deforestation

Deforestation and development: The hope of sustainable oil palm for Sri Lanka, Relief to plantations in Sarawak but NCR land claimants upset

Editor's note: With the rising push for corporate voluntary pledges to stop deforestation, the rise of concerns over smallholder development is no surprise. The baton of hectarage growth has earlier been handed from large corporate plantation groups to smaller corporations and smallholders. This is very evident in aggregate national data. WRI's report of a pick-up in deforestation in the broad down-trend in Brazil and Indonesia is interesting. Could this be a reaction to lower commodity prices? i.e. you need more production and area to hit your target income? Moreover, will palm oil supply-chain players be actually pressed to stop purchasing from sensitive zones and stick to their pledges for third party sourcing (certification targets 2018-2020)? Thus, if smallholders are discouraged from palm oil, will some turn other lower intensity (higher land use) activity? This would be perverse problem of this kind of voluntary sustainability policy leakage. How does REDD+ appear as a solution, so far? We'll keep an eye on this.


24 Nov 2017: The hope of sustainable oil palm for Sri Lanka


Opinion : Sustainable oil palm central to success of Sri Lanka’s plantation industry November 24, 2017 By Professor Asoka Nugawela: The superior potential of oil palm to reinvigorate the Sri Lankan plantation sector is undeniable. Growth in demand for palm oil in the world even surpasses that of tea and rubber. Unlike tea or rubber, palm oil is cheaper to produce and requires far less land, and far less investment. The only other close competitor for vegetable oil in Sri Lanka, coconut has a NSA and a COP of Rs. 40 and Rs.15 per nut respectively. However, coconut produces a yield per hectare (YPH) of only 7,000 nuts, whilst oil palm produces 18,000 kg per hectare annum.... In essence, oil palm is by far Sri Lanka’s most profitable crop. Coconut generates Rs. 175,000 per hectare per annum, while Tea and Rubber produce Rs. 45,000 and Rs. 50,000 respectively whereas oil palm generates Rs. 514,000 per hectare per annum.... Given the stark differences in the profit making potential of these crops, the only remaining question for the Sri Lankan plantation industry is whether we have the ability to establish and manage oil palm in a manner that is sustainable for all stakeholders and for the environment as a whole.... http://www.lankabusinessonline.com/opinion-sustainable-oil-palm-central-to-success-of-sri-lankas-plantation-industry/

15 Oct 2017: Relief to plantations and landowners in Sarawak, but NCR land claimants wanted their land, not compensation; Africa agriculture neglect and land grabs


Land titles remain with LCDA but natives to receive compensation 14 Oct 2017 -- Yesterday, the Federal Court panel set aside the High Court order to rectify the title and ordered the state government and Kota Samarahan Land and Survey superintendent to pay compensation to the plaintiffs, with the amount to be decided by an inquiry. Met outside the courthouse later, a tearful Nyutan said he was unhappy with the decision. “We don’t want to get compensation. We want to have our land back. “This land was inherited from our ancestors and now we have lost it,” he said, adding that the villagers hoped for a better solution to land disputes.
Read more at http://www.thestar.com.my/news/nation/2017/10/14/land-titles-remain-with-lcda-but-natives-to-receive-compensation/#ASHjMI5KBCC5ULmU.99

Hunger in Africa, Land of Plenty by Jomo Kwame Sundaram, Anis Chowdhury SYDNEY and KUALA LUMPUR, Oct 14 (IPS) -- African agricultural productivity has not only suffered, but also African agriculture remains less resilient to climate change and extreme weather conditions. Africa is now comparable to Haiti where food agriculture was destroyed by subsidized food imports from the US and Europe, as admitted by President Clinton after Haiti's devastating 2010 earthquake....Despite its potential, vast tracts of arable land remain idle, due to decades of official neglect of agriculture. More recently, international financial institutions and many donors have been advocating large-scale foreign investment. A World Bank report notes the growing demand for farmland, especially following the 2007-2008 food price hikes. Approximately 56 million hectares worth of large-scale farmland deals were announced in 2009, compared to less than four million hectares yearly before 2008. More than 70% of these deals involved Africa.... In most such deals, local community concerns are often ignored to benefit big investors and their allies in government. For example, Feronia Inc – a company based in Canada and owned by the development finance institutions of various European governments – controls 120,000 hectares of oil palm plantations in the Democratic Republic of Congo.... Most such deals involve land already cleared, with varied, but nonetheless considerable socioeconomic and environmental implications. Local agrarian populations have often been dispossessed with little consultation or adequate compensation, as in Tanzania, when Swedish-based Agro EcoEnergy acquired 20,000 hectares for a sugarcane plantation and ethanol production.
Land grabbing by foreign companies for commercial farming in Africa is threatening smallholder agricultural productivity, vital for reducing poverty and hunger on the continent. In the process, they have been marginalizing local communities, particularly ‘indigenous' populations, and compromising food security. http://ipsnews.net/2017/10/hunger-africa-land-plenty

6 Jun 2017: Sarawak activist murder - accused walk free


Bill Kayong murder: Shock and grief at court after three of the accused walk free  June 6, 2017, by Cecilia Sman http://www.theborneopost.com/2017/06/06/bill-kayong-murder-shock-and-grief-at-court-after-three-of-the-accused-walk-free/


5 Jan 2017: More pendulum swing back in 2017? Mongabay stories on Brazil Amazon mega-industrial waterways plan and Sabah forest deal. Push for legal logging harvest faces policy leakage.

Editor's note: 2H2016 there was market chatter on more Sabah forest deals, and now a write-up talks about an October 2016 sale of 100k ha there that worries NGOs. Also note the counter-trends: rising deforestation in Brazil and analysis that official data half reports tree losses (not covering land clearance in small pieces below threshold of monitoring by PRODES). For Indonesia, award of first-ever indigenous land rights (13k ha) to 9 communities; with worries of deforestation to come.

Sudden sale may doom carbon-rich rainforest in Borneo 2 January 2017 / John C. Cannon - Home to critical watersheds and orangutans, a 101,000-hectare forest located in the Trus Madi Reserve was on track to serve as a blueprint for a conservation economy, before the rights to log it were sold in October. https://news.mongabay.com/2017/01/sudden-sale-may-doom-carbon-rich-rainforest-in-borneo/

Temer government set to overthrow Brazil’s environmental agenda 21 December 2016 / Sue Branford and Maurício Torres -- Brazil’s powerful agribusiness lobby (bancada ruralista) is pushing a raft of new laws to set back environmental and indigenous protections by 30 years.... A catastrophic setback to environmental and indigenous protections was narrowly averted last week when quick action from two federal deputies prevented the agricultural lobby from forcing passage of bills to authorize construction of three mega-industrial waterways in the Amazon and elsewhere.... The Congress will likely pick up the bills again after the recess in February. They would authorize building many dozens of dams and industrial waterways in three river basins — PDC 119/2015 on the Tapajós, Teles Pires and Juruena rivers in the Amazon; PDC 120/2015 on the Tocantins and Araguaia rivers, also in the Amazon; and PDC 118/2015 on the Paraguai River.... In 2005, a similar bill was passed, fast tracking the Belo Monte dam and bypassing proper environmental evaluation. Today, Norte Energia, the consortium that built the Amazon mega-dam has been charged with environmental crimes, ethnocide and is under investigation for corruption.... Another bill working its way through the National Congress would completely gut the environmental licensing process for most infrastructure projects, while still another would take away hard won protections guaranteed to Brazil’s indigenous people in the 1988 Constitution.... https://news.mongabay.com/2016/12/temer-government-set-to-overthrow-brazils-environmental-agenda/

Illegal logging shows little sign of slowing 30 December 2016 / Morgan Erickson-Davis -- A recent report finds regulation loopholes, an uptick in organized crime, and lax land rights are allowing illegal logging to thrive.“Forestry crime including corporate crimes and illegal logging account for up to $152 billion every year, more than all official development aid combined,” said Erik Solheim, Head of UN Environment, one of the partner organizations supporting the assessment. ....It finds that bilateral trade agreements between producer and consumer countries – e.g., the European Union’s Forest Law Enforcement, Governance and Trade Action Plan (FLEGT) that requires timber products imported into the EU be legally harvested – have prompted shifts in the timber trade to less restrictive domestic markets. The researchers also found jumps in exports to India and China, which have less stringent regulations and are now the biggest importers of both legal and illegal tropical wood....https://news.mongabay.com/2016/12/illegal-logging-shows-little-sign-of-slowing/

Jokowi grants first-ever indigenous land rights (13k ha) to 9 communities, 4 January 2017 / Mongabay.com -- That movement still has a long way to go. The nine “customary forests” — known as hutan adat in Indonesian — acknowledged by President Joko Widodo’s administration last week encompass a total of 13,100 hectares (32,370 acres). But the Indigenous Peoples Alliance of the Archipelago (AMAN) has mapped more than 8.2 million hectares of customary lands it says belongs to the nation’s adat groups, as those who practice ancient modes of knowledge, belief, community and economy are called here. https://news.mongabay.com/2017/01/jokowi-grants-first-ever-indigenous-land-rights-to-9-communities/

5 Jan 2017:  Worries about Myanmar plantations expansion


The human cost of palm oil production in Myanmar - Aggressive expansion of plantations enacted in southern provinces largely ignoring environment and workers' rights. By Taylor Weidman | 04 Jan 2017 http://www.aljazeera.com/indepth/inpictures/2016/11/human-cost-palm-oil-production-myanmar-161120085639460.html

21 Dec 2016:  $3.3m in new grants to protect Kalimantan forests, 10 countries with the most protected areas (41-54% versus 14.8% for the world)


$3.3m in new grants to protect Kalimantan forests by The Jakarta Post December 14, 2016 -- The Tropical Forest Conservation Act Kalimantan (TFCA Kalimantan), a partnership program among the US government, the Indonesian government, the Nature Conservancy (TNC) and the World Wildlife Fund for Nature (WWF) Indonesia, has approved 14 new grants worth $3.3 million for local non-governmental organizations (NGOs) in Indonesia. The US Embassy in Jakarta said in a statement on Wednesday that the NGOs would work with forest-dependent communities to conserve tropical forests, protect natural resources and wildlife and improve livelihoods.... http://www.thejakartapost.com/news/2016/12/14/3-3m-in-new-grants-to-protect-kalimantan-forests.html


10 countries with the most protected areas by Melissa Breyer,  December 14, 2016 -- As of now, a mere 14.8 percent of the world’s total land enjoys protected status; which is actually a step-up from 1990 when it was just 8.2 percent. Surprisingly, one of the world’s leading oil exporters took first place for percentage of land designated as protected. Countries with the most protected areas
1. Venezuela (53.9 percent of total land area)
2. Slovenia (53.6)
3. Monaco (53.4)
4. Bhutan (47.3)
5. Turks and Caicos Islands (44.4)
6. Liechtenstein (44.3)
7. Brunei Darussalam (44.1)
8. Seychelles (42.1)
9. Hong Kong (41.8)
10. Greenland (41.2)
http://www.treehugger.com/conservation/10-countries-largest-amount-protected-land.html#14821524277441&action=collapse_widget&id=0&data=

12 Dec 2016: Deforestation increasing in Brazil, Are Brazil's Deforesters Avoiding Detection?

Editor's note: Did Brazil's official PRODES data underestimate 900,000 ha of deforestation? Read Conservation Letters, Are Brazil's Deforesters Avoiding Detection? by Peter Richards et al. 

With deforestation increasing in Brazil, will Norway ask for its US$1 billion REDD money back? Chris Lang  8 December 2016 -- On 29 November 2016, Brazil’s National Institute for Space Research (INPE) released its estimate of deforestation in the Brazilian Amazon for the period August 2015 to July 2016. It’s not good news. Deforestation increased by 29% compared to the previous year.... The actual area deforested is even largely. A recent study in Conservation Letters found that Brazil was under-reporting deforestation rates in its official figures. The study found that about 9,000 square kilometres of forest was cleared between 2008 and 2012 without the deforestation showing up in the official figures.... Part of the problem is that the Brazilian Amazon by Satellite Project (PRODES) excludes areas of less than 6.25 hectares. Leah VanWey, co-author of the research and senior deputy director at the Institute at Brown for Environment and Society, said... We showed that while deforestation in large plots of primary rainforests has declined, it has expanded in these areas not tracked by PRODES....In an article in Nature, Jeff Tolleson quotes Paulo Barreto, a senior researcher at the Amazon Institute of People and the Environment, as saying that the size of the forest tracts that are being cleared is increasing. Tolleson notes that this is “a sign that the major players are investing in illegal deforestation”.....

http://www.redd-monitor.org/2016/12/08/with-deforestation-increasing-in-brazil-will-norway-ask-for-its-us1-billion-redd-money-back/

Bad news from Brazil: Deforestation rates are going up and are likely to go even higher Chris Lang in Brazil 24 November 2016 http://www.redd-monitor.org/2016/11/24/bad-news-from-brazil-deforestation-rates-are-going-up-and-are-likely-to-go-even-higher/

Are Brazil's Deforesters Avoiding Detection? by Peter Richards, Eugenio Arima, Leah VanWey, Avery Cohn, Nishan Bhattarai First published: 7 November 2016 -- Abstract: Rates of deforestation reported by Brazil's official deforestation monitoring system have declined dramatically in the Brazilian Amazon. Much of Brazil's success in its fight against deforestation has been credited to a series of policy changes put into place between 2004 and 2008. In this research, we posit that one of these policies, the decision to use the country's official system for monitoring forest loss in the Amazon as a policing tool, has incentivized landowners to deforest in ways and places that evade Brazil's official monitoring and enforcement system. As a consequence, we a) show or b) provide several pieces of suggestive evidence that recent successes in protecting monitored forests in the Brazilian Amazon may be doing less to protect the region's forests than previously assumed.... PRODES deforestation diverged from other deforestation indicators after 2008. From 2002 to 2008, PRODES estimated that, on average, approximately 19,000 km² of forests were lost annually in the Amazon Biome. Deforestation was highest from 2002 to 2005, when forest loss rates exceeded 20,000 km² per year. Rates then fell over the course of 2006–2008 to approximately 10,000 km². After PPCDAm ii, they fell even further to 5,000 km² per year. ... From 2002 to 2008, the GFC data estimated that, on average, about 20,000 km² of forests were lost per year. Just as with PRODES, GFC recorded the highest forest loss rates during the early part of the decade. Rates then dropped in 2006 and 2007, to approximately 15,000 km² per year. However, loss rates did not drop to the same extent as the PRODES estimates after 2008. From 2009 to 2013, deforestation rates in the GFC data remained around 10,000 km² per year, or roughly double PRODES levels. Significant deforestation spikes occurred in 2010 and 2012, when loss rates increased to approximately 15,000 km² per year..... The FIRMS data follow the GFC data. Fires were prolific during the early 2000s. The number of fire incidents reached a nadir in 2005, but fell to lower levels in 2006. From 2009 to 2013, the number of fires recorded per year fell, on average, fell to less than half of levels observed earlier in the decade. Significant spikes in fire incidents were observed in 2010 and 2012, the same years for which deforestation spikes were observed in the GFC data..... The largest discrepancies between the GFC and PRODES data were found in northern Mato Grosso, where a thriving soybean sector is creating high demand for land; and in northeastern Pará, where investments in cattle processing, soybean production (in the region around Paragominas), and palm oil production are transforming the region into one of the most rapidly growing rural economies in the Amazon (Figure 2). We argue that these areas are those where landowners would have both the greatest incentives to avoid detection, and be more likely to have knowledge on how to avoid the monitoring system. .... The greatest returns to opening new land may be in these higher valued regions in north-central Mato Grosso and in northeastern Pará. Landowners in these areas, presumably, would thus have had both the greatest incentive to continue opening land and more awareness with respect to which lands could be opened without triggering a deforestation observation. Smallholder farmers and ranchers, in contrast to their more capitalized counterparts, may not have had access to the same technical knowledge. They also would have had less incentive to avoid deforestation detection. Small farming areas are less likely to be subject to environmental enforcement, despite higher rates of forest loss (Godar et al. 2014; Schneider & Peres 2015; Richards & VanWey 2016).....

http://onlinelibrary.wiley.com/doi/10.1111/conl.12310/full

12 August 2016: Indonesia news links

Elephant population in Sumatra shrinks drastically  The Jakarta Post  Jakarta | Fri, August 12 2016  http://www.thejakartapost.com/news/2016/08/12/elephant-population-in-sumatra-shrinks-drastically.html

Only 5 Sumatran Tigers Left in Bengkulu's Mukomuko By : Usmin & Ratri M. Siniwi | on 2:03 PM August 05, 2016 -- According to Fernandi, one of the major causes is due to the major loss of habitat, leaving the tigers few places to hunt for food and driving them to hunt outside of conservation areas. Sumatran tiger habitat has been shrinking after decades of the palm oil plantation boom — which led to a land clearances — across Sumatra.  http://jakartaglobe.beritasatu.com/news/only-5-sumatran-tigers-left-in-bengkulus-mukomuko/

Hundreds leave home in palm oil conflict by Severianus Endi  The Jakarta Post Pontianak | Tue, August 2 2016 -- Hundreds of residents from several hamlets in West Kalimantan have fled their homes to avoid arrest over their alleged involvement in a conflict with an oil palm company operating plantations in the area. The residents from the area around the village of Olak-Olak in Kubu district, Kubu Raya regency, have reportedly escaped to regions in and around Pontianak City. In search of support, around 50 of them approached the West Kalimantan chapter of the National Commission on Human Rights (Komnas HAM) in Pontianak on Monday to report the case. Some women were crying while carrying their children, who have not attended school for nearly a week. http://www.thejakartapost.com/news/2016/08/02/hundreds-leave-home-palm-oil-conflict.html

30 July 2016: High Tropical Deforestation from Oil Palm Production reported 


Peer-Reviewed Study Finds High Tropical Deforestation from Oil Palm Production 28 Jul 2016 --- A new study, published in the journal PLOS ONE, found high levels of oil palm-driven deforestation over a 25-year period in Southeast Asia and South America, but relatively low levels in Mesoamerica (Mexico, Central America and the Caribbean) and Africa. Three of the countries studied – Ecuador, Peru and Indonesia – had the greatest levels of observed deforestation within sampled sites, with more than half of the oil palm grown on land deforested during the study period. The study by researchers at Duke University and the Union of Concerned Scientists (UCS) is the first to examine past deforestation and potential future deforestation and biodiversity impacts associated with oil palm plantations in 20 countries across the world. The study used satellite imagery to evaluate where oil palm plantations replaced forests from 1989 to 2013........The study’s key findings included the highest conversion rates of tropical forests to oil palm plantations in sampled areas in the following countries: Ecuador (60.8 percent), Indonesia (53.8 percent), Peru (53.1 percent), Malaysia (39.6 percent) and Brazil (39.4 percent). http://www.foodingredientsfirst.com/news/Peer-Reviewed-Study-Finds-High-Tropical-Deforestation-from-Oil-Palm-Production.html?frompage=index&tracking=Headlines

Forests, species on four continents threatened by palm oil expansion July 27, 2016 by Varsha Vijay -- As palm oil production expands from Southeast Asia into tropical regions of the Americas and Africa, vulnerable forests and species on four continents face increased risk of loss, a new Duke University-led study finds.
Using 25 years of high-resolution Google Earth and Landsat satellite imagery, Vijay and her team tracked the extent of this deforestation in four regions: Southeast Asia, Africa, South America and Mesoamerica, which includes Mexico, Central America and the Caribbean.... "Many past studies have focused solely on Indonesia and Malaysia, which produce more than 80 percent of the world's palm oil. By evaluating deforestation caused by palm oil production in 20 countries across four regions, our study demonstrates that the biodiversity impacts of this expansion are very different from country to country and region to region," said Clinton Jenkins of the Institute for Ecological Research in Brazil..... "The palm oil industry has a legacy of deforestation, and today consumer pressure is pushing companies toward deforestation-free sources of palm oil," noted Sharon Smith of the Union of Concerned Scientists, who co-authored the study with Vijay, Pimm and Jenkins. "This research helps us understand where to focus on using government regulation and voluntary market interventions to shape oil palm plantation expansion in ways that protect biodiversity-rich ecosystems and prevent deforestation," Smith said. 
 Read more at: http://phys.org/news/2016-07-forests-species-continents-threatened-palm.html#jCp

27 July 2016: Austria study of satellite maps suggest palm oil could double without forest damage

Editor's note: Expertise in mapping studies seems focussed in Europe and North America. However, data has to be carefully verified. 

