MIDCOURSE MANOEUVRES: Community strategies and remedies for natural resource conflicts in Indonesia 1 Contents Acknowledgments ......................................................................................................................................................................... 2 Abbreviations .................................................................................................................................................................................... 3 1. Introduction ........................................................................................................................................................................................ 5 2. Land Governance in Indonesia ................................................................................................................................................... 6 3. Land Use Change ..........................................................................................................................................................................15 4. Impacts of Land Use Change ...................................................................................................................................................21 5. Land Conflicts .................................................................................................................................................................................28 6. Strategies for Seeking Remedies ...........................................................................................................................................31 7. Outcomes and Resolution ..........................................................................................................................................................42 8. Conclusion........................................................................................................................................................................................52 References .......................................................................................................................................................................................54 Land transformations in Central Kalimantan .....................................................................................................................65 Cases of conflicts arising due to oil palm plantations ....................................................................................................66 Case Study I: Plasma partnership in BGA oil pam plantations in West Kotwaringin .........................................67 Case Study II: Illegal oil palm plantation of Rejeki Alam Semesta Raya in Kapuas ...........................................78 Case Study III: Community response to Arjuna Utama Sawit’s oil palm operations ..........................................88 in Katingan district Cases of conflicts arising due to Coal Mining ....................................................................................................................97 Case Study VI: River and dust pollution by KGLR/BNJM in East Barito .................................................................98 Case Study V: PT AKT: The Biggest Mining Company of Borneo .............................................................................107 Annexure I: Questionnaire administered to collect data for the case studies ......................................................115 Acknowledgments The study was made possible with the support from International Development Research Center (IDRC), Ottawa, Canada. We would like to thank the following people and organisations who have helped in project design, data collection and fieldwork for this study: Kanchi Kohli from CPR, Kuruniawan Sabar from Namati; Arie Rompas, Stick Slanker, Dimas Hartono from WALHI Central Kalimantan, Pradarma Rupang from JATAM East Kalimantan; Father Sani Lake, Bama Adiyanto, Meta Septalisa, Pinarista Juliana from JPIC; Ward Berenschot from KITLV; Gino Cocchiaro from Natural Justice; Lina Karoline; Johannes Jenito; Aliza Yuliana from Solidaritas Perempuan; Raynaldo, Rayhan and Isna from Indonesian Center for Environmental Law; Grahat Nagara from Auriga; Sri Palupi from Institute for Ecosoc Rights; Ahmad Martin Hadiwinata from KNTI; Erwin from HUMA; Wahyu Nandang from YLBHI; Yaya from WALHI Jakarta; Budi Afandi from JATAM-Jakarta; Carlo Lumban Raja from Sawit Watch; Arman from Betang Borneo Foundation; Afdah Nordin from Save Our Borneo; GreenPeace Southeast Asia; Dadut from AMAN; and Yanedi Jagau from Borneo Institute. A special word of thanks is also due to all the community members who agreed to be interviewed for the study. -Meenakshi, Manju and Vidya 2 AbbrevIatIons AKT Asmin