{"id":1181,"date":"2015-07-08T11:13:17","date_gmt":"2015-07-08T11:13:17","guid":{"rendered":"http:\/\/www.tuk.or.id\/?p=1181"},"modified":"2018-12-28T17:53:12","modified_gmt":"2018-12-28T17:53:12","slug":"palm-oil-giant-wilmar-resorts-to-dirty-tricks","status":"publish","type":"post","link":"https:\/\/www.tuk.or.id\/en\/2015\/07\/palm-oil-giant-wilmar-resorts-to-dirty-tricks\/","title":{"rendered":"Palm oil giant Wilmar resorts to dirty tricks"},"content":{"rendered":"

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\n7 July, 2015, Full Release: English<\/a> \/ Bahasa Indonesia<\/a>
\n<\/em>
\nWorld\u2019s largest palm oil trading company, Wilmar International Ltd., under scrutiny as communities accuse its suppliers of harassment, deception and rights abuses.<\/em>
\nJakarta, 8 July 2015: Oil palm giant Wilmar International Ltd.<\/a> (F34.SI \/ WLIL.SI) stands accused of resorting to \u2018dirty tricks\u2019 in its dealings with communities. The allegations come from community leaders and non-Governmental organisations who have tracked the company\u2019s operations on the ground in Borneo, Sumatra, Uganda and Nigeria<\/a>. In 2013, the company which trades some 45% of globally traded palm oil adopted a far-reaching policy to only deal in commodities with \u2018No Deforestation, No Peat and No Exploitation\u2019<\/em>. Yet reports suggest even its own operations are in violation of standards it signed up to in 2005.
\nCriminalising community leaders<\/strong>
\nIn West Sumatra, Wilmar subsidiary PT PHP1 is accused by the Minangkabau community of Kapa of criminalising them after they raised a complaint with the Roundtable on Sustainable Palm Oil (RSPO). In 2014, the community noticed that Wilmar was seeking to get a permit to take over their lands without their agreement. They formally appealed to the RSPO to stop the company obtaining a business license as this would permanently extinguish their rights. In November 2014 community members travelled to the RSPO Roundtable meeting in Kuala Lumpur, with the help of Forest Peoples Programme, to meet with the company and RSPO staff. In front of RSPO officials, Wilmar agreed to meet with community members and the government land bureau to explore alternative legal means of securing their plantation without extinguishing community rights.
\n\u201cThe company has broken its promises,\u201d complained Samsiwa Rangkayo Mudo, a Kapa community leader. \u201cWhile we were waiting to meet the land bureau, Wilmar went and got a business license behind our backs. Then we found ourselves harassed by the local police on trumped up charges\u201d. Their leader, Alman Gampo Alam was jailed for two months, during which time he was asked by the police to repudiate his lawyer and resign as community leader. \u201cOthers were intimidated and threatened with similar treatment to Gampo Alam. We know full well that the company is behind it,\u201d said Zulkifli, a Kapa community member who is seeking protection from the Committee for Protection of Victims and Witnesses (LPSK) in Jakarta. \u201cWe demand that Wilmar withdraw the business license of its subsidiary PT PHP over our land.”
\nThe police never charged Gampo Alam and he was released from jail in late June. The Kapa community, however, has lost rights to its ancestral lands that were taken over by Wilmar.
\nWorld Bank investigates bribery<\/strong>
\nIn 2011, Wilmar was subject to a complaint<\/a> to the Compliance Advisory Ombudsman (CAO – the complaints mechanism of the International Finance Corporation (IFC)) that a subsidiary, PT Asiatic Persada, of its client Wilmar paid local police to violently expel indigenous people from its palm oil concession in Jambi Province, Sumatra, which the Batin Sembilan <\/em>communities claimed was on their land. Company personnel then bulldozed 83 family dwellings into nearby creeks. The company agreed to CAO mediation to settle the dispute but the Batin Sembilan<\/em>and supportive NGOs were mystified when the negotiations took so long (and eventually failed).
\nRecently released World Bank Group documents<\/a> explain these delays. They reveal that one of the CAO mediators reported that personnel of the Wilmar group had tried to bribe him to give up information pertinent to the case. The charge of bribery was taken to the World Bank Group\u2019s Integrity Vice Presidency and then escalated to the World Bank Group\u2019s Sanctions Board. The dispute caused a chasm of mistrust to open up between the CAO and Wilmar, seriously delaying the conflict resolution process. The CAO dropped the case after Wilmar unilaterally divested itself of the company, leaving the affected communities without recourse.
\n\u201cThe Batin Sembilan are the victims of Wilmar\u2019s bribery and deceit,\u201d says Pak Nurman Nuri, a leader of the Batin Sembilan people from Sungai Bahar village. \u201cFirst we lost our lands to imposed plantations, then, when Wilmar took over the concession, it didn\u2019t honour an agreed settlement. It sent in police firing guns to scare us off our lands, and bulldozed Sungai Beruang village into the river. Then Wilmar subverted the conflict mediation through bribery and finally it sold up the concession when it could no longer avoid pressure to negotiate fairly with us. We think Wilmar still has a responsibility for the damage and loss it caused to my people.\u201d
\nBroken promises<\/strong>
\nIt transpires that Wilmar misled other communities. After a consortium of NGOs complained in 2008 to the International Finance Corporation that its client, Wilmar, was taking over community lands in Sumatra and Indonesian Borneo without their consent, the company agreed to the IFC\u2019s independent Compliance Advisory Ombudsman mediating a conflict resolution process. Some land was returned and smallholdings reinstated in two villages in West Sumatra but the communities remain critical of Wilmar:
\n\u201cIt was all just for show,\u201d says Sajingan Kecil community leader and head of the oil palm cooperative, Pak Muksidin ruefully. \u201cWe did get our smallholdings along with a business deal to repay the costs of land clearance and planting, but then the company provided no follow up. The roads have not been maintained, we can\u2019t get the palm fruits to the mill and we are just left with unpayable debts.\u201d
\nBanks and investors should not assume that companies with strong commitments in place are free of social, environmental, legal and market risks. \u201cInvestors and buyers must look very carefully at what is happening on the ground when they assess company promises of no deforestation <\/em>and no exploitation<\/em>. Wilmar\u2019s commitments are impressive on paper, but the company needs to radically improve its actual performance\u201d says Patrick Anderson, a policy advisor with Forest Peoples Programme.
\n==ENDS==<\/strong>
\nAdditional coverage<\/strong>:
\nFriends of the Earth Press Release<\/a> (July 8th 2015)
\n<\/strong>
\nExpert Contacts:<\/strong>
\nCommunity leaders (Indonesian language):<\/em>
\nZulkifli: +62 81294 025781
\nPak Nurman: +62 85378706667
\nNGOs (Indonesian and English):<\/em>
\nPatrick Anderson, Indonesia Policy Advisor, Forest Peoples Programme: + 62 812 1965 0850  Email: patrick@forestpeoples.org<\/a>
\nEmil Kleden, Pusaka, +6281311683111 kleden.emilola1@gmail.com<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

7 July, 2015, Full Release: English \/ Bahasa Indonesia World\u2019s largest palm oil trading company, Wilmar International Ltd., under scrutiny […]<\/p>\n","protected":false},"author":3,"featured_media":1186,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[13],"tags":[],"class_list":["post-1181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artikel"],"acf":[],"yoast_head":"\nPalm oil giant Wilmar resorts to dirty tricks - 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