Land Used for Palm Oil Could Double Without Damaging Forests: Researchers By : Chris Arsenault | July 27, 2016 -- Researchers from the Austria-based International Institute for Applied Systems Analysis (IIASA) studied satellite maps from Southeast Asia, Africa and Latin America to determine where the crop used to make vegetable oils and other consumer products could be expanded sustainably.  The findings follow criticism from campaign groups who say the expansion of palm oil plantations has destroyed rainforests and displaced local people from their ancestral lands.  An area larger than Uruguay, more than 18 million hectares (44.5 million acres) of land, is covered by palm oil plantations, up from six million hectares in 1990, IIASA said.  Expansion of the crop, which accounts for about 30 percent of all vegetable oil used worldwide, has been concentrated in biodiversity-rich tropical forests in Malaysia and Indonesia.....Satellite data shows an area of up about 19 million hectares onto which the industry could grow without damaging forests that are particularly valuable for biodiversity or storing carbon as means of combating climate change, IIASA said.  Globally, an estimated three million small farmers work in the palm oil business and this could rise above seven million if the industry is expanded sustainably, IIASA said. ...Reuters.. http://jakartaglobe.beritasatu.com/international/land-used-palm-oil-double-without-damaging-forests-researchers/

25 July 2016: Situating smallholders at the fore - need to transfer the rewards upstream in the value chains,  the limited effectiveness of communal forestry, a holistic reappraisal of what is deemed sustainable


Situating smallholders at the fore - Empowering smallholders is essential for economic development – and to protect forests  Deanna Ramsay  19 Jul 2016 --  But the fact is that now companies are making commitments to source supply that is clean, that is deforestation free. And I think that’s one of the main issues that they’re struggling with is how to build these clean sources of supply that involve smallholders. But that is going to imply for them to build some kind of agreements with these groups of smallholders that are supplying these companies. So that’s the big issue. Because the majority of smallholders are independent smallholders, like in the oil palm sector in Indonesia.....I think what is needed is business models that are able to share those costs – share the cost, share the risks and share the benefits. Because in most of the cases you have business models that then transfer the costs to the producers that are upstream in the supply chains. So they are the ones who pay for the cost. In an ideal situation, the companies also should be able – if they are targeting deforestation free in markets – they should be able if there is some reward to transfer the rewards upstream in the value chains.... So the smallholders can also benefit or receive some compensation on the costs that they are investing in improving the production systems. But that is still an open question, and we don’t know if that’s going to work in that way....  http://blog.cifor.org/42305/situating-smallholders-at-the-fore?fnl=en

Community forestry in Central Africa: Has it been a success? New book draws lessons for participatory resource management in the Congo Basin 21 Jul 2016 -- ).....There are several factors that explain the limited effectiveness of communal forestry: (i) reforms to the forestry sector in Central Africa in the mid-1990s favored industrial concessions and community forests, (ii) the development of communal forests was never a fundamental challenge or stake for Central African states or for technical and financial partners, and, (iii) in countries like Cameroon where decisive experiments have been carried out, the relatively high cost of the forest acquisition process has prevented many decentralized territorial units from adopting this management system independently......... http://blog.cifor.org/42380/community-forestry-in-central-africa-has-it-been-a-success?fnl=en

Wood fuel not as bad for the environment as previously thought Jack Hewson  18 Jul 2016 -- .....“We’re saying that the studies that have been published so far have not been adequate to inform policy,” she said. “You find that most of the papers are either looking at the environmental factors and making broad conclusions from that, or the health factors where wood fuel is causing lots of respiratory disorders, and then there are those who are focusing on the economic aspects. But you don’t have studies that try to look at all of these issues together and, most importantly, at the trade-offs among them.”...In partnership with the United Kingdom Department for International Development (DFID), CIFOR has commissioned a number of systematic reviews as part of its Evidence-Based Forestry Initiative, including Cerutti and Sola’s research on wood fuel....“In this regard, we are now seeing a holistic reappraisal of what is deemed sustainable,” said Cerutti http://blog.cifor.org/42288/wood-fuel-not-as-bad-for-the-environment-as-previously-thought?fnl=en

7 July 2016: Olam Palm Gabon and Duke’s Nicholas School of the Environment recommend 108-118 tC/ha threshold for development with 1:2.6 set-aside to development area ratio, Scientific American article on HCV, 97% of 1.2 billion tons CO2E due Indonesia Haze Crisis 2015 

Editor's note: Readers reckon that set-aside areas may suit for low impact logging operations with FSC, so that oil palm and timber can co-exist with the needed certifications / sustainability schemes on both commodities with business synergy. The logging and oil palm link is well established especially for large concessionaires - the Malaysia FELDA large-scale developments in Pahang and Johore also featured revenues from timber, of which MARA, overseas timber business and local logging contractors/sub-contractors would have been part of the timber business.

CONSERVATION KEY TO CURBING EMISSIONS FROM OIL PALM AGRICULTURE IN AFRICA June 28, 2016  Featuring John Randolph Poulsen -- DURHAM, N.C. -- As oil palm production expands from Southeast Asia into Central Africa, a new Duke University-led study warns that converting Africa’s tropical forests into monoculture palm plantations will cause a significant spike in climate-warming carbon emissions. The authors urge regional governments to enact mandatory policies regulating which forests can be cleared and how much remaining forest must be set aside for conservation. “Our case study, which focuses on oil palm farming in the nation of Gabon, finds that converting even previously logged forest into oil palm plantations will lead to high carbon emissions,” said John R. Poulsen, assistant professor of tropical ecology at Duke’s Nicholas School of the Environment.  “Clearing just 11,500 hectares of forest -- or roughly 28,400 acres -- would release about 1.5 million metric tons of carbon into the atmosphere,” Poulsen said. “That’s equivalent to the annual emissions of some small developing countries.” However, the new study finds that these emissions could be completely offset over 25 years if development were centered on forests that store less carbon and if a portion of every development had conservation set-asides. Poulsen and his colleagues published their peer-reviewed study June 24 in the journal Conservation Letters....They used field measurements and LiDAR satellite data to calculate forest carbon stocks -- the amount of carbon stored in trees -- and potential carbon emissions at the site of a 50,000-hectare palm oil plantation in Gabon. The plantation is being developed jointly by the Gabonese government and the agribusiness firm Olam International Ltd., to test if low-emissions palm oil development is feasible in the equatorial country on the Atlantic Ocean..... “First, we recommend establishing a nationwide carbon threshold of 108 to 118 metric tons per hectare. Only forests that store less than this density of carbon will be considered suitable for development,” Poulsen said. “Second, palm oil companies will also have to set aside enough land within a plantation -- roughly one acre for every 2.6 acres developed -- to offset emissions. “The precise set-aside ratio may vary by site, but 2.6 to 1 is generally the point at which carbon storage in the conserved forest will offset carbon loss in the rest of the plantation and achieve net-zero emissions over time,” Poulsen explained.... “Although our study considers only forest carbon, and not biodiversity or other ecosystem services, we estimate there is enough low-carbon forest in Gabon to achieve net-zero emissions while still permitting the nation to meet its palm oil production goals,” he said. Allowing industry to voluntarily adhere to these new guidelines or opt out of them is not an option, he stressed. “To succeed, this approach needs to be mandatory and implemented by the government with careful land-use planning and strict enforcement.”   Support for this research came from Olam Palm Gabon and Duke’s Nicholas School of the Environment.... 
 https://nicholas.duke.edu/about/news/conservation-key-curbing-emissions-oil-palm-agriculture-africa; CITATION: “Reducing Carbon Emissions from Forest Conversion for Oil Palm Agriculture in Gabon,” Mark E.H. Burton, John R. Poulsen, Michelle E. Lee, Vincent P. Medjibe, Christopher G. Stewart, Arun Venkataraman, Lee J.T. White. Conservation Letters, June 24, 2016. DOI: 10.1111/conl.12265

Conservation to Compensate Carbon Emission Essential in Gabon  June 30, 2016 http://www.azocleantech.com/news.aspx?newsID=23460

EU TIMBER REGULATION: As a major global supplier of timber products from various origins, Olam International Ltd is committed to sustainable forest management practices and third party verification of all wood sourced from outside our operations. http://olamgroup.com/products-services/industrial-raw-materials/wood/eu-timber-regulation/, http://olamgroup.com/products-services/industrial-raw-materials/wood/

Olam To Divest Timber Assets In Gabon For US$18.0 Million, Singapore, January 24, 2014 -- entered into an agreement with a consortium of Chinese investors to sell part of its forestry and saw milling assets in Gabon for a gross consideration of US$18.0 million.... The divestment, which is a part of Olam’s revised strategy to restructure the Wood Products portfolio, includes the sale of two saw mills in the Makokou region of Gabon, 2.5 hectares of land in the Special Economic Zone (SEZ) at Nkok, Gabon and associated forestry concessions. - See more at: http://olamgroup.com/news/olam-to-divest-timber-assets-in-gabon-for-us18-0-million/#sthash.LkMYLaI4.dpuf (note: search of company website does not indicate any further divestment of Gabon timber business)

Can Oil Palm Plantations and Orangutans Coexist? Companies are partnering with environmental groups to aid the red apes, but results are elusive  By Melati Kaye on June 30, 2016 -- This lush portion of the plantation should be ideal habitat for orangutans. I have not spotted any, but according to Hendriyanto, my guide from the plantation’s conservation team, an estimated 14 of the red apes do indeed live here. .... Surveyors came up with that number by counting orangutan nests in this 657-hectare so-called "High Conservation Value" (HCV) enclave within the 18,000-hectare plantation. The population density survey and the HCV set-aside are required of oil palm companies like Hendriyanto's employer, Ketapang-based PT Kayung Agro Lestari (PT-KAL), for eco-compliance certification by the Roundtable on Sustainable Palm Oil (RSPO), a consortium that has been setting the industry's sustainability standards since 2004..... But one step outside this refuge lies a very different scene: blistering tropical heat and regimented rows of spiky oil palm trees spread over miles of ochre mud that turns to deep, rutted puddles after a drizzle. Borneo's forest-to-plantation ratio has plummeted in recent decades. Satellite data show that the island's forest cover dwindled from 76 percent to a mere 28 percent between 1973 and 2010. Deforestation has only accelerated since then, especially in 2015, when fires smoldered across 1.3 million hectares of peatland for months on end.... From an ape's point of view, the plantation vista presents an uninhabitable hellscape. From an industry standpoint, it is a prospect of burgeoning revenue. Half of the vegetable oil consumed around the world comes from oil palms. According to data from USDA and the World Bank, the global market for palm oil and palm kernels is around $47 billion..... To forestall such a public relations disaster, industry-leading oil palm companies have tried a series of conservation initiatives to show that orangutans and plantations can co-exist--hence the RSPO, the HCV enclaves and the relocation of orphaned apes to rehabilitation centers for later reintroduction back to the forest. The latest scheme is to interlink isolated HCV patches with migration "corridors" so that orangutans and other forest-dwelling creatures can disperse in accordance with their natural behaviors.... To implement such measures (and garner some third-party credibility), many companies have partnered with environmental non-governmental organizations (NGOs). But results have so far been elusive. Part of the problem is a general lack of data. But companies can also ignore or skimp on the NGO recommendations. Compounding matters, the RSPO and its ilk are agonizingly slow at investigating complaints, and their findings are no more than advisory, with no force of law. Moreover, Indonesian licensing laws can undermine conservation by reallocating forest leases of companies that do not exploit their allotted tracts fully or quickly enough. And with RSPO covering barely a fifth of the world’s palm oil operators, there is always a queue of wildcat planters ready to take up rescinded leases.... http://www.scientificamerican.com/article/can-oil-palm-plantations-and-orangutans-coexist/

On land and in space, understanding the impacts of fires. To measure greenhouse gas emissions from the fires in maritime Southeast Asia in 2015, a variety of methods and expertise coalesced DEANNA RAMSAY   28 Jun 2016 -- The study’s authors determined that the carbon emissions released by the fires in September and October 2015 of 11.3 million tons per day were higher than those of the entire European Union, which daily released 8.9 million tons over the same period.....The widespread landscape fires in parts of Kalimantan, Sumatra and Papua last year generated noxious smoke and haze affecting millions – and international attention – and the team on the ground was the very first to assess the emissions from actively burning peatland..... “There have been some isolated studies before where people artificially set fires in the lab to try to understand the chemical characteristics of peatland fire smoke in Indonesia. But no one had done this on natural fires, and especially not on the kind of extreme fires seen in 2015. We are the first people to do that,” said King’s College London professor Martin J. Wooster, one of the study’s lead authors. The team used their measurements of ground-level smoke from burning peat to derive the emission factors, i.e. to understand how much carbon dioxide, carbon monoxide and methane is released for a particular amount of tropical peat burned. Satellites provided data on the heat output being radiated by the fires, as well as information on the amount of carbon monoxide present in the surrounding atmosphere. From this, the total carbon emissions were determined by combining the satellite measurements and the Copernicus Atmosphere Monitoring Service (CAMS) modeling framework with the newly determined emission factors from fires around Palangka Raya – one of the hardest hit sites. The researchers concluded that 884 million tons of carbon dioxide was released in the region last year – 97% originating from burning in Indonesia. The corresponding carbon emissions were 289 million tons, and associated carbon dioxide-equivalent emissions 1.2 billion tons.....“This sort of modeling has only been possible quite recently. When we saw the fires start in the region – knowing that it was an El Niño year – we were able to quickly start analyzing the situation, and we started contacting others who could contribute,” said study lead author Vincent Huijnen of the Royal Netherlands Meteorological Institute, who works on the CAMS framework. Wooster concurred about the clarity of their calculations because of fresh technologies....He said, “We found that this was the largest single fire event in terms of carbon emissions from Indonesia since 1997. We can much more confidently make our calculations because of the new satellite, modeling and field instrument technology that is now available compared to 20 years ago.”.... For David Gaveau, also a CIFOR scientist and study co-author, the fires in 2015 were different because they were primarily on drained, idle peatland. “In 1997 the drought lasted longer, the fires were more severe and a lot more forest burned. In 2015, fires mostly burned on degraded peatland covered with shrubs and wood debris,” he said.... “The last year has seen the largest single year atmospheric carbon dioxide increase since records began in the 1950s, and we calculated that the fires burning in Indonesia made up a significant component of the increase over what is ‘normal’ in non-El Niño years,” Wooster said..... For Murdiyarso, good policy is key – and providing numbers related to the 2015 fires can help. With the Indonesian government’s Peatland Restoration Agency established following the fires last year, there is movement to avert future fires....... http://blog.cifor.org/42098/on-land-and-in-space-understanding-the-impacts-of-fires?fnl=en


Vast Peat Fires Threaten Health and Boost Global Warming. Largest blazes on earth smolder for months in Canada and Indonesia By XiaoZhi Lim on July 2, 2016 http://www.scientificamerican.com/article/vast-peat-fires-threaten-health-and-boost-global-warming/

THESE FIRES ARE HUGE, HIDDEN AND HARMFUL. WHAT CAN WE DO? Smoldering peat gives off massive quantities of carbon dioxide and other pollutants, but the search for solutions is on. By XiaoZhi Lim, freelance science reporter based in Singapore.  June 28, 2016 -- June 28, 2016 — As forest fires devastated Fort McMurray, Alberta, last month, a different sort of fire may have started beneath the ground. Peat, a carbon-rich soil created from partially decomposed, waterlogged vegetation accumulated over several millennia and the stuff that fueled Indonesia’s megafires last fall, also appears in the boreal forests that span Canada, Alaska and Siberia. With the intense heat from the Fort McMurray fires, “there’s a good chance the soil in the area could have been ignited,” says Adam Watts, a fire ecologist at Desert Research Institute in Nevada. Unlike the dramatic wildfires near Fort McMurray, peat fires smolder slowly at a low temperature and spread underground, making them difficult to detect, locate and extinguish.  ey produce little flame and much smoke, which can become a threat to public health as the smoke creeps along the land and chokes nearby villages and cities. Although they look nothing like it, peat fires are the “largest fires on earth.”And although they look nothing like it, peat fires are the “largest fires on earth,” says Guillermo Rein, a peat fire researcher at Imperial College in the United Kingdom....The boreal forests are thought to contain some 30 times more peat than Indonesia. Because they can smolder for weeks and months, sometimes even staying active underground throughout cold northern winters, peat fires emit on average the equivalent of 15 percent of anthropogenic greenhouse gas emissions per year, according to Rein — carbon that took thousands of years to sequester.... Rein recently received a five-year, €2 million grant from the European Research Council to develop a peat fire early warning system. He is trying to characterize the heat fingerprints of peat fires by replicating small peat fires in the laboratory and using infrared cameras to record the heat emitted. He hopes to use his findings to calibrate satellites specifically for peat fires, just as some motion sensors are calibrated to detect infrared radiation unique to humans.....Rein is also collecting the gases produced from his experiments and analyzing them for patterns that could become telltale warning signs of a growing peat fire. For example, the ratios of carbon monoxide or volatile organic compounds to carbon dioxide can be used to tell the difference between emissions from peat fires and those from combustion engines or power plants. These patterns could then be applied to handheld gas sensors or gas analyzers placed in drones, airplanes or buildings in nearby villages and cities to help detect peat fires....Once found, one problem to putting out peat fires is that peat soil repels water when it gets very dry, says Watts.... Adding a fire retardant to the water might help make water more effective at this. One example is Peat FireX, a plant-based powder developed in 2012 by Steve Sinunu, CEO of Texas-based EnvironX Solutions. When dissolved in water, it disrupts the strong hydrogen bonds between water molecules, making it easier for the water to penetrate soil. As the solution moves into the soil, it coats the peat to protect it from fire....Earlier this year, the Indonesian government adopted Peat FireX as a weapon against peat fires, according to Steve Sinunu and an independent company in Singapore who helped connect EnvironX with the Indonesian government....   
http://ensia.com/features/these-fires-are-huge-hidden-and-harmful-what-can-we-do/


Ravaged woodlands - Stricken trees provide clues about how America will adapt to global warming—but little hope that it can be averted   Jul 9th 2016 -- The growth of wildfires is a worldwide problem, with even bigger burns elsewhere. Siberia, Tasmania, Canada and Indonesia have seen record-breaking fires in recent years. According to Greenpeace, fire consumed over 7m acres of Russian forest in the year to May 23rd (the Kremlin offers much lower figures). The area of Canadian forest burning each year has roughly doubled since the 1970s; a wildfire near Fort McMurray, in Alberta, which started in May, has turned 1.5m acres of forest and 2,400 buildings to ash. Now heading north through Saskatchewan, the fire is reckoned to be Canada’s costliest natural disaster.
 http://www.economist.com/news/briefing/21701751-stricken-trees-provide-clues-about-how-america-will-adapt-global-warmingbut-little-hope?