Koalindo Tuhup IDR Indonesian Rupiah AMAN Aliansi Masyarakat Adat Nusantara ILC International Land Coalition AMDAL Analisis Mengenai Dampak IMF International Monetary Fund Linkungan IPK Ijin Penebangan Kayu APL Areal Penggunaan Lain IPL Izin Pembukaan Lahan AS3K Alliansi Sei Ahas Kalumpang IPR Izin Pertambangan Rakyat Katimpun Kaladan IUP Izin Usaha Pertambangan AUS Arjuna Utama Sawit IZUPK Izin Usaha Pertambangan Khusus BAL Basic Agrarian Law JATAM Jaringan Advokasi Tambang Mining BAPPENAS Badan Perencanaan Pembangunan Advocacy Network Nasional JBIC Japan Bank for International BGA Bumitama Gunajaya Abadi Cooperation BNN Berita Nasional Narkoba JPIC Justice Peace and Integrity of Creation BPN Badan Pertanahan Nasional JPIK Jaringan Pemantau Independen BRG Badan Restorasi Gambut Kehutanan BRIMOB Mobile Brigade Corps KFCP Kalimantan Forest Carbon CCOW Coal Contract of Works Partnership COW Contract of Works KKPA Kredit Koperasi Primer Anggota CPO Crude Palm Oil Km Kilometre CSR Corporate Social Responisbility KNTI Ketua Harian Dewan Pengurus DPMPTSP Dinas Penanaman Modal dan Pusat Kesatuan Nelayan Tradisional Pelayanan Terpadu Satu Puntu Indonesia Kobar Kotawaringin Barat (West) DPRD Dewan Perwakilan Rakyat Daerah Komnas HAM Komisi Nasional Hak Asasi Manusia EIA Environment Impact Assessment KPA Konsorsium Pembaruan Agraria FBB Fresh Fruit Bunches KPK Komisi Pemberantasan Korupsi FDI Foreign Direct Investments KPP Kawasan Pangambangan Produksi GDP Gross Domestic Product KPPL Kawasan Pemukiman dan GLC Global Land Cover Peruntukan Lainnya Ha hectares KUD Koeprasi Unit Desa HCV High Conservation Value KYMUP Koperasi Yang Melakukan Usaha HGU Hak Guna Usaha Perkebunan HP Hutan Produksi LBH Lembaga Bantuan Hukum HPK Hutan Produksi Konversi MBTK Maloy Batuta Trans Kalimantan ICEL Indonesian Centre for Environmental MEMR Minister of Energy and Mineral Law Resources 3 MP Member of Parliament REDD Reducing Emissions from MP3I Masterplan Percepatan dan Deforestation and forest Degradation Perluasan Pembangunan RMU Rimba Makmur Utama Ekonomi Indonesia RPJMN Rencana Pembangunan Jangka MPR Majelis Permusyawaratan Rakyat Menengah Nasional MRP Mega-Rice Project RSPO Roundtable on Sustainable Palm Oil Plantation MW Mega Watt SEZ Special Economic Zones NA Not Available STMT Sarikat Tani Manggatang Terung NES Nucleus Estates and Smallholders TBP Tanjung Buyu Perkasa OAT Organisasi A’Taimamut TGHK Tata Guna Hutan Kesepakatan PERHUMAS Perhimpunan Hubungan Masyarakat THEP Tata Hamparan Eka Persada PILNET Public Interest Lawyers’ Network UHP Usaha Handala Perkasa PIR Perkebunan Inti Rakyat UKL Upaya Pengelolaan Linkungan PKP2B Perjanjian Karya Pengusahaan UNFCCC United Nations for Climate Change Pertambangan Batubara UPL Upaya Pemantauan Linkungan PLTU Pembangkit Listrik Tenaga Uap UUPA Undang Undang Pokok Agraria PPDI Pejabat Pengelola Dokumentasi WALHI Wahana Lingkungan Hidup dan Informasi Indonesia PPHMHA Pengakuan dan Perlindungan Hak WIUP Wilayah Izin Usaha Pertambangan Masyarakat Hukum Adat WIUPK Wilayah Izin Usaha Pertambangan PR Presidential Regulation Khusus PT Perseroan Terbatas WPN Wilayah Pencadangan Negara RASR Rejeki Alam Semesta Raya WWF World Wildlife Fund 4 1 Introduction Over the last 50 years, most Asian countries have gone through a shift from subsistence agricultural systems to industrialised economies. But few have been as turbulent as Indonesia. The history of Indonesia’s land and natural resources is tied to the swings in the country’s political regime. Following intense political instability since independence, President Sukarno’s ‘Guided Democracy’ system attempted to establish a nationalist approach to protect the young nation from domination by Western countries. With the Basic Agrarian Law (BAL) 1960, foreign ownership of land was disallowed. But this too failed to achieve stability or economic growth. In 1966, General Suharto successfully staged a military coup. Under his presidency, Indonesia experienced the “New Order”. A key aspect of this regime was trade and industrial expansion, which allowed an economic growth of seven to eight percent each year. Changes were made to foreign and domestic investment laws to facilitate growth. The New Order removed most controls on private investments. By ending government subsidies and preferential access to funds for state owned banks and state owned enterprises it curtailed their activities. A new Foreign Investment Law of 19671 opened the country to Foreign Direct Investments (FDI) (Wie 2006). Foreign loans through the International Monetary Fund (IMF) and World Bank were made easily accessible (Awang 2006). The Asian economic crisis of 1997 brought Indonesia’s economy to a collapse and this unleashed political protests against the New Order. Civil society demanded