Winner | Asian Digital Media Awards 2020

State-owned plantation company in Indonesia intimidates, evicts and plants oil palm without permits

As Indonesian President Joko Widodo is rolling out an ambitious land reform programme, state-owned plantation company PTPN XIV is evicting farmers to make room for an oil palm estate in Sulawesi despite not having a permit to do so.

One day in March last year, Rahim was shocked and furious to find an excavator rolling through his rice field, turning the bright green grains into piles of mud. The 51-year-old farmer took photos of the incursion and demanded to know why his family’s livelihood was being uprooted.

Rahim had been farming the land for 15 years, but the workers on the scene said he was trespassing on land that belonged to a company. No company held a license to operate there, much less evict residents, but Rahim didn’t know that. Now he was being told that rows of oil palm trees would be planted where his rice was growing.

“When I can’t farm rice, how is my family supposed to eat?” Rahim said at his home in Maroangin, a village on the eastern Indonesian island of Sulawesi. The father of four recalled having cried as he watched the rice, almost ready to harvest, disappear before him. A harvest that size could have supported his family for months. Many of his neighbours also reported having their farms and pastures taken over by the company, state-owned PT Perkebunan Nusantara (PTPN) XIV.

Like countless other farmers across Indonesia, Rahim doesn’t have a deed to the land he says his family has occupied for generations. That leaves him with a scant legal defence to claims laid on it by the state or private companies.

We’ve gotten some pushback from the local residents. I don’t know the reason, because they don’t have title to the land.

Muslimin, district chief, Maroangin

But that doesn’t explain why PTPN XIV felt empowered to demolish farms and cattle ranches, because it, too, lacks the permits required to operate in Maroangin. Nonetheless, the firm has gone ahead and planted 8 square kilometres (3 square miles) of oil palms on land formerly occupied by corn farms, rice paddies and pastures.

Several months after President Joko Widodo ordered a freeze on the issuance of permits for palm plantations, PTPN XIV has started an entirely new business without any of the approvals required by law, eased along as a state-owned company. It has made a travesty of the permit process, operating outside the law, according to government officials and other observers.

The case provides an example of how malleable the rules can be in Indonesia for powerful interests with an eye on community lands, even as Widodo strives to bring the nation’s chaotic land-tenure situation under control. Indonesia, home to thousands of islands spread across one-eighth of the earth’s circumference, is rife with competing claims over who has the rights to land and resources.

Last December, the Indonesian government reached an important milestone in addressing this problem when it published the first version of a long-awaited, unified map of land-use claims and internal borders. But much data is still missing from the map, including maps of indigenous territories and company concessions.

Meanwhile, the Ministry of Agrarian and Spatial Planning has refused to release maps of lands where companies hold licenses to plant oil palm, despite a 2017 Supreme Court ruling ordering it to do so. Last week, activists threatened to report the minister for criminal conduct if he continued to withhold the data.

“There should be no special path [for state-owned companies],” says Henri Subagiyo, executive director of the Indonesian Center for Environmental Law (ICEL). “The requirements are supposed to be met before operation [begins]. But without transparency, it is difficult to control the system.”

In 2003, the land near Rahim’s home suddenly opened up. PTPN XIV had raised cattle and farmed tapioca there for the past 30 years, but its lease had just expired, leaving the 52-square-kilometer (20-square-mile) concession unattended.

Thousands of farmers moved in, planting corn and rice and grazing cattle. Many families, including Rahim’s, grew to depend on the income from working the land, as residents had done before the company first arrived in 1973.

Under Indonesian law, if a plantation company’s right-to-cultivate permit, known as an HGU, is not extended after the initial 30-year term, the land reverts to state control. Jemmy Jaya, a spokesman for PTPN XIV, told Mongabay at his office in Makassar, the capital of South Sulawesi province, that the company still holds the rights to the land because it too is state-owned.

Since farmers were trespassing on the land, Jemmy said, the firm had called on Indonesia’s anti-riot police, known as Brimob, to “handle” the situation. In 2016, men with rifles strung across their chests began visiting the homes of Rahim and many others.

Last August, locals reported the intimidation to the provincial government, and the visits stopped. But they started up again this past February, with officers ordering residents to vacate the land.

“They asked me if I was ready to die for my land,” Rahim recalled of his own encounter with the Brimob officers. “I said yes, because I won’t be able to support my family anyway.”

Jemmy acknowledged the company had yet to obtain an HGU, or any of the other permits it needed to plant oil palm in its former concession. But he said the firm had secured the necessary permissions to operate in the form of letters from Muslimin Bando, the head of Enrekang district, where the land sits.

In Indonesia, district heads have the authority to issue key permits for palm plantations. Jemmy said the Enrekang chief had provided letters saying the firm would get permits in the future, though he declined to provide a copy when asked. “Why do I have to show you?” he said.

“The community there should be grateful that we let them use the land for 15 years without asking anything in return,” Jemmy said.

District chief Muslimin confirmed he had reached what was essentially a handshake agreement with the company, believing it would benefit the district.

“We’ve gotten some pushback from the local residents because—well I don’t know the reason, because they don’t have title to the land,” Muslimin said in an interview.

Saparuddin, 40, a farmer whose 20-hectare (49-acre) cattle farm is now covered in the company’s palms, learned from his parents a different history that portrays PTPN XIV as the guests on the Manhattan-sized concession.

“When the company came, my parents met with them,” Saparuddin said in Maroangin. “They agreed that the company would borrow the land from the community. Then after 30 years, they would give it back.”

This story was published with permission from Read the full story.

Thanks for reading to the end of this story!

We would be grateful if you would consider joining as a member of The EB Circle. This helps to keep our stories and resources free for all, and it also supports independent journalism dedicated to sustainable development. For a small donation of S$60 a year, your help would make such a big difference.

Find out more and join The EB Circle

blog comments powered by Disqus

Most popular

View all news

Industry Spotlight

View all

Feature Series

View all
Asia Pacific's Hub For Collaboration On Sustainable Development
An Eco-Business initiative
The SDG Co