A new generation of forest managers in the Democratic Republic of Congo - A university on the banks of the Congo River is producing the next generation of experts on sustainable forestry.  Fai Collins 29 May 2016 http://blog.cifor.org/41698/a-new-generation-of-forest-managers-in-the-democratic-republic-of-congo?fnl=en


Reserves need tweaks to withstand Amazon fire threat - Despite their rapid proliferation, 'Sustainable Use Reserves' in the Amazon aren't living up to their hype- especially when it comes to reducing fire.  Samuel McGlennon 30 May 2016 http://blog.cifor.org/41726/reserves-need-tweaks-to-withstand-amazon-fire-threat?fnl=en

Quantifying the drivers of South American deforestation - New research uses spatially and temporally explicit data to better understand deforestation trends in South America.  Samuel McGlennon 27 May 2016  http://blog.cifor.org/41685/quantifying-the-drivers-of-south-american-deforestation?fnl=en

What’s Driving Deforestation Now? Doug Boucher, scientific adviser, Climate and Energy | April 14, 2016 http://blog.ucsusa.org/doug-boucher/whats-driving-deforestation-now

The challenges of conserving tropical forests - From industrial concessions to community forests, new research looks at what constitutes responsible forest management TARA LOHAN  29 Apr 2016 http://blog.cifor.org/41259/the-challenges-of-conserving-tropical-forests?fnl=en


Switching swidden to agroforestry – a small intervention with big potential in West Java By converting to agroforestry, farmers in Indonesia could reap major environmental, economic and social benefits. KATE EVANS 26 Apr 2016 http://blog.cifor.org/41242/switching-swidden-to-agroforestry-a-small-intervention-with-big-potential-in-west-java?fnl=en


12 December 2015: High Carbon Stock study by Sustainable Palm Oil Manifesto - companies and Sabah to test it out; CIFOR REDD+ links and Indonesia REDD handover to FORDA



Sabah To Test High Carbon Stock For Sustainable Oil Palm December 11, 2015   KUALA LUMPUR, Dec 11 (Bernama) -- The Sabah Forestry Department has committed to test the High Carbon Stock plus (HCS+) methodology for sustainable oil palm development in six months following the release of the HCS+ study's findings.  "We are very keen to pursue the offer from the Sabah Forestry Department which indicated that this would be very helpful for them.
 "This shows that the state is very committed towards sustainable palm oil and a sustainable economy," said Forum for the Future founder Director Jonathan Porritt.... http://www.bernama.com.my/bernama/state_news/news.php?id=1198759&cat=sbe

CIFOR links:

New NASA Probe Will Study Earth’s Forests in 3-D, September 8, 2014,  http://www.nasa.gov/content/goddard/new-nasa-probe-will-study-earth-s-forests-in-3-d/#.VzR_xIR97am... By revealing the 3-D architecture of forests in unprecedented detail, GEDI will provide crucial information about the impact that trees have on the amount of carbon in the atmosphere. Although it is well-established that trees absorb carbon and store it long-term, scientists have not quantified exactly how much carbon forests contain. As a result, it’s not possible to determine how much carbon would be released if a forest were destroyed, nor how well emissions could be countered by planting new trees.... "One of the most poorly quantified components of the carbon cycle is the net balance between forest disturbance and regrowth,” said Ralph Dubayah, the GEDI principal investigator at the University of Maryland. “GEDI will help scientists fill in this missing piece by revealing the vertical structure of the forest, which is information we really can’t get with sufficient accuracy any other way.”.. GEDI is scheduled to be completed in 2018. NASA’s Earth Venture Instrument program is part of the Earth System Science Pathfinder program, managed by NASA’s Langley Research Center in Hampton, Virginia, for NASA’s Science Mission Directorate. The GEDI team includes co-investigators from Goddard; Woods Hole Research Center, Woods Hole, Massachusetts; the U.S. Forest Service, Ogden, Utah; and Brown University, Providence, Rhode Island.

30 November 2015: Malaysia Pahang bauxite mining compensation plan for residents, DOE found high mercury levels in rivers


RM500-1,000 Monthly Compensation To Be Paid To Pahang Residents Affected By Bauxite Mining   30 November 2015 Chairman of the Bukit Goh Bauxite Coordination Committee, Datuk Abd Wahid Abd Manap had announced yesterday that the compensation will be paid out to individuals identified by the committee from funds provided by the bauxite contractors. "For now, we can offer RM1,000 compensation to each business operator and RM500 per month to each resident whose livelihood have been badly affected by the bauxite mining scourge.... According to media reports, bauxite mining activities have released heavy metal particles into Kuantan’s air and water supply, leading to an outbreak of respiratory problems and skin disease with the heavy particles even contaminating water treatment plants.

http://malaysiandigest.com/frontpage/29-4-tile/581704-rm500-1-000-monthly-compensation-to-be-paid-to-pahang-residents-affected-by-bauxite-mining.html

23 November 2015: Malaysia - Pahang DOE  finds high mercury levels in rivers near bauxite mining


DOE finds high mercury levels in rivers near bauxite mining sites, says Kuantan MP BY RAM ANAND Published: 23 November 2015

http://www.themalaysianinsider.com/malaysia/article/doe-finds-high-mercury-levels-in-rivers-near-bauxite-mining-sites-says-kuan#sthash.35BjbUAk.dpuf

2 November 2015: Malaysia prepares for monsoon for flood prone Kelantan, Pahang and Terengganu; Indonesia REDD-I partnership celebrates five years with handover to FORDA


All prepared for the worst by nicholas cheng, neville spykerman, andsyed azhar November 2, 2015; KUALA LUMPUR: The monsoon season is coming and the Fire and Rescue Department says it is prepared for things to go as bad as the east coast flood crisis last year. Over the year, officers in the flood prone states of Kelantan, Pahang and Terengganu have been conducting water training in rivers to test their readiness to evacuate scores of people should water levels rise. Fire and Rescue Department assistant director-general (Operations Division) Datuk Soiman Jahid said assets had been placed in the states in preparation for the rainy season. “We are preparing for it to be as bad as last year. We have conducted water training for officers to be well versed in navigating floods and we have made sure our fire engines and boats are all in good working order in those states.http://www.thestar.com.my/News/Nation/2015/11/02/All-prepared-for-the-worst-Fire-and-Rescue-Dept-officers-undergo-water-training-as-part-of-monsoon-r/

REDD-I partnership celebrates five years with handover to FORDA 26 Oct 2015; CIFOR’s Director of Communications and External Relations, John Colmey, officially transferred the management of REDD-Indonesia.org to FORDA Director General, Henry Bastaman, during the International Conference of Indonesia Forestry Researchers (INAFOR) at the IPB Convention Center, Bogor.... REDD-Indonesia.org (REDD-I), jointly developed by CIFOR and FORDA, has become Indonesia’s leading website for reliable information on forests, climate change and REDD+ in Indonesia. It was launched in 2011 after CIFOR and FORDA identified an information gap on climate change problems and solutions in the country. Now, the website attracts 6,000 visits per month and has 9,300 subscribers to its monthly news updates. http://www.cifor.org/corporate-news/redd-i-partnership-celebrates-five-years-with-handover-to-forda/

20 October 2015: NGO C4 raises concerns about Kelantan deforestation above cap of 5,960 hectares per  year after 2014 deadly floods displaced more than 200,000 people and 21 lost their lives


Anti-graft group fears Kelantan deforestation will breed corruption, cronyism Published: 18 October 2015 1:50 PM The Centre to Combat Corruption and Cronyism is concerned over Kelantan's logging policies after the state approved additional land for logging. – Photo courtesy of Flickr, October 18, 2015.The Centre to Combat Corruption and Cronyism (C4) has raised concerns that the deforestation in Kelantan, following policies by the state government, will breed corruption and cronyism. C4 executive director Cynthia Gabriel in a statement today called on the Kelantan government to reveal if the multiple approvals awarded to a private company has breached the state's annual logging cap. She said that during the height of the flood crisis in Kelantan last December, Kelantan Menteri Besar Datuk Ahmad Yakob blamed “illegal land clearing and logging” for the devastating floods in the state, and added the government had always capped logging at 5,960 hectares a year, the standard set by the National Land Council. "So it comes as a shock to discover that Kelantan recently approved an additional 4,500 hectares to a private company for logging, while 9,000 acres (3,642 hectares) are to be used for oil palm planting." - See more at: http://www.themalaysianinsider.com/malaysia/article/anti-graft-group-fears-kelantan-deforestation-will-breed-corruption-cronyis#sthash.8nTVEHk6.dpuf

Kelantan deforestation policies need urgent answers – Cynthia Gabriel Published: 18 October 2015 2:00 PM It was only last year that the great floods – dubbed the worst flood in Malaysian history since 1971 – hit Malaysia from December 22, 2014 to January 3. More than 200,000 people were displace while 21 lost their lives. At the height of the crisis, Kelantan Menteri Besar Datuk Ahmad Yakob had then blamed “illegal land clearing and logging” as among the causes for the devastating floods in the state. He claimed the government had always capped logging at 5,960ha a year, the standard set by the National Land Council...... In his statement, Husam claimed that the private companies had obtained several approvals from the state government, raising the question if only selected crony companies are benefitting from the state’s generosity. - See more at: http://www.themalaysianinsider.com/sideviews/article/kelantan-deforestation-policies-need-urgent-answers-cynthia-gabriel#sthash.nlScP8BC.dpuf


19 October 2015: CIFOR - Can we trust country-level data from global forest assessments? CIFOR, USAID to Conduct Research on Zero-Deforestation Policy


Palm oil company caught destroying primary forest in endangered ecosystem  Tuesday 13 October 2015 by Mongabay.com - RAN photo deforestation lesuer Non-profit forest group, Rainforest Action Network took pictures of the forest, which it says was cleared by palm oil company PT Tualang Raya in August 2015 in the Leuser Ecosystem in northern Sumatra. Image: Paul Hilton/ RAN  http://www.eco-business.com/news/palm-oil-company-caught-destroying-primary-forest-in-endangered-ecosystem/

Palm oil plantations devouring forests in West Africa Global Information Network |   September 29, 2015,  newly released study has found that trees covering an area twice the size of Maine were cut down worldwide in 2014. But, the biggest threat to forests is looming over West Africa. Governments there have been buckling to pressure to convert “vacant” land and sell off forests for more profitable uses, namely palm oil plantations—a key ingredient in shampoo, toothpaste, ice cream, floor polish and many other foodstuffs and cosmetics. By 2020 global demand for palm oil is expected to double and then triple by 2050 http://www.frostillustrated.com/2015/palm-oil-plantations-devouring-forests-in-west-africa/

CIFOR, USAID to Conduct Research on Zero-Deforestation Policy 18 October, 2015 | 13:38 WIB TEMPO.CO, Jakarta - The Center for International Forestry Research (CIFOR) has teamed up with the United States Agency for International Development (USAID) to conduct a research on the implication of palm oil companies’ commitment to forest and landscape in Indonesia. Steven Lawry, the director of CIFOR’s Forests and Governance Research, said that one of the research topics was related to the evaluation of zero-deforestation policy made by large-scale oil palm companies. The research, Lawry said, was aimed at answering the most urgent questions that affect forest governance in Indonesia. “This includes evaluating the zero-deforestation policy pledged by huge palm oil companies and understanding how they can ensure access for farmers to a supply chain that is free of deforestation,” Lawry said in a press release as quoted by Bisnis.com on Sunday, October 18, 2015. http://en.tempo.co/read/news/2015/10/18/206710609/CIFOR-USAID-to-Conduct-Research-on-Zero-Deforestation-Policy

Fire & haze in Indonesia: Research and resources 9 Oct 2015 ; Forest fires occur in Indonesia every dry season. However, the haze that spreads to other countries is no longer restricted to drought years, and has become increasingly frequent due to ongoing deforestation of peatlands – with profound health and economic impacts across Southeast Asia. There are no easy solutions. The complex factors involved in every fire mean the problem goes far beyond who actually lights the match. That’s why the Center for International Forestry Research (CIFOR) has collected its work on fire and haze in Southeast Asia. The new site explains the context, impacts and history of this ongoing crisis – drawing upon cutting edge science and research. See the full collection at cifor.org/fire-and-haze...http://www.cifor.org/corporate-news/fire-haze-in-indonesia-research-and-resources/

Can we trust country-level data from global forest assessments? DG’s Column by Peter Holmgren - Significant differences exist between the FAO's Global Forest Resource Assessment and the Global Forest Watch results.... against what reference should we monitor progress towards targets expressed in these commitments? And do we have the processes in place to deliver accurate findings? In an earlier article I compared attempts to assess changes in the global forest with the story about blind men and the elephant. Differences in methods, definitions, completeness and field verifications inevitably led to entirely incomparable results between Global Forest Watch and the FAO Global Forest Resources Assessment. These results are widely communicated and used as a reference in many political and economic analyses. In fact, there are few alternative sources of information on global forest change....To make the data easier to digest, I’ve extracted the 29 countries that had more than 20 Mha forest in 2005, according to FRA 2005. Together, these countries represent about 85% of the world’s forests. Their total forest area change in the period according to FRA is -2.2 Mha/yr, and the “tree cover loss” in GFW 16.4 Mha/yr. See the data table here. Going country by country, it is clear that the discrepancies are caused by quite different situations on the ground. I decided to subjectively divide the 29 countries into five categories in an attempt to highlight why these gaps are so significant. Category 1. Complete contradiction – countries where FRA shows a stable or increasing forest area, whereas GFW reports major tree cover losses. Includes: Australia, Canada, China, Finland, Gabon, India, Malaysia, Russia, Sweden and the United States, representing about half of the world’s forests. – FRA 2015: total gain of 2.4 Mha/yr – GFW: total loss of 9.6 Mha/yr... http://blog.cifor.org/34669/can-we-trust-country-level-data-from-global-forest-assessments?fnl=en

One wicked problem, three major challenges - How to stop deforestation while boosting benefits for smallholders and meeting market demand?  by Pablo Pacheco Friday, 25 Sep 2015; To achieve zero deforestation, new ties need to be woven between different levels of government, the private sector and civil society. But in order to act on private-sector commitments, incentive systems and regulations that are reinforcing old patterns first need to be untangled. Beef and soybean production are the main drivers of deforestation in Brazil, and oil palm expansion threatens Indonesia’s forests and peatlands. These two countries have the largest forest areas in the world – and the largest forest losses over the past five years. Powerful industry and multi-stakeholder groups that have an extensive supply base in Brazil and Indonesia signed the New York Declaration on Forests in 2014, pledging to make their supply chains deforestation-free by 2030. The Indonesian government signed the declaration; Brazil did not, although some of its subnational governments did.  http://blog.cifor.org/33868/zero-deforestation-special-one-wicked-problem-three-major-challenges

CIFOR DG: Seeing the big picture on the world’s forests By: GLF Committee By Peter Holmgren, CIFOR Director General... This week we have the opportunity to compare different assessment of the world’s forests. FAO presents the results of the Global Forest Resources Assessment 2015 (FRA 2015) at the World Forestry Congress in Durban. Global Forest Watch has released new global satellite observations of tree cover reductions in 2014. And Nature has published an article describing over 400,000 field plots from national forest inventories that were used to count all of the world’s trees.
So, what do these different studies have to say about the forest resources of the world and how they change?...

http://www.landscapes.org/cifor-dg-seeing-the-big-picture-on-the-worlds-forests/

Kissing livelihoods and ecosystems goodbye — the very real threat of 'fake forests' in Africa  15 Sep 2015 09:25|Samantha Spooner; Planted forests have been increasing in Africa at a rate of 0.2 million hectare a year--to the benefit largely of the commercial plantations....This culminated in a protest on September 10 in Durban, when over 3,000 people took to the streets as part of an action against “fake forests”. The march concluded with Greenpeace executive director, Kumi Naidoo, handing over a 100,000 signature petition against plantations to the WFC Programme Manager Motsamai Nkosi. Fake forest threat. Since 1990, some 38 million hectares  of primary forest have been reported as modified or cleared. This does not necessarily mean that this forest is converted to other land uses. Primary forest, when modified but not cleared, changes into other naturally regenerated (secondary) forest and in some cases planted forest. Planted forest area has increased by over 110 million hectares since 1990, reaching a to al of 290 million hectare in 2015, and accounts for 7% of the world’s forest area. In the case of Africa, the amount of replanted forest increased by 0.2 million hectares per year from 2010, totalling 16 million hectares in 2015. What is of concern to the civil society groups is that even the FAO is not making enough of a differentiation between natural and planted forests and the impact this has on the ecosystems and local communities. For example, the FAO’s definition of ‘“forest” includes commercial plantations of fast growing trees.  http://mgafrica.com/article/2015-09-01-the-threat-of-fake-forests-in-africa


16 October 2015: REDD and Indonesia peatland burning


Can REDD save Indonesia’s peatlands from burning?   By Chris Lang 14 October 2015  http://www.redd-monitor.org/2015/10/14/can-redd-save-indonesias-peatlands-from-burning/


11 October 2015: Cameroon REDD plan critiqued  "Poor communities will not simply starve in order to abide by rules agreed between the government and conservation organisations, violence by ecoguards already a problem



Cameroon’s REDD plans critiqued by NGOs ahead of World Bank meeting By Chris Lang 9 October 2015' .... ER-PIN focusses largely on reducing emissions from community agricultural activities. This makes Cameroon’s Emissions Reductions Program (ER-P) far less likely to succeed in reducing deforestation: Poor communities will not simply starve in order to abide by rules agreed between the government and conservation organisations; a programme which does not genuinely incorporate their rights and interests will see high levels of non-compliance (and therefore continuing deforestation and GHG emissions), most likely accompanied by significant levels of serious human rights violations (including violence by ecoguards, for example, something which is already a significant problem in Cameroon)....http://www.redd-monitor.org/2015/10/09/cameroons-redd-plans-critiqued-by-ngos-ahead-of-world-bank-meeting/


30 September 2015: Norway to complete $1 billion payment to Brazil (in December) for protecting Amazon, CIFOR reports lucrative illegal market for crop land in Indonesia, reader points to northern ASEAN haze problem too 


Editor's note: I have this from a reader based in northern ASEAN "Asia has equally serious annual haze problems in other regions where there are no plantation crops (and no Singapore or KL nearby). Earlier this year Thailand's Chiang Rai airport was closed due to serious smoke haze, and public health warnings were issued around Northern Thailand. I believe some areas were as bad as Singapore but largely unreported in international media. (In early 2015, many) hot spots were located in northern ASEAN.... (getting) much, worse with over 900 satellite marked hotspots and serious disruption of commercial aviation throughout the region... . At the northern limits of oil palm cultivation, normally around 10 degrees N , the sunsets are currently a spectacular red due to smoke haze drifting down from further north.  Much of northern Myanmar, Thailand, Laos, Cambodia is often shrouded in smoke haze at this time of year, to the extent of sometimes closing airports. This is a normal dry season phenomenon which has nothing to do with oil palms ( although it is man-made, as seen from the many satellite hotspots). This is not to suggest that clearing land for new oil palm cultivation is not an important contributor to smoke haze.  But to identify oil palm cultivation as the main cause of smoke haze within Asia  is misleading.  And as we know, misleading information sometimes obscures an effective response."

