Queensland, the thesis be made available for research and study in accordance with the Copyright Act 1968 unless a period of embargo has been approved by the Dean of the Graduate School. I acknowledge that copyright of all material contained in my thesis resides with the copyright holder(s) of that material. Where appropriate I have obtained copyright permission from the copyright holder to reproduce material in this thesis. 4 Publications during candidature Book chapter: Sanderson, S. (2016). Malaysian oil palm and Indonesian labour migration: a perspective from Sarawak. The Oil Palm Complex: Smallholders, Agribusiness and the State in Indonesia and Malaysia. R. Cramb and J. McCarthy. Singapore, NUS Press: 378-408. Publications included in this thesis Sanderson, S. (2016). Malaysian oil palm and Indonesian labour migration: a perspective from Sarawak. The Oil Palm Complex: Smallholders, Agribusiness and the State in Indonesia and Malaysia. R. Cramb and J. McCarthy. Singapore, NUS Press: 378-408. Incorporated as Chapter 6. Contributor Statement of contribution Sunny Sanderson (Candidate) Wrote the book chapter (85%) Professor Robert Cramb (Supervisor) Wrote and edited the chapter (15%) 5 Contributions by others to the thesis Professor Cramb has given me continued advice and direction through his role as my primary supervisor. Statement of parts of the thesis submitted to qualify for the award of another degree None 6 Acknowledgements I want to give my deepest thanks to the wonderful people of Opar, Selampit, Sebandi Hulu, and Sebandi Hilir; it was a privilege to spend time in your beautiful villages. I want to especially thank Wilda ak Losen and Boneng ak Sawek in the Bidayuh village Opar; Saut ak Nowit and Agie ak Mitap in the Bidayuh village Selampit; Labok ak Baie and Palau ak Bunjai in the Iban village Sebandi Hulu; and Jakong ak Rama and Jaba ak Gadang in the Iban village Sebandi Hilir you opened your doors and made me feel at home. I want to sincerely thank the staff of SALCRA, especially Polly Ateau and Joseph Blandoi, who always showed me such kindness, patience, and understanding. I also wish to thank the staff of the Ministry of Land Development, LCDA, and FELCRA who were so generous with their time. Special thanks to my Sarawakian friends who have become like family: Patricia Nayoi, how right Rob was when he thought that you and I would get along. Christine Horn, you gave me a home-base during my year in Sarawak. I still miss our kitchen dinner catch-ups, talks and walks with Dunia. Narong Daun, thank you for all your wise words, kindness and company. And finally, Sara Wong, from the second I saw you with that massive ‘Birds of Borneo’ book I knew we would be friends. To my supervisor Professor Rob Cramb, I will always be grateful that you introduced me to Sarawak, and what a place it is. I am also still, after ten years, so inspired by your work. You write in a way that only deep knowledge, experience, and true empathy can bring. You give a strong voice to the plight of native customary landowners. In Patricia’s Bidayuh-Biatah: Terima kasih yun panyinyabar mai, Thank you for your patience, terima kasih yun panyibijak mai, thank you for your wisdom, pak rabis- i yun but above all terima kasih sebab kaam mun buka batuh ku. thank you for opening my eyes. Thank you Mum, David, Mbak Jenny, family and friends, who have given me unwavering support and helped me to remember that there is a world outside of the ‘bubble’. To my boys, Flynn, six-years-old and Marco four, all too often you have heard ‘Mummy is doing her thesis’, here is to having our weekends back again. This has been a long road, but hopefully it will show you that learning is a gift, a lifelong journey. And to Anand, you are my rock. Here is to the unknown, our next adventure, and thank you so very much for stopping. 7 Keywords oil palm, managed smallholders, joint ventures, land grab, migrant labour Australian and New Zealand Standard Research Classifications (ANZSRC) ANZSRC code: 161604, Human Geography, 60% ANZSRC code: 161606, Political Science, 40% Fields of Research (FoR) Classification FoR code: 1604, Human Geography, 60% FoR code: 1606, Political Science, 40% 8 Table of Contents List of Figures ................................................................................................................