Lucrative illegal market for crop land a key cause of fires: Researcher CIFOR  Published 28 September 2015 by David Fogarty Assistant Foreign Editor; Dr Purnomo said there is a well- established market for abandoned or conflict land, with land cleared by burning fetching a premium. Using excavators and other heavy equipment to clear the land is costly and time- consuming. "You need to understand that the fire and haze create a lot of money. Quite a lot of money. There is a market for burned land and also it is a way for cheap and quick land preparation for HTI (pulpwood) and oil palm," he told The Straits Times in an interview last week. "Because if you grab the land, the forest - it can be concession land or state land - you can sell it. My research shows that the price is around eight million rupiah (S$800) per hectare. But if you burn that land, the price will increase," he said. "Some people can claim that land and can sell to the network of people. And the buyers can be someone in Jakarta, Bogor, everywhere... It can be 10ha, 20 or even 100ha." Data shows mid-level investors can come from places outside Indonesia, such as Malaysia, he added. According to Dr Purnomo, the price per hectare is US$665 (S$950) after the land is slashed and cut. If the land is burned, the price goes up about US$200 per hectare: a more or less 30 per cent rise. "There is a market for people who mostly prepare for oil palm. You can imagine if they grow the oil palm, after three years, then the price of that land can reach US$3,077 per ha," he said, basing his research on land prices in Sumatra's Riau province. http://www.straitstimes.com/asia/se-asia/lucrative-illegal-market-for-crop-land-a-key-cause-of-fires-researcher

Norway to complete $1 billion payment to Brazil for protecting Amazon by Green Business  |  Tue Sep 15, 2015 9:52am EDT Norway will make a final $100-million payment to Brazil this year to complete a $1-billion project that rewards a slowdown in forest loss in the Amazon basin, Norway's Environment Ministry said on Tuesday. Brazil had more than achieved a goal of reducing the rate of deforestation by 75 percent, the condition for the payments under an agreement for 2008-15 meant to protect the forest and slow climate change, it said. The remaining cash would be paid before a U.N. summit on climate change in Paris in December, the ministry said. Since 2008, Norway has paid about $900 million to Brazil's Amazon Fund.  "Brazil has established what has become a model for other national climate change funds," Norwegian Environment Minister Tine Sundtoft said in a statement...... http://www.reuters.com/article/2015/09/15/us-climatechange-amazon-norway-idUSKCN0RF1P520150915

13 September 2015: A pick up in deforestation in Brazil and Indonesia? Development versus sustainable palm oil. Will Indonesia new subsidies undermine sustainability policies? Studying conservation policies and impacts on livelihoods. REDD+ probably cannot shift the tide against elite capture of forest benefits.

Editor's note: adds CIFOR DG posting on new data report releases recently on world forests

Trees covering an area twice the size of Portugal lost in 2014, study finds - Palm oil plantations are devouring forests rapidly worldwide, with west Africa becoming the new hot spot for tree loss, Wednesday 2 September 2015 04.00 BST; Data reveals that tree loss in Brazil and Indonesia is on the rise again – by 16% and 30% respectively since 2013 – despite longer term downward trends.. http://www.theguardian.com/environment/2015/sep/02/trees-covering-an-area-twice-the-size-of-portugal-lost-in-2014-study-finds

CIFOR DG: Seeing the big picture on the world’s forests - September 8, 2015 This post originally appeared on CIFOR’s Director General’s blog. By Peter Holmgren, CIFOR Director General..... This week we have the opportunity to compare different assessment of the world’s forests. FAO presents the results of the Global Forest Resources Assessment 2015 (FRA 2015) at the World Forestry Congress in Durban. Global Forest Watch has released new global satellite observations of tree cover reductions in 2014. And Nature has published an article describing over 400,000 field plots from national forest inventories that were used to count all of the world’s trees.
o, what do these different studies have to say about the forest resources of the world and how they change?... http://www.landscapes.org/cifor-dg-seeing-the-big-picture-on-the-worlds-forests/
  
Data streams from dozens of sources help companies measure the risk of deforestation in their supply chains by Stacy Collett By Stacy Collett   Computerworld | Sep 2, 2015 3:30 AM PT; Today, about a dozen of the largest commodity traders and buyers in the world use the app.  The Roundtable on Sustainable Palm Oil (RSPO) uses the tool for its alert and fire monitoring system to track fires and deforestation activity.  "Companies who are certified by RSPO had far fewer fire alerts" on their land, says Sanath Kumaran, head of impacts for RSPO in Kuala Lumpur, Malaysia. "During the last six months, only 10 fire hotspots occurred in RSPO-certified [land] compared to over 2,000 total fire hotspots in all other oil palm [land]."...http://www.computerworld.com/article/2977562/data-analytics/world-resources-institute.html

The Need for Development Is Missing in Defining Sustainable Palm Oil  Posted:  09/04/2015 11:51 am EDT  Robert Hii Sustainable Business Consultant; .... On the issue of carbon emissions, we in developed nations who make up a mere 20 percent of humans worldwide are responsible for a staggering 70 percent of global emissions . Simply put, if the intention to fight climate change on a global front is honest, developed countries including those in the European Union and North America would be mandating how much their citizens can consume. Doing this however, would likely mean high unemployment rates and poverty, which describes life today for millions of people in developing and underdeveloped countries.....In the case of palm oil, we "speak for the environment" by demanding that palm oil be produced sustainably. The popular definition of sustainable palm oil comes from Greenpeace and enjoys wide support by social media activists. Its definition focuses on protecting HCS or High Carbon Stock forests (meaning climate-change-fighting forests) while maintaining the rights of local peoples to either accept or reject palm oil plantations in their communities. The one factor they've failed to address is local communities that may want to clear HCS forests to grow palm oil. What is the solution there? Do we tell these villagers who own a few acres of primary forests that we will not accept any palm oil they grow as sustainable?... In the case of palm oil, we "speak for the environment" by demanding that palm oil be produced sustainably. The popular definition of sustainable palm oil comes from Greenpeace and enjoys wide support by social media activists. Its definition focuses on protecting HCS or High Carbon Stock forests (meaning climate-change-fighting forests) while maintaining the rights of local peoples to either accept or reject palm oil plantations in their communities. The one factor they've failed to address is local communities that may want to clear HCS forests to grow palm oil. What is the solution there? Do we tell these villagers who own a few acres of primary forests that we will not accept any palm oil they grow as sustainable?....http://www.huffingtonpost.com/robert-hii/the-need-for-sustainable-palm-oil_b_8085846.html

Forestry for a sustainable future – Making a difference beyond agreements 4 Sep 2015 BY Peter Holmgren; ....The WFC is considered the world’s most significant forestry event, organized by FAO every six years together with a host country. At 89 years old, it is also a long-standing tradition within the international community. The first congress was held in Rome in 1926, and Jakarta hosted the 1978 edition. This year, the WFC will be held in Africa for the first time. .....http://blog.cifor.org/32979/forestry-for-a-sustainable-future-making-a-difference-beyond-agreements#.VfTjSIywqpo 

Will Indonesia’s new palm oil subsidy undermine no-deforestation push? 1st September 2015 / Philip Jacobson & Sapariah Saturi - Officials are selling nascent CPO Fund on sustainability grounds, but experts fear it will do more harm than good... • Questions remain about whether the CPO Fund will carry environmental safeguards and how its resources will be divided between its two main purposes: helping farmers increase their yields and subsidizing biodiesel. • A senior adviser to the energy minister worries the subsidy, if administered haphazardly, could throw an unfortunate lifeline to the dwindling market for palm oil from deforestation, peatland coversion and land grabbing. • The man who designed the fund says it's all about sustainability because it will reduce dependence on foreign petroleum and shore up flagging palm oil prices. http://news.mongabay.com/2015/09/will-indonesias-new-palm-oil-subsidy-undermine-no-deforestation-push/

Can REDD+ shift the tide against elite capture of forest benefits? Probably not  25 Aug 2015 BY Esther Mwangi, Isla Duporge and Krister Andersson; REDD+ is the largest coordinated international attempt to reverse the trend of deforestation and forest degradation globally. It remains one of the most dominant items on the agenda of the United Nations Framework Convention on Climate Change (UNFCCC)....The lack of evidence from projects where participants are rewarded for performance means that there are few empirical lessons to draw from at this stage in REDD+ development. Criticism has been levied at REDD for unintentionally exacerbating existent inequalities; findings show that when tenure rights (de jure and de facto) are legally defined and secure in practice, this will allow for a more equitable benefit sharing. A recent study using two large datasets explored how tenure rights affect benefit sharing. The first dataset was drawn from International Forestry Research and Institutions and comprises 582 forest   oduct records across 350 user groups in 14 developing countries in Africa, Asia and Latin America. This work shows that where collective rights for harvesting forest products are secure, the benefits of these products are more equally distributed among participating individuals. However, this finding is dependent upon the level of ethnic diversity within the harvesting group. Where there are higher levels of ethnic diversity, lower equity is found in benefit distribution and vice versa. This implies that REDD+ projects in areas with high ethnic diversity need to enforce additional measures to prevent elite capture by privileged ethnic groups. ... http://blog.cifor.org/32241/can-redd-shift-the-tide-against-elite-capture-of-forest-benefits-probably-not#.VfUz7oywqpo

Multiple ways for Congo Basin forests to flourish and deliver: study  24 Aug 2015 BY Harry Pearl; ...Providing forest users with clear incentives to work together could reduce conflict and improve the management of Central Africa’s timber concessions, according to a new study.... http://blog.cifor.org/32387/multiple-ways-for-congo-basin-forests-to-flourish-and-deliver-study#.VfUz5oywqpo
Canopy commerce: forest conservation and poverty alleviation, Published 03 Feb 2012; Innovative approaches for protecting the future of Sierra Leone’s Gola Forest – globally important for its biodiversity and its carbon reserves – are being developed by a collaboration of conservation agencies and University of Cambridge researchers. Our goal is to find a mechanism by which richer countries can help one of the poorest countries in the world protect its nature at the same time as improving the livelihoods of the local communities. Dr Jeremy Lindsell (RSPB) Gola Forest, situated at the westernmost tip of a once extensive swathe of forest that stretched a thousand kilometres from Sierra Leone to Togo, is classified as a biodiversity hotspot of global significance. Its 71,000 hectares are home to over 330 species of bird, including the rare White-necked Picathartes and Rufous Fishing Owl, more than 500 species of butterfly, and a long list of threatened and endangered plants and animals...After a return visit for a follow-up survey, the researchers are now analysing the data, with results expected early in 2012. “All in all, the project will provide the first detailed formal policy evaluation of a major conservation programme,” said Kontoleon. “The results should allow us to derive reliable inferences on the livelihood and behavioural impacts of conservation policies.” - See more at: http://www.cam.ac.uk/research/news/canopy-commerce-forest-conservation-and-poverty-alleviation#sthash.0rR7472i.dpuf

Eye on Jokowi and Indonesia palm oil: Indonesia finance and health ministries mull sugar tax, Scorecard Mixed as Indonesia's Jokowi `Drifts' in First Year, PT Bank Mandiri - commodity-based provinces should find new sources of economic growth as the commodity boom is over

We'll keep an eye on Indonesia's new President Jokowi's view on palm oil and other related key economic issues and top level policy / regulatory issues.

Jokowi and 2015 Haze: Step-down on smallholder interest, Indon-Malaysia cooperation, Singapore haze clampdown
http://khorreports-palmoil.blogspot.my/2015/10/jokowi-and-2015-haze-step-down-on.html



30 November 2015: Indonesia finance and health ministries mull sugar tax


Indonesian Sugar-Tax Talk Chills Drinks Industry - Health concerns may prompt curbs on the growing taste for sweet beverages in Southeast Asia’s largest economy, By Ben Otto and Anita Rachman  Nov. 27, 2015; .... Finance officials in the world’s fourth most populous nation have asked the health ministry to study whether sugary drinks, including soda and Indonesia’s most popular bottled drink after water, tea, constitute a health threat, said Suahasil Nazara, head of the ministry’s Fiscal Policy Agency. That would make such drinks eligible to join an excise list of high-bracket tax items comprising tobacco—one of the country’s biggest tax contributors—and alcohol. ...Indonesia has taxed some sweetened beverages in the past under a luxury-goods tax, but stopped the practice in 2004. The taxes crippled drink makers, according to the local Beverages Industry Association, which said sales of sweetened beverages have averaged double-digit annual growth since taxes were lifted.... http://www.wsj.com/articles/indonesian-sugar-tax-talk-chills-drinks-industry-1448621453

Should There Be a Tax on Soda and Other Sugary Drinks? Supporters say it is an effective way to cut obesity. Critics say the health benefits are far less than claimed. July 12, 2015  http://www.wsj.com/articles/should-there-be-a-tax-on-soda-and-other-sugary-drinks-1436757039

22 October 2015: Scorecard Mixed as Indonesia's Jokowi `Drifts' in First Year, PT Bank Mandiri - commodity-based provinces should find new sources of economic growth as the commodity boom is over, Scandal-Hit Malaysia Risks Lost Decade. Sarawak asks for more than "palm oil, palm oil, palm oil" 

 

Scorecard Mixed as Indonesia's Jokowi `Drifts' in First Year by Neil Chatterjee Updated on October 20, 2015 — 3:00 PM HKT; Jokowi behind targets on growth, infrastructure, inequality. Some progress on bureaucratic reform, step backwards on graft....His popularity among voters and investors has fallen in a year marked by slowing economic growth, policy u-turns and controversy over appointments. Widodo, known as Jokowi, said on his Twitter account Tuesday that the past year was about laying foundations and the first step was often the hardest. “His first year in office has been characterized more by drifting through, rather than a seamless execution of a meticulously thought out master plan,” said Wellian Wiranto, an economist at Oversea-Chinese Banking Corp. in Singapore....Consumer confidence fell to more than a six-year low in September, in a country where domestic consumption makes up over half of the economy, and foreign direct investment has stagnated. A series of recent stimulus measures have amounted to tinkering rather than fresh cash or major structural reforms. “There is no evidence of a strategy to turn around the economy,” said Paul Rowland, an independent Jakarta-based political analyst. “Tweaks won’t do it unless they add up to a more coherent strategy that unshackles domestic and foreign investment.”...“The decision to rearrange a number of ministries also ate up a lot of time while new senior bureaucrat positions were filled, and it’s arguable that was unnecessary,” said Keith Loveard, head of political risk analysis at Jakarta-based security company Concord Consulting. “However, one year on there is a sense that the ship of state is settling on a steady course.”...INFRASTRUCTURE DEVELOPMENT. Jokowi pledged to build 30 new dams, 15 airports, 24 ports, and 3,258 kilometers of railroads among infrastructure plans. After a slow start, there are signs some projects are starting to get going. The government opened the taps for a Chinese-built dam in August and state companies agreed terms with China for a new railway to Bandung this month. Jokowi attended a ground-breaking ceremony for a $4 billion coal-fired power plant that he said would start after years of delays. Yet the Japanese investors in the project say they have not fully acquired the land they need.... FIGHTING CORRUPTION. Jokowi vowed after wining the July election to cut corruption by 70 percent by building new systems, such as electronic tax collection, and the remainder by adding staff to the anti-graft agency known as the KPK. This issue has perhaps been the biggest disappointment for his supporters. The KPK named Jokowi’s choice for police chief a suspect and the police retaliated by investigating the agency’s commissioners, leading several to step down. Since then, there have been few high profile arrests by the agency.... INEQUALITY. A “dangerous” level of inequality threatens the world’s fourth most-populous nation, Jokowi told Bloomberg in February. The economic slowdown isn’t helping. Around 43,000 workers in Indonesia lost their jobs between January and September, the Bisnis Indonesia newspaper reported. The country’s poverty rate was 11.25 percent in March, up from 10.96 percent in September before Jokowi took office.... http://www.bloomberg.com/news/articles/2015-10-19/scorecard-mixed-as-indonesia-s-jokowi-drifts-in-first-year

Analysis: The effect of commodity price changes on Sumatra and Kalimantan Mamay Sukaesih, Jakarta | Business | Wed, October 21 2015, 5:45 PM; .... Our analysis has revealed that commodity-based provinces should find new sources of economic growth in the future. The main reason is simply that the commodity boom is over, implying that they can’t rely on commodity-based development anymore. One of the alternatives is to promote resources-based industries such as manufacturing and adding the value of goods that have been produced in the regions. PT Bank Mandiri (Persero) Tbk. - See more at: http://www.thejakartapost.com/news/2015/10/21/analysis-the-effect-commodity-price-changes-sumatra-and-kalimantan.html#sthash.rdFSxar4.dpuf


Sarawak has to industrialise: CM 22 October 2015 by Patricia Hului BPO Newsdesk; ...In an interview with Bloomberg TV Malaysia, ‘Spotlight on Sarawak: Playing Catch-Up’ broadcast on its website Oct 21, the chief minister addressed the need for the state to industrialise, diversify its agricultural sector and increase infrastructural development....On the need for the state to industrialise, the chief minister said that Sarawak was no longer satisfied with only producing raw materials as in the old days. “We want to process these products ourselves so that we can retain the added value.” About 40 per cent of Sarawak’s economy is reliant on commodities, but contribution from manufacturing, construction, services and other industries is on the increase. “I have decided no more timber licensing, no more plantations. For the time being, give ourselves a respite and then perhaps eventually we will depend on our industry.” .... On the state’s palm oil industry, Adenan is looking to diversify the agricultural sector in Sarawak. “Food production is very slow and now we insist on palm oil, palm oil, palm oil. It’s good, but why can’t we grow other crops for production, food crops and so on,” he said, foreseeing increased interest in this area coupled with Sarawak’s availability of land for food production. Read more: http://www.theborneopost.com/2015/10/22/sarawak-has-to-industrialise-cm/#ixzz3pHYAZ1CD


A Case of Brazil Blight? Scandal-Hit Malaysia Risks Lost Decade by  Shamim Adam October 16, 2015 — 6:00 AM HKT http://www.bloomberg.com/news/articles/2015-10-15/a-case-of-brazil-blight-scandal-hit-malaysia-risks-lost-decade; Meet Malaysia, the new Brazil. Nearly felled by the Asian financial crisis in the late 1990s, the Southeast Asian nation recovered to become a global commodities juggernaut, known for its stable government and investor-friendly policies. Now, with its premier enveloped by a multi million dollar funding scandal, Malaysia risks being infected with the kind of economic malaise that has struck its emerging market counterpart in South America....http://www.bloomberg.com/news/articles/2015-10-15/a-case-of-brazil-blight-scandal-hit-malaysia-risks-lost-decade
Ringgit Falls as Malaysia Faces Oil-Revenue Pressures in Budget  by  Y-Sing Liau Updated on October 19, 2015 — 5:21 PM HKT  Budget will be ``one of the most difficult'': PM Najib. China growth beats forecasts, but still slowest since 2009.  http://www.bloomberg.com/news/articles/2015-10-19/ringgit-falls-as-malaysia-faces-oil-revenue-pressures-in-budget



19 October 2015: Greenpeace - Indonesia's new emission target a step back, other policy flip-flips, seeking dilution of sustainability pledges and policies for smallholders, illegal palm oil mills, Singapore haze angst targets pulp & paper, palm oil and banks


Indonesia’s new emissions target actually a step back: Greenpeace The new target might seem like an improvement over Indonesia’s previous commitment to cut emissions growth by 26 per cent over projected business-as-usual levels by 2020, but it actually represents a regression, Greenpeace says. http://www.eco-business.com/news/indonesias-new-emissions-target-actually-a-step-back-greenpeace/

Jakarta’s baffling rail flip-flops - Indonesia’s handling of the bidding for its first high-speed train, with reversals and mixed messages to Japan and China, added to the confusion foreign companies face as the government courts them to boost southeast Asia’s largest economy; Indonesia picks China to build high-speed rail project   Ben Otto  | The Wall Street Journal  | October 02, 2015 12:00AM http://www.theaustralian.com.au/business/wall-street-journal/indonesia-picks-china-to-build-high-speed-rail-project/story-fnay3ubk-1227552755589
 
China, Japan baffled by Indonesia bullet train decision Saturday, 5 Sep 2015 | 3:23 AM ETReuters; ...Indonesia's 11th-hour decision to scrap plans for the nation's first high-speed railway has sown confusion among top investors China and Japan, potentially undermining the strong foreign investment that has been a rare economic bright spot. China and Japan had been battling over the multi-billion dollar contract, until it was abruptly pulled in what appeared to be the latest in a series of regulatory flip-flops and erratic policy-making moves under President Joko Widodo. Indonesia's chief economics minister was left to explain to the two Asian giants on Friday the reason why Jakarta decided at the last-minute that the bullet train project was the wrong option for Southeast Asia's largest economy. "It looks like a sudden move because the recommendation was made after a review of both proposals," Teten Masduki, presidential chief of staff, told Reuters. "But the recommendation is in the best interest of the country."  .. Tokyo and Beijing had lobbied heavily for the $5 billion contract, each sweetening the terms of their bids up until Monday's deadline. Analysts believed that whoever had won would likely have been the front-runner for future high-speed rail projects in Asia, including one linking Kuala Lumpur and Singapore.... http://www.cnbc.com/2015/09/05/china-japan-baffled-by-widodo-decision-to-scrap-indonesia-bullet-train.html
 
 
Jokowi and 2015 Haze: Step-down on smallholder interest, Indon-Malaysia cooperation, Singapore haze clampdown
http://khorreports-palmoil.blogspot.my/2015/10/jokowi-and-2015-haze-step-down-on.html

 

9 September 2015: Jokowi to Discuss Drought, Wildfires With Key Aides, KPK leadership to fight natural resources corruption


Jokowi to Discuss Drought, Wildfires With Key Aides  Jakarta. By : Novy Lumanauw, Arnold Sianturi & Radesman Saragih | on 02:53 AM August 31, 2015; With the end of the dry season not nearly in sight due to this year's El Nino, wildfires raging out of control and parts of the country barely coping with thick smoky haze, President Joko Widodo is looking for solutions. Environment and Forestry Minister Siti Nurbabya was set to meet the president on Monday, along with key climate change advisers such as special presidential envoy Rachmat Witoelar and Sarwono Kusumaatmadja. "The problem of forest fires will be one topic of discussion," Teten Masduki, a spokesman for Joko, said on Monday morning. "A lot of issues will be talked about, but it's about coordination." Forest fires in Jambi and South Sumatra, meanwhile, continued to also cover parts of North Sumatra in smoke, causing problems for people in major cities such as Medan....The Meteorology, Climatology and Geophysics Agency (BMKG) is advising people in the region to wear face masks when they need to leave the house. Activists in Jambi say palm oil entrepreneurs and the government are not doing enough to prevent the fires or to contain them.... http://jakartaglobe.beritasatu.com/news/jokowi-discuss-drought-wildfires-key-aides/

Walhi to gather complaints on forest fires The Jakarta Post, Jakarta | National | Wed, September 02 2015, 4:48 PM; The Indonesian Forum for the Environment (Walhi) is setting up regional posts to accommodate complaints from the public related to losses caused by forest fires. The posts will be set up at district levels in five provinces: Riau, Jambi, South Sumatra, Central Kalimantan and West Kalimantan. Each post will be equipped with doctors and academics that will record health, ecosystem and social losses caused by the man-made disaster.“This is a new breakthrough. Usually we sued companies that caused fires without submitting data on loss experienced by the public. This time we will include the data to sue not only the companies but also regional and central governments for letting the companies cause the fires,” said executive director of Walhi, Abetnego Tarigan, in a press conference called “Where There are Concessions, There is Smoke” at Walhi headquarters in South Jakarta on Tuesday.So far one post  as been set up in Palangkaraya, Central Kalimantan, and it has been operating for a week.Walhi notes at least four types of losses are caused by the draining of high carbon stock peatland for agriculture use, the root reason for forest fires. They are losses to ecosystem balance, social and health, which lead to economic losses. - See more at: http://www.thejakartapost.com/news/2015/09/02/walhi-gather-complaints-forest-fires.html#sthash.pwErlp4b.dpuf

Smoky Haze Forces Jambi Schools to Close By : Radesman Saragih | on 08:17 AM August 29, 2015; A study by the local conservation group KKI Warsi and the Bogor Institute for Agriculture (IPB) estimates economic losses due to the fires to be at least Rp 716 billion ($50 million) so far this year. "There's losses due to palm oil plantations burning down on peatlands, there's losses due to flight and shipping disruptions, there's air pollution causing a lot of people to suffer respiratory tract infections and there's environmental damage," said Rudy Syaf, a spokesman for KKI Warsi. http://jakartaglobe.beritasatu.com/news/smoky-haze-forces-jambi-schools-close/

KPK leadership to fight natural resources corruption Abetnego Tarigan, Jakarta | Opinion | Wed, September 02 2015, 4:20 PM; Various civil society groups have raised the issue of corruption in the natural resources sector, with several cases occurring particularly in the oil palm and mining sectors, in which industry players are linked with regional heads of government....Through monitoring coordination and supervision, about 4,000 mining licenses in 12 provinces have been found to be questionable. The KPK has suggested annulment of such licenses, despite lackluster responses from regional administrations. According to the Indonesian Environment Forum (WALHI), only a small number of the licenses have been repealed, including those in Bangka Belitung (eight), South Sumatra (17), Jambi (184), South Sulawesi (33), Southeast Sulawesi (184), Central Sulawesi (85) and West Kalimantan (nine). The KPK has estimated state losses from corrupt licensing practices at Rp 1,000 trillion (US$71.4 billion).As part of the National Movement for the Rescue of Natural Resources, 29 ministries/institutions and 12 provincial administrations signed on Mar. 19 a memorandum of understanding regarding the eradication of corruption in the maritime, forestry and palm oil sectors. The movement was prompted by the need for cooperation between relevant sectors, ministries and institutions. The initiative has been further supported by the investigative and prevention efforts of the KPK, thus indicating the KPK’s growing role in the area of natural resources corruption eradication. - See more at: http://www.thejakartapost.com/news/2015/09/02/kpk-leadership-fight-natural-resources-corruption.html#sthash.pNZtYY9o.dpuf

30 August 2015: Indonesia Coordinating Economic Minister worries voluntary corporate pledges jeapordise small farmer prospects


Govt opposes zero-deforestation pledge by palm oil firms Hans Nicholas Jong, The Jakarta Post, Jakarta | Headlines | Sat, August 29 2015, 6:21 PM; In stark contrast to Indonesia’s commitment to reduce rampant deforestation, the government has surprisingly become a vocal opponent of a “zero deforestation” pledge signed by the four biggest palm oil companies in Indonesia.The Office of the Coordinating Economic Minister said on Friday that the pledge would jeopardize the country’s palm oil industry, currently the biggest in the world, as it puts restrictions on small farmers.“Oil palm plantations are the livelihoods of many of our people. The most effective driver of economic growth is through oil palm plantations,” the office's deputy for food and agriculture coordination Musdhalifah Machmud said on Friday......  http://www.thejakartapost.com/news/2015/08/29/govt-opposes-zero-deforestation-pledge-palm-oil-firms.html#sthash.BdBqwUSO.dpuf

18 August 2015: Jokowi says "let's work" and letter of credit implementation


Editorial: Time to Get to Work for Real Now  By : Jakarta Globe | on 13:15 PM August 14, 2015; Joko Widodo’s inaugural state-of-the-nation address as president this Friday came just two days after he carried out what was widely seen as a much-needed reshuffle to knock his economics team into shape. We realize the president is in a bind: he came into office just as Indonesia’s economic growth started grinding down to its slowest pace in five years, and the rupiah embarked on a perilous slide (whether the latter’s continued slide is an effect of the government’s recent policies is a whole other story). He is also beholden, on one hand, to his political benefactors, and on the other, to the people who expected a cabinet of professionals, not party appointees. Joko closed his speech with a rousing chant of “Let’s work!” Inspiring? Perhaps, but it invites an uneasy question: Just what has the government been doing for the past 10 months?... http://jakartaglobe.beritasatu.com/opinion/editorial-time-get-work-real-now/

Freeport's Export Halted Due to Letter-of-Credit Predicament By : Rangga Prakoso | on 09:21 AM August 11, 2015 Riza said there is no obligation to use letters of credit under Freeport's current working contract with the government, but that the company wanted to make a point of strictly complying with all of the ministry's regulations.  The mechanism is based on a regulation that the Trade Ministry issued in 2015 on the use of letters of credit for exports of specific goods.  The regulation stipulates that exports of commodities, such as mineral, coal, oil and gas and crude palm oil must use letters of credit issued by a domestic foreign-exchange bank — lenders that are allowed by the central bank to perform international transactions.  The government wrote the regulation in an attempt to ensure exporters keep orderly foreign-exchange records. http://jakartaglobe.beritasatu.com/business/freeports-export-halted-due-letter-credit-predicament/

 

14 August 2015: Jokowi reshuffles Cabinet in bid to boost economy


Jokowi reshuffles Cabinet in bid to boost economy Published: 4:16 AM, August 13, 2015
JAKARTA — Less than 10 months into his term, Indonesian President Joko “Jokowi” Widodo yesterday fired four Cabinet ministers, including crucial members of his economic team, in a much-anticipated reshuffle that reflected growing frustration with his government’s struggles to improve the country’s sluggish economy. The economy is growing at its slowest pace since 2009, with gross domestic product rising only 4.7 per cent year on year in the second quarter, while the rupiah is at its lowest level against the dollar since the late 1990s. The biggest casualty of the reshuffle was Mr Sofyan Djalil, Coordinating Minister for Economic Affairs, who was replaced by Mr Darmin Nasution, the former governor of Bank Indonesia. Mr Sofyan has been reassigned to the post of Minister for National Development Planning. The post of Trade Minister went to Mr Thomas Lembong, a private investment fund manager, replacing Mr Rachmat Gobel, who had mired himself in controversies. Most recently, Mr Gobel’s decision to slash cattle imports led to beef prices surging, forcing the government to backtrack and increase imports. “Indonesia and the President are aware of a rising negative perception of its trade policies, and Lembong’s appointment is a corrective measure for that,” said Jakarta-based analyst Douglas Ramage. In addition, Mr Widodo appointed Mr Rizal Ramli, who served as coordinating minister for the economy more than a decade ago, as Coordinating Minister for Maritime Affairs, a sector the President is counting on to help his economic turnaround plans.... http://www.todayonline.com/world/jokowi-reshuffles-cabinet-bid-boost-economy

Editorial: Realigning the economic team The Jakarta Post | Editorial | Thu, August 13 2015; The main message Jokowi conveyed through the realignment of the economic portfolios is the urgent need for strong teamwork. Only with solid teamwork will the government be able to demonstrate how the various individual policies hang together in moving toward the broad direction into which the economy is being steered. Yet more important is that both Jokowi and Vice President Jusuf Kalla must protect the economic team from intervention by vested interests. - See more at: http://www.thejakartapost.com/news/2015/08/13/editorial-realigning-economic-team.html#sthash.K0iGi71v.dpuf

Jokowi inaugurates six new ministers The Jakarta Post, Jakarta | National | Wed, August 12 2015, 3:47 PM .... http://www.thejakartapost.com/news/2015/08/12/jokowi-inaugurates-six-new-ministers.html#sthash.ceeBWLoB.dpuf


16 July 2015: Jakarta Post Editorial - "righting" a 1999 Forestry Law wrong that has resulted in complaints and large inequalities in landholdings; UOBKH Indonesia 2H2015 roadmap

Khor Reports note: Another VERY important 1999 policy change was that year's Forestry Law. Thus, it was the World Bank / IMF liberalization policy package for Indonesia that helped lay the essential groundwork for the state to promote plantation private sector investment. State Forest Areas was an important move and so was the removal of old low 15-20% ceiling for corporate farm (inti) vs smallholder (plasma). The ratio was reversed to the current 80:20 inti:plasma. No surprise that these key policy changes sparked big FDI and DDI, enhanced by the commodity-biofuels boom. Subsequently, complaints of detrimental impacts to smallholder and indigenous peoples development and large inequalities in landholdings.

Editorial: Tackling inequality, land conflict The Jakarta Post | July 13 2015 | 8:48 AM The business community should not be surprised, nor inordinately worried, about the March regulation of the Environment and Forestry Ministry regarding the reallocation of up to 30 percent of industrial forests and forest concession areas to indigenous people. Rather, business players should have anticipated the regulation after the Constitutional Court’s ruling in May 2013 that the customary forests of indigenous peoples should not be classed as State Forest Areas. The civil society organization for indigenous people’s rights (AMAN) that asked for the juidicial review of the 1999 Forestry Law quoted the government’s own statistics in 2012 that revealed that there were some 32,000 villages whose lands overlapped areas classed as State Forest Areas, as defined in the 1999 Forestry Law....Many companies now own and manage pulp and tree crop (mainly oil palm) plantations ranging in size from a few hundred thousand to one million hectares. We are afraid that if this condition is not gradually corrected, mounting problems of inequality of income, wealth and land conflicts could threaten the long-term sustainability of the plantation industry, even the macroeconomic stability. We believe that harmonious and mutually-beneficial cooperation between big plantations and smallholders is the most effective way of expanding tree-crop plantations such as oil palm and rubber without widening inequality in landholding....http://m.thejakartapost.com/news/2015/07/13/editorial-tackling-inequality-land-conflict.html?sthash.vV5yJalC.mjjo

Editorial: Tackling inequality, land conflict | The Jakarta Post http://m.thejakartapost.com/news/2015/07/13/editorial-tackling-inequality-land-conflict.html?sthash.vV5yJalC.mjjo

UOBKH STRATEGY - INDONESIA Road Map 2H15 Feedback; RECOVERY IN 2016 ON THE BACK OF GOVERNMENT STIMULUS - Mixed feedback. Our conversations with local and regional fund managers regarding our upgrade on Indonesia received mixed feedback. Some fund managers view that in 2H15, the performances of corporate earnings and the JCI could be better as government spending picks up. Some are skeptical on the execution and currency risk involved in the infrastructure roll-out....
 Large government stimulus translates to earnings growth. Analysing corporate earnings and stock market performance post various stimulus measures in China,Japan, the US and the EU, we found corporate earnings were likely to grow post the stimulus and the respective stock markets should appreciate if the stimulus is larger than 2% of GDP.
     Signs of life in construction. Channel checks with construction companies revealed 53% yoy higher bookings ytd. The latest month suggested a very large pick-up. If this is sustained (especially if the bookings are public-sector projects, we should be positive on the construction sector .....
 Ramping up spending at the Ministry of Transportation. Channel checks with the Ministry of Transportation (MOT) revealed that Minister Ignasius Jonan has pushed for spending from MOT’s Rp60t 2015 budget to be realised at the rate of 15% of budget per month starting 2H15. Despite the slow roll-out due to planning, the MOT revealed that the first route of the sea toll project has started with short sea shipping from Lampung to Surabaya via a regular Roro ferry.....

2 July 2015: Indonesia’s Military Resurgence , shift away from US dollar transaction, Jokowi's feud with Megawati

Indonesia’s Military Resurgence Posted on June 17, 2015By Warren Doull; Jokowi gambles on trading democracy for stability In recent months, Indonesia’s embattled President Joko Widowo has overseen a remarkable resurgence of military power over Indonesian society. Beginning in 1999, the military had been eased out of the dual role of dwifungsi – safeguarding the country against both external and internal threat – but the military now to some extent is resuming it. It has agreements in place to distribute fertilizer to farmers, guard prisons, and assist the national anti-narcotics agency. Talks are underway to also give it a role assisting the Corruption Eradication Commission and the ministries of transportation and fisheries.  “I want the military to be involved more in humanitarian missions in the future,” the Defense Minister Ryamizard Ryacudu said earlier this month. The military even seems to be turning against civil society, conducting a nationwide campaign to tell Indonesia’s youth that Indonesian NGOs and civil society organisations could be vehicles for foreign interests.... Earlier this month, Jokowi even stood by while the corrupt national police asserted their right to ‘help’ select new commissioners for the Corruption Eradication Commission. These concessions have allowed his relationship with PDIP and senior police to remain on manageable terms. In November 2014, Jokowi approved military plans to build two new army commands: one in Papua and the other in Sulawesi.  His concessions to the military are an attempt to befriend an institution that has played a role in the early departures of two previous civilian presidents: Habibie in 1999 and Wahid in 2001. These concessions are also an attempt to empower the military as a counterbalance to the increasingly arrogant police force.....While safeguarding himself against political maneuvers by the military, police force and PDIP, Jokowi has begun to take on other groups. In November 2014, he took on the illegal logging industry, maintaining a six-month moratorium on the issuance of all forest-exploitation permits that began under the previous government. In May, he renewed the moratorium. Also in May, he took steps against Indonesia’s powerful oil mafia via a newly-established anti-energy mafia committee that has succeeded in disbanding three corrupt government institutions: Pertamina Energy Trading Limited (PETRAL) and two of its subsidiaries. ... For reasons either of domestic politics or real conviction, Jokowi has identified new foreign adversaries. He has ordered the burning of encroaching fishing vessels and executed foreign drug smugglers. A decision to ban transactions and invoicing in US dollars is scheduled to come into effect on July 1, expected to cause chaos in the business community. Jokowi has also taken on opposition parties, who said his health cards and smart cards to expand social welfare were insufficiently explained and unclearly financed.....Environmental groups have expressed doubts about Jokowi’s ability to protect forests. Earlier this year, they noted that while rates of illegal logging have declined steadily in recent years, the legalized conversion of forests to plantations for palm oil has gone through the roof. Environmental activists aren’t feeling very safe either, since one was murdered in March 2015 in Jambi province and another in May 2015....http://www.asiasentinel.com/politics/indonesia-military-resurgence/2/

Jokowi’s Feud With Mega Colors Indonesian Politics - The Corruption Eradication Commission is caught in the middle of it by Asia Sentinel Posted on June 22, 2015; Relations between Indonesian President Joko Widodo and Megawati Sukarnoputri, the woman who was instrumental in putting him in power, are continuing to deteriorate, with Megawati’s Indonesian Democratic Party of Struggle (PDI-P) pushing a bill to diminish the clout of the powerful Corruption Eradication Commission and Jokowi saying he has no plans to revise the law governing the commission. Jokowi, the popular former governor of Jakarta and a longtime member of the PDI-P, rode the party’s machinery to victory in the 2014 presidential election over Prabowo Subianto, his opponent.  Today, however, he has little apparent support in the party, few allies in the country’s national institutions and will only need voter support if he runs for reelection in 2019.  The rift with Megawati has been growing for months...In April, at the PDI-P’s party enclave in Bali, Megawati delivered a speech with Jokowi sitting in the audience that in effect told the President  he was a product of the party and that his job was to remain in its service. Indonesia’s system of democracy, she said “regulates that the president and vice president naturally enforce a political party’s policy line,” she said.   She said she had faced “many betrayals,” adding that “multiple times I was stabbed in the back” because of “political ambitions for power.”  It was a humiliating moment. Jokowi was not invited to speak at the congress. She is also said to be angry because the PDI-P was given only four positions in the 34-member cabinet last October – no more than any of the other parties in Jokowi’s coalition....
http://www.asiasentinel.com/politics/indonesia-jokowi-feud-benefactress/

Jokowi and the mysticism of Indonesian politics - In Javanese belief, Jokowi is seen by many as the messianic Ratu Adil (Just King). Photo: Reuters By Johannes Nugroho Published: 4:16 AM, June 23, 2015; ....in Indonesia, ardent supporters of President Joko “Jokowi” Widodo are having a difficult time acknowledging his blunders. He was, after all, seen by many as the messianic Ratu Adil (Just King), prophesied to usher in a golden age for the country. When the President, better known as Jokowi, nominated police general Budi Gunawan as the sole candidate for the position of chief of National Police, there was a general outcry of disbelief. Given his publicly declared commitment against corruption, the decision came as a surprise, especially as the Corruption Eradication Commission (KPK) had told Mr Widodo the general was under investigation for graft. Criticised for bowing to the pressure from his political patron Megawati Soekarnoputri, chairwoman of the Indonesian Democratic Party of Struggle (PDI-P), the President proved himself willing to compromise his stance on corruption....http://www.todayonline.com/world/asia/jokowi-and-mysticism-indonesian-politics?singlepage=true



27 June 2015: Indonesia May Replace Economics Team, VP Kalla says

Indonesia May Replace Economics Team, Vice President Says - Jusuf Kalla says speeding up spending on stalled infrastructure projects is priority By Ben Otto And Anita Rachman  June 26, 2015 8:41 a.m. ET; JAKARTA, Indonesia—A cabinet shake-up is coming and could bolster the Indonesian government’s economics team as it struggles to reverse a downturn in Southeast Asia’s largest economy, Vice President Jusuf Kalla said Friday. “We’ll change [to create] a better team” after evaluating all ministers, Mr. Kalla said in an interview.  Pressure has been building on President Joko Widodo to shake up his cabinet as his programs to...
http://www.wsj.com/articles/indonesia-may-replace-economics-team-vice-president-says-1435322407

26 June update note: Traders point out that new Indonesia levies applies to corporates and NOT smallholders

25 June 2015: Indonesia palm oil - levies for prices below $750 and export taxes if prices exceed $750; Gapki seeks CPO Fund support for replanting efforts as well as biodiesel subsidies and other industry development efforts; acknowledges short-term costs of levies but expects positive effects in one year; Jokowi administration prepares areas for sugar, cattle investors in Eastern Indonesia, but NGOs vow action

 Port infrastructure, replanting issues challenge govt’s CPO push Grace D. Amianti, The Jakarta Post | Business | Wed, June 24 2015; Indonesia, the world’s top palm oil producer, still needs to improve its port infrastructure and boost replanting to increase competitiveness amidst a government push on the major industry, a business group says. The two issues are expected to be addressed by the government’s recent establishment of the crude palm oil supporting fund (CPO Fund), which will collect levies from CPO exporters to be channeled into the development of the industry, as well as biodiesel subsidies, according to the Indonesian Palm Oil Producers Association (Gapki). The business group, acknowledging that the levy will create additional short-term costs, welcomed the government’s funding initiative, as it is expected to develop and improve competitiveness of the industry in the international market.“Infrastructure problems, including industrial cluster ports, have been one of our main concerns regarding our palm oil competitiveness,” Gapki chairman Joko Supriyono said after discussing a road map of the country’s palm oil industry with the Industry Ministry.“We expect that the levy will create positive effects in one year, but on top of that, we also hope that the fund will support replanting efforts, which are currently urgent,” he added.....The levies imposed on palm oil exporters will consist of a US$30 per ton charge on processed palm oil and $50 per ton on crude palm oil, if prices fall below $750 per ton, according to a Finance Ministry regulation.If prices exceed $750 per ton, palm oil producers will continue to pay export taxes of between 7.5 and 22.5 percent, as required by existing regulations. Currently, CPO trades above $670 per ton and its benchmark price fell nearly 15 percent last year. - See more at: http://www.thejakartapost.com/news/2015/06/24/port-infrastructure-replanting-issues-challenge-govt-s-cpo-push.html#sthash.xwXWXp5M.dpuf


Govt prepares areas for sugar, cattle investors; Grace D. Amianti, The Jakarta Post, Jakarta | Business | Thu, June 18 2015, 9:01 AM;  The government has prepared three areas in eastern Indonesia for new cattle farms and sugarcane plantations, Agriculture Minister Amran Sulaiman said in Jakarta on Wednesday. Speaking after a meeting with the Investment Coordinating Board (BKPM) head Franky Sibarani, Amran said the government had prepared three regions — Southeast Sulawesi, Merauke in Papua and the Aru Islands in Maluku — as the main sites for at least 10 sugar factories and sugarcane plantations for new investors. Amran said his ministry and the investment board would work together to continue removing barriers so that interested investors would be able to realize their investment plans in these two important sectors. He said as many as 26 foreign investors had expressed an interest in developing sugar refineries and sugarcane plantations, while nine others wanted to enter the cattle business. The 26 investors who expressed a keen interest in entering the country’s sugar industry consisted of 11 refined sugar producers and 15 sugarcane plantation companies, Franky said.
“There are also around two to three Japanese investors who are interested in investing in the sugar industry. However, most of the time, in the sugar sector, foreign direct investors choose to first collaborate with their local partners in joint-venture companies,” Franky said. According to his ministry’s calculations, Amran said, a sugar refinery with a capacity to process 10,000 tons of sugarcane per day would cost about Rp 5 trillion (US$374.4 million) to build. The Agriculture Ministry has also run the plan by the Environment and Forestry Minister Siti Nurbaya, who agreed that the land in the three regions would be able to support the industry, Amran added. “We are planning to allocate 500,000 hectares of land in the three regions, calculating that one mill with a plantation will need at least 50,000 ha of land,” Amran said. Aside from the sugar industry, Amran said at least nine foreign and domestic investors also showed an interest in investing in Indonesia’s cattle sector, which would be located in regions such as East and West Nusa Tenggara, Buru Island in Maluku and East Kalimantan. - See more at: http://www.thejakartapost.com/news/2015/06/18/govt-prepares-areas-sugar-cattle-investors.html#sthash.cpdfVvip.dpuf

Palm oil isn’t the only junk food ingredient threatening Indonesia’s forests by Margaret Badore (@mbadore) Science / Climate Change June 23, 2015  Much attention has been paid to the role of palm oil the loss of Indonesian forests, but plans for expanded sugarcane plantations are more bad news. Indonesia is among the countries with the highest rates of deforestation in the world. Between 2000 and 2012, over 6 million hectares of primary forests were cut down, according to a study published in Nature Climate Change. Demand for timber and wood pulp is a factor in forest loss, as is conversion of forest to produce agricultural products. Deforestation is a serious threat to the local communities who depend on the forests for their traditional livelihoods. The result is not only a loss of local biodiversity and cultural heritage, but also a large contribution to global warming as the rich carbon sink embodied by natural forests is lost. For many consumers in the U.S. and Europe, palm oil is the commodity of concern, as it's found in everything from cookies to ice cream to shampoo. Forest is regularly cleared to make way for palm oil plantations, which is largely grown for an export market. But last week, the Indonesian government announced that it’s setting aside 500,000 hectares for a different crop: sugarcane. According to The Jakarta Post, 26 foreign investors have expressed interest in sugarcane plantations and refineries, which are planned for three different regions of Indonesia, including the Aru Islands. The announcement goes against earlier government statements, in which the Minister of Forestry announced that sugarcane permits would be cancelled in the Aru Islands, due to unsuitable land conditions. Environmental advocates and indigenous groups have criticized the announcement and vowed to fight it, according to Forest Watch Indonesia, an independent monitoring network.... http://www.treehugger.com/climate-change/palm-oil-isnt-only-junk-food-ingredient-threatening-indonesias-forests.html

21 June 2015: Rising unemployment worry for Jokowi - youth unemployment already over 20% in 2013, slow spending on infrastructure and shortage of skilled labour, purchasing power - consumption takes a hit

Rising unemployment piles up problems for Indonesian president - Reuters By Eveline Danubrata and Cindy Silviana 8 hours ago; JAKARTA (Reuters) - Indonesian companies are shedding jobs as they grapple with the weakest economic growth in six years, adding to the troubles facing President Joko Widodo, who was elected last year on pledges to dig the country out of a rut. Government data might suggest no cause for alarm - unemployment was 5.81 percent in February, up only slightly from 5.70 percent a year earlier - but the official numbers are notoriously unreliable and don't adequately cover the informal sector, which is two-thirds of Southeast Asia's biggest economy.
Recent reports of heavy lay-offs across the country paint a bleaker picture, and business executives, recruitment firms and jobseekers say it is getting worse....... Young people are being hit hardest; the International Labour Organization estimated the youth jobless rate was more than 20 percent in 2013, and economists believe it is higher now. About a third of the workforce is aged 15 to 29, a youth bulge that could bring Indonesia, a country of 250 million people, the sort of demographic dividend China and South Korea enjoyed a generation ago - but only if there are jobs for the 2 million people joining the workforce every year. "The government doesn't have a blueprint for labor absorption," said property businessman Hariyadi Sukamdani, chairman of the Indonesian employers' association. ........When he took office eight months ago, Widodo said he would pour billions of dollars into infrastructure and foster growth in manufacturing. But the promised splurge on roads, power plants and ports has not materialized, largely because of bureaucratic hold-ups and land disputes, and a shortage of skilled labor is holding back growth in value-added industries. Miners have been hammered by a double whammy: a ban on mineral ore exports and a sharp drop in commodity prices.
Meanwhile, labor-intensive industries such as textiles and manufacturing have been hit by the rupiah's slide to a 17-year-low, which has raised the cost of imported raw materials ........Unemployment in turn is hitting consumption, which makes up more than half of Indonesia's economy. Automobile sales in May fell 18.4 percent from a year earlier, the ninth decline in a row. "Stocks are piling up because nobody is buying. The people's purchasing power is weak," said Ade Sudrajat, head of Indonesia's textile association. "This has never happened before in the last 45 years.".....At job fairs in Jakarta the gloom is palpable... http://news.yahoo.com/rising-unemployment-piles-problems-indonesian-president-033557677--sector.html

16 June 2015: Jokowi's key Econ Coordinating Minister presides over FGV-Eagle High strategic partnership announcement and BLU (new agency) for $30-50/tonne levy targeted at oil palm farmers - growers to support biodiesel segment (and hoping to boost palm oil prices in longer term).

16 June 2015: FGV - Eagle High deal - The Edge reports 23% down payment prior to S&P agreement and Peter Sondakh / Rajawali cash raising and strategic deal witnessed by Sofyan Djalil (Econ Coordinating Minister) and Malayisa MITI's Mustapa Mohamed - Jakarta Globe

Rajawali Piles Up Cash, Gets Ready for More Acquisitions By Vanesha Manuturi on 05:08 pm Jun 14, 2015.... The venture would mark Rajawali’s second sale this year as the group works to focus on its other core businesses: property and mining.... Peter (Sondakh) built his reputation by buying then selling companies with a hefty profit in the past decade. The conglomerate’s most lucrative deals include the sale of Bentoel International Investama for $494 million in 2009 to British American Tobacco. In 2010, Rajawali sold $1 billion worth of shares in Semen Gresik, which it bought from Mexican cement maker Cemex for $337 million in 2006.....The business conglomerate — whose businesses range from palm oil, property to mining — signed an agreement with executives from Felda Global Venture on Friday, witnessed by Indonesia’s Coordinating Minister for Economy Sofyan Djalil and Malaysia’s Minister of International Trade and Industry Mustapa Mohamed.
The acquisition deal is expected to be completed by August
, according to Darjoto. “This strategic partnership is a great collaborative example that is beneficial to both Indonesia and Malaysia,” Darjoto told reporters after the signing event in Jakarta on Friday.
http://thejakartaglobe.beritasatu.com/business/rajawali-piles-cash-gets-ready-acquisitions/

More here: http://khorreports-palmoil.blogspot.co.uk/2015/04/corporate-news-indomie-morocco-delta.html

15 and 10 June: Indonesia delays start date for palm export levy to July 1 - Reuters; new Indonesia agency (BLU) under Office of the Coordinating Economic Minister to be completed for near term start of $20-50 levy; more here: http://khorreports-palmoil.blogspot.co.uk/2014/07/biodiesel-news-update-5.html

8 June 2015:  Indonesia Is Using Drones to Catch Tax Cheats 

Indonesia Is Using Drones to Catch Tax Cheats  by Chris Brummittand Herdaru Purnomo June 3, 2015 — 11:00 PM BSTUpdated on June 4, 2015 — 5:04 AM BST  The tax drone cometh. Above the vast forests of oil-palm and rubber trees in Sumatra and the scattered tin mines on islands to its east, the Indonesian government is flying unmanned aircraft to catch cheats who under report the size of their plantations or the extent of their mineral extraction. “Mines and plantations make good profits just taking stuff from nature,” said Samon Jaya, head of the tax office in South Sumatra and Bangka-Belitung islands. “But they don’t pay enough tax. This has to stop.” For Indonesia’s cash-strapped government, policing revenue across a chain of 17,000 islands that would stretch from New York to Alaska is no easy task. Remote areas on the islands of Sumatra and Borneo, where most of the palm oil trees are grown, are difficult to access and the government can’t afford a dedicated satellite or helicopters. Out of a population of 250 million, only about 900,000 Indonesians submitted a tax return last year, and the country’s tax-to-gross domestic product ratio of about 11 percent is below the Asia-Pacific region’s average. Jaya says the mines and plantations in his jurisdiction only pay about 30 percent of the tax they should. The industries, along with the rest of agriculture, forestry and fisheries, account for about a quarter of the nation’s nominal GDP. President Joko “Jokowi” Widodo wants to plug such leaks to help fund a more-than $400 billion infrastructure program. Since he took office in October, Jokowi has offered to exempt citizens from penalties if they settle unpaid taxes. He’s also raised pay for collectors. http://www.bloomberg.com/news/articles/2015-06-03/drones-seek-out-tax-cheats-in-indonesia-s-palm-oil-plantations



28 May 2015: Jokowi wants to lift GDP to 7 percent within five years, in part by cutting logistics costs that account for almost a quarter of the $811 billion economy - $6 billion port revamp - Bloomberg

Sinking Indonesia Docks,  Idle Ships Spur $6 Billion Port Revamp - President Joko Widodo wants to cut logistics costs to drive domestic trade and increase exports  'By'Neil Chatterjee, Fathiya Dahruland Chris Brummitt  May 27, 2015; Jokowi, who turns 54 on June 21, plans to link industrial centers in Jakarta to a new port in the capital by building a road and raising canal bridges to accommodate barges. In January, the government broke ground on a new deep-sea port in Medan on Sumatra. Jokowi wants to start constructing four more ports in October and expects to have finished an offshore project begun earlier at Kalibaru in Jakarta by then. It’s all part of his commitment to drive domestic trade and increase exports of everything from palm oil to cars. “When we have good infrastructure, there’s connectivity from city to city, from province to province, from island to island,” Jokowi said in a February interview with Bloomberg in his office, where he displays a bust of Indian independence leader Mahatma Gandhi. “There is connectivity to ensure that our economy will grow fast.” Jokowi has reason to act quickly. Gross domestic product in Southeast Asia’s biggest economy grew 4.7 percent in the first quarter of 2015, the weakest since the financial crisis. He wants to lift that to 7 percent within five years, in part by cutting logistics costs that account for almost a quarter of the $811 billion economy........

1 May 2015: Trans Sumatra Toll Road (JTTS), the Bakauheni quay and double track railway will support the distribution of logistics for both the agriculture and plantation sectors in all provinces across Sumatra

Trans Sumatra toll road will support logistics: Jokowi Oyos Saroso HN, The Jakarta Post, Bandarlampung | Business | Thu, April 30 2015, 7:51 PM; President Joko “Jokowi” Widodo has said the Trans Sumatra Toll Road (JTTS), the Bakauheni quay and double track railway will support the distribution of logistics for both the agriculture and plantation sectors in all provinces across Sumatra island when the facilities are complete.“Industrial areas around the toll road will develop more significantly. This will support Indonesia’s economic growth,” he said on Thursday.The president was speaking at an event to mark the groundbreaking of the Bakauheni-Terbanggi Besar toll road construction project in Sabahbalau village, Tanjungbintang district, South Lampung.The Bakauheni-Terbanggi Besar toll road is part of the 2,818-kilometer JTTS project. (ebf) - See more at: http://www.thejakartapost.com/news/2015/04/30/trans-sumatra-toll-road-will-support-logistics-jokowi.html#sthash.LNLG4bZX.dpuf


28 April 2015: Indonesia’s Joko Loses the Economic Plot  - Asia Sentinel

Indonesia’s Joko Loses the Economic Plot Posted on April 22, 2015; ....President Joko Widodo said Indonesia is “an incredible place to invest” and invited the participants “to join our incredible people on an incredible journey and make incredible profits.” But mounting protectionist policies have ruled Indonesian economic policy for the past several years and they are not going away. Investors complain that it is getting harder not easier to invest in “incredible” Indonesia....... From moves to force banks and other companies to place their data centers onshore to making dollar transactions illegal and even banning the sale of beer in mini markets, a number of often capricious and confusing policies have foreign investors and others wondering if Indonesia wants to withdraw from the world......“I heard a presidential advisor in a top-level meeting say globalization has been bad for Indonesia,” said one businessman with good political connections. “This is being taken seriously.”
The recent decision to ban dollar transactions and invoicing by July 1 is an example. Seemingly designed to shore up the weakening rupiah, trading at lows not seen since 1998, it threatens long-standing contracts, insurance policies and investment tenders. It has businesses scrambling to understand what to do now.  The rupiah is the worst-performing currency in Asia this year, and foreign exchange reserves dropped by almost $4 billion in March as the central bank stepped in to support the rupiah....... Eko Yulianto, acting director of money management at Bank Indonesia, told Reuters that with the new regulation, the bank aims to reduce current demand of at least $6 billion each month for domestic transactions. “We don’t want a dollarized economy so we need to uphold the sovereignty of the rupiah,” Eko told reporters at a briefing...........Other companies worry about a staggering 40 percent target to increase tax collections for 2015 over the previous year. The drive has resulted not in an increase in the small number of Indonesians who actually pay taxes but still more actions against companies who suddenly find routine logistic deductions and other charges denied. In the first quarter, tax collection did not even reach levels from a year earlier........
  http://www.asiasentinel.com/econ-business/indonesia-jokowi-loses-economic-plot/

22 April 2015: Papua food estate project to be revived, Norway PM  - Jokowi stressed environmental commitment, REDD+ program and moratorium extended, recognizes "cultural change" needed to curb deforestation

Govt to revive food estate project in Papua Linda Yulisman, The Jakarta Post | Business | Thu, April 16 2015, 8:03 AM; With its high food self-sufficiency target, the government is considering reviving the stalled “food estate” program of the prior administration by involving private and state-owned companies.The extensive commercial farming will focus on rice, corn and soybean — all are food crops laid out in the self-sufficiency goal, according to State-Owned Enterprises Minister Rini Soemarno. “We will synergize the whole processes from seeding to fertilizing,” she said.State-owned enterprises, such as fertilizer producer PT Pupuk Indonesia Holding Company, seedling company PT Sang Hyang Sri and agribusiness firm PT Pertani, will take the lead in the projects, Rini said.Designed in the early days of Yudhoyono’s administration in 2009, the project was meant to integrate farming and food-based energy generation to replicate the success story of Brazil’s large-scale agricultural projects.... By last year progress had stagnated in the completion of an environmental analysis (Amdel) and in provincial spatial planning, Agriculture Ministry’s director general for agriculture infrastructure and facilities Gatot Irianto told The Jakarta Post.“The stocktaking of customary land is a difficult thing and this must be endorsed further,” he said, adding that he viewed the need to make the planned food estate a special economic zone to enjoy special treatment to enable implementation. Despite the snail-paced progress in the past, Minister Ferry said the planned project could, nevertheless, begin as soon as the second half of this year..... With the strategic location of Merauke near the sea, it will be easy to transport the output to other areas once seaports are established, according to Ferry.Investment Coordinating Board (BKPM) chief Franky Sibarani said the broader Indonesian food sector might receive investments this year, notably from foreign companies.“We’ve heard about interest by American and Japanese firms to invest in growing corn and cassava,” he said..... http://www.thejakartapost.com/news/2015/04/16/govt-revive-food-estate-project-papua.html#sthash.OzWpIE6x.dpuf

Norway PM: Jokowi Stressed Environmental Commitment By Randy Fabi on 06:22 pm Apr 15, 2015; President Joko Widodo welcoming Norwegian Prime Minister Erna Solberg at the State Palace on Tuesday. (Antara Photo/Yudhi Mahatma); Jakarta. President Joko Widodo has assured Norway, which has pledged up to $1 billion in aid to help preserve Indonesia’s forests, that he is as committed to the environment as his predecessor, the Norwegian prime minister told Reuters. Soon after coming into office in October, Joko dissolved the independent National Reducing Emissions from Deforestation and Forest Degradation Agency, merging it with the Environment and Forestry Ministry. That raised concern among green activists that Indonesia might be rolling back on its climate deal with Norway, signed in 2010 by then-president Susilo Bambang Yudhoyono.
“We also have been a bit anxious about whether the new government would continue at the same pace as the old government. I think they are back on track,” Norwegian Prime Minister Erna Solberg said in an interview late on Tuesday after meeting with Joko in Jakarta. Indonesia imposed a temporary moratorium on clearing forests as part of the deal with Norway. A government official said earlier this month the Joko administration would extend the ban. Under the deal, Indonesia will receive payments based on the amount of reduced deforestation. But environmental groups say forest clearing has accelerated due to an expansion in mining and palm oil plantations. “We have become more realistic on how fast you can achieve results,” said Solberg, adding that Indonesia needed “cultural change” to successfully curb deforestation..... http://uk.reuters.com/article/2015/04/15/indonesia-norway-environment-idUKL4N0XC1UU20150415

18 April 2015: The race for a slice of China’s manufacturing is part of Indonesian President Joko “Jokowi” Widodo’s effort to reduce the country’s dependence on exports of minerals and palm oil

Is Indonesia the world’s next China? Published: 4:16 AM, April 11, 2015; Indonesia is looking to recreate the success of Shenzhen, the marshy village in southern China that became the heart of that nation’s industrial expansion in the late 1990s. Now China is too expensive for many factories, and industries that poured money into cities from Shenzhen to Shanghai for two decades are looking for somewhere with lower costs and lots of cheap workers.... “The great China boom was really bad for the South-east Asia economies,” said Mr Tim Condon, the Singapore-based head of Asia research at ING Groep. “With the China slowdown, all that moves in reverse. South-east Asia’s manufacturing sector is the big winner, as it was in the early ’90s.”..... That’s created a beauty contest among low-income nations looking to lure investment, including Vietnam with its high-technology parks and the Philippines with its young population and English-language skills. Indonesia’s trump cards are the region’s biggest economy and some of its lowest wages...... Workers in Central Java, the province of 30 million people where Mr Saefullah is fishing, earn as little as 50 cents an hour — less than US$100 (S$136) a month. In the industrial area around Jakarta, they get almost twice that. In Vietnam the minimum monthly wage is US$146, while it’s about US$200 in the Philippines and US$240 in Malaysia...... The race for a slice of China’s manufacturing is part of Indonesian President Joko “Jokowi” Widodo’s effort to reduce the country’s dependence on exports of minerals and palm oil........ http://www.todayonline.com/world/asia/indonesia-worlds-next-china

12 Mar 2015: Kalla says Indonesian business in forestry now looked on more as public enemies, profiteering form national assets, and people now fight discharge of industrial waste and changing expectations should be reflected in new laws - on forestry, the Jokowi administration seen as taking charge and doing things differently

Tackling haze: Look beyond words to action taken By Simon Tay and Cheong Poh Kwan  Published: 4:13 AM, March 11, 2015; The recurring haze from fires in Indonesia has returned, visibly and early, even if not as thickly as in past years. The politics around the issue may also heat up following a recent comment by Indonesia’s Vice-President Jusuf Kalla.... The respected political veteran last week chided Malaysia and Singapore for overreacting about the haze, largely a by-product of peat fires in Sumatra and Kalimantan. “For 11 months, they enjoyed nice air from Indonesia and they never thanked us,” he was quoted as saying in Indonesian media. “They have suffered because of the haze for one month and they get upset.” His remarks triggered a predictable torrent of criticism on social media and satire websites.... Mr Kalla’s words should be understood in context. The Vice-President was speaking at a ceremony to launch a national programme for judicial reform in natural resources and environmental management last Tuesday.... While he made that comment most likely in response to a question from the press, his key point was on the need to adapt the country’s laws to changing times and public perception, reported Indonesian media such as Kompas and Metro TV....
The Vice-President recalled how Indonesian businessmen were once looked at with pride for being good at exporting the country’s forestry products, but are now often seen as public enemies, profiteering from national assets. Similarly, while people used to see black smoke rising from factory chimneys as signs of progress, they now fight to stop the discharge of such health-threatening industrial waste. Such changing expectations should be reflected in new laws, he said.... The increased attention on this issue is also signalled by Mr Widodo and supported by his Cabinet. The President, a forestry graduate, personally made a high-profile visit to a haze-prone zone in Riau late last year. This followed a petition filed by an ordinary citizen against one of the more controversial concessions in the region. ... Notably, the President’s Cabinet has fused the ministries of Environment and Forestry to seek to balance and align their interests for a more sustainable industry. The new minister, Dr Siti Nurbaya, has won praise for her frequent consultations with non-governmental organisations as well as business groups.  She has also launched a standard geospatial map for use across all ministries to increase coordination in the administration of Indonesia’s forested areas. For Riau, a new forest and land fire mitigation and prevention action plan has also been launched under her watch. Her ministry is also closely monitoring lawsuits brought against forest-burning suspects over the past two years. When a state court recently dismissed charges against a firm in Riau’s Meranti Islands regency, the minister personally challenged the verdict. ... For many long-time observers of the forestry industry, this goes beyond business as usual. The new administration has shown that it is taking charge and is prepared to do things differently.....
http://www.todayonline.com/commentary/tackling-haze-look-beyond-words-action-taken?singlepage=true


28 Feb 2015: Jokowi agenda on rice sector development to see TNI-Babinsa's 50,000 force deployed as quasi-agricultural extension officers but it could mean a lot more

A very fascinating move. Sounds like it could immediately help strengthen Jokowi's position in Indonesia's high politics? Close observers have been noting his recent political shifts as seeking more independence of his party sponsors. He clearly a lack of a party political machinery of his own. Would Jokowi have a strong sway over the TNI-Babinsa's 50,000 force? I recall some consider Indonesia military-linked enterprises to be among the biggest business groups in the country. The new presence in agriculture of the TNI-Babinsa's 50,000 personnel as an agricultural extension force will be something to keep in view. It could be a new player who will directly / indirectly affect rural power relations in various geographic and crop sectors, with a key target on rice. It is notable that nearby Malaysia's rural political history clearly attests to the importance of rural development administration agencies, political and/or state-linked NGOs in electoral politics*. Thus, we need to look at the current state of Indonesia's rural politico-administrative organisations and NGOs and how TNI-Babinsa will be positioned and funded. How will a stronger military-SOE (state owned enterprise) and rural administration role eventually even touch on other key rural interest group including palm oil smallholders? This sector's farmers are likely relatively more well-off than the average rice farmers, but may still be keen on extension services to improve yields, and may need assists in certification to ensure international market access (which is being challenged via regressive - higher cost to small farmers - de facto international sustainability trade voluntary deals).
Note: *"The Political Tussle Over Felda Land Schemes" by Khor Yu Leng http://web.usm.my/km/32(Supp.2)2014/KM%2032%20Supp.%202_2014-Art.%204%20(89-121).pdf: "During the run-up to GE13, key PAS personnel and the UMNO Information Chief Datuk Ahmad Maslan have estimated (without disclosing their estimation methods) the FELDA voter support for UMNO at 70%–90%, while UMNO hypothesises that most PAS supporters emerged when PAS was a member of BN (New Straits Times, 2010). The activity and strength of UMNO linked non-governmental organisations (NGOs) in the social sphere among FELDA areas has been cited as a reason for PAS's inability to increase its voter base (New Straits Times, 2010): If PAS has Anak to help champion its cause, UMNO has several non-governmental organisations, such as Gabungan Wawasan Generasi FELDA (GWGF) and Majlis Belia FELDA Malaysia (MBFM), on its side. MBFM has been very active in all 54 parliamentary constituencies covering FELDA settlements since the last general election. It boasts of about 100,000 members and organises mostly social and sports programs..."

Jokowi’s Food Sovereignty Narrative: Military in the Rice Land? By Jonatan A. Lassa and Adhi Priamarizki RSIS Commentary No. 040/2015 dated 27 February 2015; THE INDONESIAN government is moving quickly to create a big impact in the agricultural and food sectors. Framed within a strong food sovereignty narrative, President JokoWidodo is now imposing two big agendas for the rice sector’s development. The first is to boost rice production to achieve 100 per cent self-sufficiency. The second is to graduate from 100 per cent rice self-sufficiency to be a rice exporting nation in the near future...... To achieve these targets, the Ministry of Agriculture (MoA) recently planned to re-utilise the military’s (TNI) civic mission (TNI Manunggal Masuk Desa) through the Village Supervisory Non-Commissioned Officers (Babinsa) as quasi-agricultural extension officers. Amran Sulaiman, the minister argued that “50,000 Babinsa across the country would be a big help to cover the deficit of 20,000 agricultural extension officers (AEOs)”. In the past, this was largely inspired by security concerns (such as controlling communism and farmers’ movement)..... Jokowi’s food sovereignty concept has its origin in the global farmers’ movement which allowed farmers to have greater autonomy and control over their own affairs based on their own decisions. In fact, food sovereignty is a rather ‘leftist paradigm’. The military’s recent interest in backing up Jokowi’s agenda could be justified by their interest in controlling the implication of food sovereignty on the farmers’ movement.... One can therefore question why and how the government’s involvement of the military in boosting agricultural production as a temporary solution to quicken the achievement of rice production targets amid the lack of AEOs. Some concerns remain as this policy may have long term implications. Firstly, one may question the urgency, effectiveness and value added of the military involvement in entering the rice field.... Secondly, the military presence may affect civil society’s role in agriculture because their involvement may discourage the genuine participation of farmers. Even though agriculture work can be classified under military operations other than war, the government should be able to explain the urgency of the military’s involvement in the food sector. This can be counter-productive for food production. A decline in public trust in Jokowi’s administration can dramatically accelerate.....

24 Feb 2015: Jokowi political and police-KPK tussles? Jokowi tax amnesty offer and commodity export LC requirement to shift money flows and expand Indonesia capital market; Singapore observation; firm stance on drug executions
 
Just over a week ago, we managed to catch up with one of our contacts who's a Southeast Asia business development specialist and very familiar with the Indonesia political-economy. Interesting feedback on the Jokowi attempted political shifts vis-à-vis his sponsor party; and also the talk on his relative political and advisor isolation given that he is an outsider, with no grassroots party of his own. There is also news on possible police-KPK tussles.
 
On the news front, more interesting policy commentary on shifting regional trade bookings and money flows. The April policy on LCs for key commodity exports hopes to clamp down on transfer pricing and bookings in tax-friendly trading centers. The new policy (reported early Feb) to help bring more money back to Indonesia is a tax amnesty. The question is how Indonesia businessmen and businesses respond to these policies (even if partially) and how it will inject more activity into Indonesia's banking sector and domestic investments. Policy moves to develop Indonesia's own capital markets, investment and value-add are to be expected. A shift of money from Singapore could be significant - back in the early 2000s when I was doing market sizing work in the private banking / wealth management sector there, it was frequently said that perhaps half the money was from Indonesia. The LC and tax amnesty issues are relevant for many in the Indonesia palm oil sector.
 
Over the last few weeks, at visits in Singapore, the gloom among staffers we met in the financial sector was palpable. Worries of business volumes and also the chatter about the many firings going on - from an international bank closing its Asia equity business, to a Malaysian investment bank with a big expenditure cutting plan and more. This seems to link up with the commentary below (see investor newsletter The New World) on slowing Singapore growth and the relative outperformance of the markets in its client-neighbours. Singapore has also been boosting its gaming and property sectors ever since the launch of its two casinos. We happened to speak to an analyst who covers the gaming sector - he noted that the Macau and Singapore gaming stories may be over with the China anti-corruption clampdowns. Over the Lunar New Year long weekend, a friend who has been based in Beijing for many years reported that while we may read of big political names being caught, the international audience may be missing the news on the many corporate players including retired managers being caught. China's anti-corruption drive is serious. Meanwhile in Singapore, we also hear from investors in the high-end sector there that prices and rentals may have fallen some 40% off the peak. It may seem a bit odd for this blog to dwell a bit on Singapore issues, but a lot of the regional commodity folk spend some time there.
 
News and commentary links:
 
Indonesia’s new tax law is bad news for Singapore From Lars Henriksson, in Bangkok, The New World newsletter; 23 February, 2015; Indonesian president Joko Widodo isn’t going to be very popular in Singapore right now....  He’s recently announced plans to introduce a tax amnesty for Indonesians in a bid to lure investors and companies back to the country. The nuts and bolts of it is that money kept in Singapore and other offshore countries could be repatriated to Indonesia without paying tax on it. It’s part of President Widodo’s plan to increase Indonesia’s GDP from about 5% to 7%. To make that a reality, a lot of capital is needed to build ports, railways and industrial estates and this tax amnesty plan is just one of several ways Widodo is planning to raise funds...  It’s great news for Indonesia but bad for Singapore....Its success came from its popularity as a trading hub. Natural resources were either shipped or traded through Singapore to buyers elsewhere. Singaporean entrepreneurs were able to profit from this and Singapore established itself as the middleman of Southeast Asia.... For decades, countries like Indonesia, Malaysia, Philippines and Thailand have lagged Singapore in trading and services, But I think the gap is narrowing, making it tougher for Singapore to continue its economic growth model.... Official statistics bear out this view....  Since 1976, Singapore has registered an average GDP growth of 6.9%. In the 4Q14, GDP dropped to a pedestrian 2.1% (2.9% for whole 2014).... The Ministry of Trade and Industry forecasts 2%-4% GDP growth in 2015. Even if they are proven right (too bullish in my view) it would mean that Singapore is still slowing down massively.... Meanwhile, Indonesia, Malaysia and the Philippines have generated positive returns since November 2010 but they have also outperformed Singapore....

Jokowi plans tax amnesty to lure cash back - Money repatriated to Indonesia will not be taxed, companies will get tax break; 7 Feb 5:50 AM http://www.businesstimes.com.sg/government-economy/jokowi-plans-tax-amnesty-to-lure-cash-back

Tax reform under Jokowi’s platform Adri AL Poesoro, Jakarta | Opinion | Mon, July 21 2014, 10:17 AM - See more at: http://www.thejakartapost.com/news/2014/07/21/tax-reform-under-jokowi-s-platform.html#sthash.Gb2ST3aL.dpuf
 
New police detectives may hamper KPK investigations Haeril Halim and Margareth S. Aritonang, The Jakarta Post, Jakarta | Headlines | Mon, February 23 2015, 5:58 AM; Doubts have mounted over the Corruption Eradication Commission’s (KPK) future commitment to pursuing high-profile cases following a plan to assign new police investigators to assist the antigraft body at the request of its new leadership.Antigraft campaigners have voiced pessimism over the future of high-profile graft probes under the leadership of acting chairman Taufiqurrahman Ruki and acting deputy chairman Indriyanto Seno Adji because of perceived potential conflicts of interest in a number of cases being investigated by the KPK....http://www.thejakartapost.com/news/2015/02/23/new-police-detectives-may-hamper-kpk-investigations.html#sthash.DMLlaRhk.dpuf
 
Other news

Indonesia says executions won't be delayed despite mercy pleas By Kanupriya Kapoor Tue Feb 24, 2015 2:55am EST; Feb 24 (Reuters) - Indonesia's president said on Tuesday the planned execution of 11 convicts on death row, most on drugs charges, would not be delayed, warning foreign countries not to intervene in his government's right to use capital punishment.... President Joko Widodo has denied clemency to the convicts despite repeated pleas from Australia, Brazil and France, who have citizens due to be executed by firing squad.... "The first thing I need to say firmly is that there shouldn't be any intervention towards the death penalty because it is our sovereign right to exercise our law," Widodo told reporters.... "We plan to appeal today's court decision. We have two weeks to file an appeal," said Todung Mulya Lubis, a lawyer for the two men... "If the law is respected, the execution should be postponed until the legal process is over."... Australia has been pursuing an eleventh-hour campaign to save the lives of Myuran Sukumaran, 33, and Andrew Chan, 31, two members of the so-called Bali Nine group of Australians, convicted in 2005 as the ringleaders of a plot to smuggle heroin out of Indonesia.... Shortly before Widodo spoke, a court in Jakarta threw out an appeal by the two Australians against Widodo's rejection of their request for presidential clemency.... http://www.reuters.com/article/2015/02/24/indonesia-executions-idUSL4N0VY16M20150224

14 February 2015: Jokowi wants to soon stop the sending of domestic migrant workers to other countries; he felt "ashamed when discussing the matter in [recent] bilateral talks with Malaysia... We must have pride and dignity"

Jokowi to halt the sending of domestic workers abroad The Jakarta Post, Jakarta | National | Sat, February 14 2015, 12:36 PM; President Joko "Jokowi" Widodo wants to soon stop the sending of domestic migrant workers to other countries, arguing that doing menial chores abroad undermines Indonesian pride and dignity. Jokowi told the Antara news agency on Friday in Surakarta, Central Java, that he felt "ashamed when discussing the matter in [recent] bilateral talks with Malaysia. I have instructed the manpower minister to make a clear road map and [set a timeline] to stop the program. We must have pride and dignity." As part of the plan, the government would repatriate 1,800 migrant workers. "We have repatriated 800 workers. More will follow suit," Jokowi said. There are some 2.3 million Indonesian migrant workers worldwide, 1.2 million of whom were undocumented, according to the president. - See more at: http://www.thejakartapost.com/news/2015/02/14/jokowi-halt-sending-domestic-workers-abroad.html#sthash.eg8VKWmR.dpuf

4 February 2015: Jokowi talks about dangerous inequality, increasing tax collection and tax payer base, promise to ease land acquisition for infrastructure, one-stop centers for business permits, state-owned plantation ordered to release land for port-industrial project, creation of single map to prevent overlapping land concessions

Bloomberg - ‘Dangerous’ Inequality Spurs Widodo’s Indonesia Shakeup by Neil Chatterjee, Yudith Hoand Chris Brummitt, 6:01 AM BNT,  February 3, 2015; A “dangerous” level of inequality threatens the world’s fourth most-populous nation, said Indonesian President Joko Widodo, who took power in October after beating a former army general. “Economic growth is very important for my administration, for my people but it’s more important to narrow the gap,” Widodo, known as Jokowi, said Monday in an interview at the presidential palace in Jakarta. “When we invite investors they must give benefit to my people. Also to my country.”... Jokowi, less than four months into a five-year term, said a key initiative will be to expand tax receipts, boosting them to 16 percent of the economy from less than 12 percent now. The leader, 53, underlined his confidence in boosting growth to 7 percent and described a policy program centered around holding government officials to account for impeding investment. ... Record buying by global funds sent the Bloomberg Indonesia Local Sovereign Index of government bonds up the most in more than a year last month, amid optimism Jokowi’s fiscal reforms will improve the nation’s credit quality. The benchmark Jakarta Composite Index of stocks has climbed more than 4 percent since Jokowi’s Oct. 20 inauguration, outperforming markets in Malaysia, Thailand and Vietnam.... Bureaucratic Bottlenecks: While total investment rose more than 14 percent last quarter from a year before and reached 463.1 trillion rupiah ($36.5 billion) in 2014, the nation with the world’s largest Muslim population will need more than $430 billion over five years to build transport links and other infrastructure, according to government estimates....
The economic dividends from Jokowi’s changes may take a while. The economy probably grew 5.1 percent in 2014, a five-year low, according to official estimates.... Freeing Land: The administration has promised to ease land acquisition to spur infrastructure projects, including buying land and establishing a land bank managed by different ministries. Jokowi also began a national one-stop service to coordinate the approval of business permits from more than a dozen agencies. Regional authorities who don’t set up a similar service in their cities or provinces this year will have funding cut, he said.... The president said he ordered a state-owned plantation company to release land for a port and industrial zone project that has been stalled for eight years. He’ll also create a single map to be used by all provinces to prevent overlapping land concessions, and is encouraging state-owned companies to issue bonds to increase financing for infrastructure..... http://www.bloomberg.com/news/articles/2015-02-02/-dangerous-inequality-spurs-widodo-drive-for-indonesia-shakeup

28 January 2015: Jokowi kicks of North Sumatra projects to be completed in 2 years - Kuala Tanjung Port, KT-Sei Mangkei Integrated Industrial Zone, Sei Mangkei power transformer, 600,000 tonne cooking oil plant

Jokowi kicks off 7 projects in N. Sumatra Apriadi Gunawan, The Jakarta Post, Kuala Tanjung, North Sumatra | Headlines | Wed, January 28 2015, 8:03 AM ; President Joko “Jokowi” Widodo officially announced the commencement of seven strategic projects located in a number of regions in North Sumatra, via a teleconference at Kuala Tanjung Port in Batubara regency on Tuesday.The projects comprise Kuala Tanjung Port, an aluminum smelter at state-run PT Inalum, the Kuala Tanjung-Sei Mangkei Integrated Industrial Zone, state power company PT PLN’s Sei Mangkei power transformer, the 600,000-ton capacity Sei Mangkei cooking oil plant, the Sei Mangkei Special Economic Zone (KEK) and the 17-kilometer Medan-Binjai toll road. Jokowi said all projects should be completed in two years. - See more at: http://www.thejakartapost.com/news/2015/01/28/jokowi-kicks-7-projects-n-sumatra.html#sthash.iyoqQLMM.dpuf

18 January 2015:   upgrade to the north-south Trans-Sumatra Highway, national “smart cards” to more than 15 million poor Indonesian families

For Indonesians, President’s Political Outsider Status Loses Its Luster By JOE COCHRANEJAN. 17, 2015... Perhaps his most contentious proposal was the elimination of fuel subsidies which, popular with voters and politicians, cost the state tens of billions of dollars a year, more than the government spends on health care and social services combined. His predecessor had tried to kill the program and failed.... He was able to eliminate the gasoline subsidy this month and, in a remarkable sleight of hand, lower fuel prices at the pump on the same day. The wild card that allowed that to happen was plummeting world oil prices.The change freed up money for his ambitious social programs. His government, as promised, mailed out national “smart cards” to more than 15 million poor Indonesian families in November, entitling them to free health insurance and education-related expenses for their children for up to 12 years of school..... He has also rolled out grand infrastructure plans for 2015, including 13 new dams and a long-overdue upgrade to the north-south Trans-Sumatra Highway.
The smart card program, especially, is already winning praise from needy families, said Wardah Hafidz, founder of the Urban Poor Consortium, a Jakarta-based nongovernmental organization.... “People are happy about it because it’s very different than before, when it was difficult to get health treatment, or people had to pay or were being turned away from public hospitals,” she said. “People are watching, people are commenting on the program, they are active. It’s hopeful.".... On Friday, The Jakarta Globe, a leading English-language daily, published a full-page photo on its front showing Mr. Joko bowing to Ms. Megawati with the headline, “End the Kowtowing.”......... http://www.nytimes.com/2015/01/18/world/asia/for-indonesians-president-joko-widodos-outsider-status-loses-its-luster.html?_r=0

14 January 2015: National police nominee gets KPK warning, but removal of fuel subsidies seen as "breaking the back of the country's notorious Oil Mafia"

100 Days of Indonesia’s Jokowi: Mixed Record by Dewi Kurniawati TUE,13 JANUARY 2015
Indonesian President Joko Widodo, who came into office on Oct. 20, ends his first hundred days in office next week with a record more mixed than his most enthusiastic adherents had expected when he was elected... Jokowi, as he prefers to be known, has earned domestic criticism through some suspect cabinet appointments, raising questions whether he is able to stand up to Megawati Sukarnoputri, the former president (2001-2004) and head of the Indonesian Democratic Party of Struggle, which sponsored his electoral campaign.... The nomination of Megawati’s former adjutant, Budi Gunawan, as head of the national police has turned into a major embarrassment, with the Corruption Eradication Commission (KPK) charging the official with bribery when he was head of the career development bureau at the National Police headquarters from 2003-2006.... But Jokowi has won praise from economists for doing away with fuel subsidies, which had the corollary effect of breaking the back of the country’s notorious Oil Mafia.  He has served notice internationally with a new strong maritime policy that has resulted in the spectacular sinking of Vietnamese fishing boats that intruded into Indonesian waters. The policy was given prominence in his inaugural address and again in mid-November that he intends to make his nation into a regional maritime power..... The move to eliminate the subsidy is said to have surprised the oil mafia, a shadowy cabal that profited from importing 500,000 barrels of oil per day from offshore sources, reportedly costing the government as much as US$5 billion annually. The oil mafia is said to include even members of Jokowi's PDI-P, as well as officials of Golkar and Yudhoyono’s Democratic Party. Political sources describe the system as a funding mechanism for powerful political parties and a route to vast wealth.
Reportedly the top figures in the oil trading business have been told that the party is over and there will be no more skimming from imports. Officials close to Jokowi say they have warned top figures of the oil business it is time to quit. Getting them out is regarded as the key to breaking the stranglehold on imports.... http://www.asiasentinel.com/politics/jokowis-first-100-days-mixed-record/


13 January 2015: Indonesia revamps to lower fuel cost, accelerated reforms to come; Jokowi has neutralized political opposition

Khor Reports comment: Plantation analysts remain concerned about the non-viability of palm biodiesel at the current prices. This affects the significant voluntary blending market as well as concerns about the usage in countries with soft mandates such as Indonesia; where it is also fighting to reform its energy sector to bring down spending on energy to free up money for investment in infrastructure. At the same time, Indonesia seems to be pushing on bureaucratic reforms and anti-corruption moves in the agro forestry sector as well as in aviation which recently suffered the Air Asia QZ8501 disaster. The Jokowi-JK presidential election manifesto also talks about the reorientation of economic gains in its biofuels sector to ensure gains for farmers. All in, several challenges issues for Indonesia biodiesel?

Note comment from FT: "...surpassing investor expectations in his first three months by abolishing $18bn of wasteful fuel subsidies and neutralising political opposition in the fractious parliament..."

Widodo’s Next Hurdle: What Indonesia Can Tackle Post Fuel Revamp By Chris Brummitt  Jan 13, 2015 1:12 AM GMT+0800; The opening salvo in Indonesian President Joko Widodo’s bid to revitalize Southeast Asia’s biggest economy was a revamp of the country’s energy sector. His next hurdle is delivering the gains from the shake-up.... In his first three months in office, Jokowi, as the leader is known, freed up 230 trillion rupiah ($18 billion) of budget funds for development by scrapping gasoline subsidies and capping government aid on diesel. He also moved to plug revenue leaks and improve efficiency in the energy industry, changing the management of the state oil company as well as setting up an oil and gas reform team..... http://www.bloomberg.com/news/2015-01-12/widodo-s-next-hurdle-what-indonesia-can-tackle-post-fuel-revamp.html

[these comments and links will be replicated in our biodiesel blog posting - read more here: /khorreports-palmoil/2014/07/biodiesel-news-update-5.html]

Indonesia’s Joko Widodo pledges to accelerate reforms 5:08AM by Ben Bland in Jakarta
Indonesian president Joko Widodo has vowed to accelerate economic reforms after surpassing investor expectations in his first three months by abolishing $18bn of wasteful fuel subsidies and neutralising political opposition in the fractious parliament.... When asked whether he could sustain the pace of change, Mr Widodo traced an exponential growth curve with his index finger, saying: “it will be like that”.... The president — who is universally known by his nickname Jokowi — said he would use the fuel subsidy savings to pump billions of dollars into infrastructure investment and push for “total reform” of the aviation sector following the shortcomings highlighted by the AirAsia crash.... But the 53-year-old has moved quietly to stifle his critics by appealing to key opposition politicians and the public. Several opposition parties, including the largest, Golkar, have become mired in internal disputes after senior leaders switched allegiance to Mr Widodo.... Mr Widodo will channel the Rp230tn ($18bn) of savings into infrastructure and social protection, reversing years of under-investment that have hobbled economic growth and left Indonesia with the highest rate of wealth inequality in Asia after China.... The depth of the problems afflicting the civil service has been underlined by the crash of AirAsia Flight QZ8501 en route from Surabaya to Singapore, which revealed worrying flaws in aviation regulation.... Facing his first major crisis as president, Mr Widodo said the government must use the crash as an opportunity “to totally reform our air transportation”, from the central government to the state-owned airport operator and air traffic control service.... http://www.ft.com/intl/cms/s/0/ae2fd588-9a48-11e4-9602-00144feabdc0.html#axzz3Og9TsjPb

12 January 2015: Palm oil company crackdown continues, tycoon arrested after 5 day hunt with police coordination; after Riau agroforestry audit will be Central Kalimantan audit

Police arrest Kalimantan palm-oil tycoon Budiono Tan The Jakarta Post, Jakarta | National | Mon, January 12 2015, 9:38 AM; The West Kalimantan Police have arrested palm-oil tycoon Budiono Tan, who allegedly misappropriated 1,535 land certificates of oil-palm farmers in Ketapang, West Kalimantan. The businessman, who runs a plantation through PT Benua Indah Grup (BIG), was caught on Friday night in West Jakarta after being sought for five years.... He is currently in the process of being transferred from Jakarta to Pontianak, West Kalimantan, for prosecution. Budiono was placed on the police’s most-wanted list in 2009 after committing fraud and embezzling money from hundreds of oil-palm farmers who worked for BIG. But his case was abandoned when he allegedly obtained strong support from police officers..... The latest hunt that involved the joint police team was started on Jan. 7. A team of seven police officers was deployed to check potential hiding places for Budiono.... Budiono was reported to the police in July 2009 for embezzling Rp 300 billion from the farmers. The money was supposed to be paid to the farmers for harvests during the year as well as the farmers’ savings. Budiono has been charged with embezzlement and fraud... The West Kalimantan Police have admitted that the case is hard to resolve due to intervention from “certain groups”.... Since 2012, the ministry has investigated and filed lawsuits against a number of plantation companies... Last year, Meulaboh District Court found PT Kallista Alam guilty of burning peatland in the Leuser conservation area in Nagan Raya regency, Aceh, and ordered the firm to pay a fine of $30.5 million.... The year also saw PT ADEI Plantation & Industry... After auditing agroforestry companies in Riau, the government has planned to run its next audit in Central Kalimantan.....  http://www.thejakartapost.com/news/2015/01/12/police-arrest-kalimantan-palm-oil-tycoon-budiono-tan.html#sthash.uqvK6PRV.dpuf

Indonesia’s post-Lima homework Warief Djajanto Basorie, Jakarta | Opinion | Sun, January 04 2015, 2:51 PM; ....An early directive from Siti Nurbaya Bakar, the new Environment and Forestry Minister, is to place a 6-month moratorium on new logging licenses. On a Nov. 26 visit to Riau, a province ravaged by peat fires early in 2014, Jokowi ordered a review of the permits of firms that converted peatland to oil palm and acacia plantations. In Meranti Island district, he ordered the damming of canals to restore moist peatland. Drained peatland converted to oil palm estates becomes brittle-dry peat and is vulnerable to fire. Any new low-carbon growth strategy would have to factor in commitment by major planters to practice zero-deforestation palm oil.....http://www.thejakartapost.com/news/2015/01/04/indonesia-s-post-lima-homework.html#sthash.yk4mk0YK.dpuf


11 January 2015 (evening): Indonesia boosts bilateral and maritime doctrine in high profile foreign policy; not supportive of AEC if it merely opens up Indonesia as market for ASEAN neighbor exports

Jokowi preparing Indonesia for role beyond Asean? by Emirza Adi Syailendra,  RSIS January 10, 2015 1:00 am; Under President Joko Widodo (Jokowi), foreign policy appears to be increasingly high profile as Jakarta seeks to tighten bilateral relations with Pacific and Indian Ocean major powers, with a heavy focus on the domestic-economic dimension. This is in opposition to the focus on multilateralism and norms promotion that were stressed during Yudhoyono's administration. How would Asean be positioned under the Jokowi government's foreign policy?... As Indonesia's global profile rises, the choices of partners are expanding but doubts have also resurfaced on whether Asean is still the bedrock of its foreign policy. With foreign policy given a high profile - in contrast to earlier predictions by some analysts that President Jokowi would be more inward-looking - it is tempting to argue that Indonesia's foreign policy priorities are shifting beyond Asean..... For example, Jokowi's new maritime doctrine of "global maritime fulcrum" has highlighted Indonesia's intention to 'Look West' in terms of deepening relations with major players in the Indian Ocean such as India and South Africa. Strengthening bilateral ties with Pacific powers is also becoming a major agenda instead of multilateralism. The emergence of a more nationalistic approach has further underscored these shifts..... According to Retno Marsudi, the new foreign minister, the current policy focus would be people-oriented. This statement was echoed by Jokowi during a discussion on the implementation of the Asean Economic Community (AEC). The president said Indonesia would not be supportive of the AEC's goal of a single market and production base by end 2015 if it puts Indonesia at a disadvantage by merely being a market for goods produced by neighbouring countries. Several other policies such as the sinking of the illegal fishing vessels in Indonesian waters have been interpreted as signals that Indonesia would not hesitate to defend its national interest at the expense of Asean
The point to stress here is that Indonesia's proactive and consensual leadership in Asean will endure during Jokowi's administration. However, pragmatism will be its defining feature. A recent effort by Indonesia to push Asean as the centre of the regional architecture was its proposal to expand the Asean Chiefs of Defence Forces Informal Meeting (ACDFIM) into an ACDFIM Plus that includes counterparts from key players like the US and China in the Asia-Pacific. The proposal underscores the interest of Indonesia to expand the scope of Asean into a more inclusive and accessible forum extending to major Pacific and Indian Ocean countries.... With the present security environment in the region marked by many flashpoints, exacerbated by external pressures arising from the US-China rivalry, Indonesia is concerned about Asean's ability to speak with one voice. Considering that the benefits Indonesia gains depends on how effective it is in rallying Asean, a break in Asean unity will have implications on Indonesia's image as the first among equals.....
http://www.nationmultimedia.com/opinion/Jokowi-preparing-Indonesia-for-role-beyond-Asean-30251598.html


11 January 2015: REDD+ agency future is in doubt? Forestry Ministry finds better business and public awareness of state environmental standards, while Greenpeace points to over 15,000 fire hot spots in 2014 versus under 6,644 in 2011 across Riau.

After only one year, REDD+ agency future is in doubt by Hans Nicholas Jong, The Jakarta Post, Jakarta | Headlines | Sat, January 10 2015, 9:48 AM. The future of the National Reducing Emissions from Deforestation and Forest Degradation Agency (BP REDD+) has become uncertain after only one year because of a plan from the Environment and Forestry Ministry to liquidate it.BP REDD+ head Heru Prasetyo said on Friday that he was concerned about the plan from Environment and Forestry Minister Siti Nurbaya Bakar to merge the agency with the ministry, which she is currently restructuring. - See more at: http://www.thejakartapost.com/news/2015/01/10/after-only-one-year-redd-agency-future-doubt.html#sthash.6hYSi4cE.dpuf

As Indonesia’s Forests Burned, No End in Sight to Infernos - Seventy percent of 1,908 companies under the Forest Ministry’s supervision are said to be committed to complying with state environmental standards; By Kennial Caroline Laia on 02:08 am Dec 30, 2014; JAKARTA — The slash-and-burn clearing of forests to make way for plantations topped Indonesia’s list of environmental problems this year, with several major forest and land fires in Sumatra once again undermining the country’s fight against deforestation while generating choking clouds of smoke that left local residents ill and prompted the ire of neighbouring countries.....The Indonesian office of international environmental group Greenpeace said the number of fire incidents over the past few years has continued to increase in Riau, a Sumatran province at the centre of major forest and land fire incidents in Indonesia in recent years......Greenpeace Indonesia forest campaigner Muhammad Teguh Surya said a total of 6,644 hot spots were detected across Riau in 2011 and the figure has continued to rise, with 8,107 hot spots detected in 2012 and 15,112 last year...... “As of October this year, we recorded more than 21,000 fire hot spots,” he told Indonesian news portal Tempo.co earlier this month......Agency spokesman Sutopo Purwo Nugroho has highlighted the need for better law enforcement. In the wake of the peak of the fire and haze incidents in the first quarter of the year, the police arrested dozens of people for allegedly starting the blazes, but law enforcement in the sector has generally been considered toothless, with security officers criticised for only nabbing small-scale farmers and barely going after the large plantation companies in whose concessions many of the hot spots are located...........Agency spokesman Sutopo Purwo Nugroho has highlighted the need for better law enforcement. In the wake of the peak of the fire and haze incidents in the first quarter of the year, the police arrested dozens of people for allegedly starting the blazes, but law enforcement in the sector has generally been considered toothless, with security officers criticised for only nabbing small-scale farmers and barely going after the large plantation companies in whose concessions many of the hot spots are located...... However, Mr Rasio Ridho Sani, a deputy to the Environment and Forestry Minister, argued that Indonesia had made significant improvements in the environmental sector, citing growing environmental awareness among logging, plantation and mining firms operating in forests...... He said 70 per cent of the 1,908 companies under the ministry’s supervision were committed to complying with the government’s environmental standards. The figure is an increase from 49 per cent in 2004. “This means the environmental awareness of the business community has increased. And we hope that the number will stay that high and increase even further,” Mr Rasio said......He added that the public’s awareness about environmental issues was also improving, citing how more people were starting to cycle to work and were committed to recycling their waste as part of a greener lifestyle...... http://thejakartaglobe.beritasatu.com/news/indonesias-forests-burned-end-sight-infernos/

12 December 2014: Peatland for community sago instead of oil palm plantations?

Swift action on forest fires by President Jokowi by Wimar Witoelar, Jakarta | Opinion | Thu, December 11 2014, 10:04 AM; On Nov. 27, in the Riau Islands province, President Joko “Jokowi” Widodo studied the dried peatland and man-made canals that locals were building to prevent the further drainage of precious water in the peat. He held impromptu talks with victims of peat-based forest fires. The President made some announcements off the cuff. Obviously he had thought about the issues for some time... President Jokowi said plantation permits had to be reviewed if they were indeed destroying the ecosystem; they would have to be terminated. “We must not allow our tropical rainforests to disappear because of monoculture plantations like oil palm,” he said.... In his remarks in Sungai Tohor, the President described the community-built canal dams as very good and that they must be made permanent. He further said it was best for peatland to be given to the community to be managed for sago.... http://www.thejakartapost.com/news/2014/12/11/swift-action-forest-fires-president-jokowi.html

10 December 2014: Jokowi orders review of licenses of all plantations that have plantations on peatland

Indonesia’s New President Promises to Put Peat Before Palm Oil By Jeff Conant, From Inter Press Service News Service; December 5, 2014; Jakarta: "Last week, Indonesia’s new president, Joko Widodo, ordered the country’s Ministry of Environment and Forestry to review the licenses of all companies that have converted peatlands to oil palm plantations.... If the ministry follows through, this will be one of the most important actions the Indonesian government can take to begin truly reining in the destruction reaped by the palm oil industry there – and to address the severe climate impacts of peatland destruction.... The Indonesian Forum on the Environment, known as WALHI/Friends of the Earth Indonesia, has been pushing for this initiative, and the announcement was made in the village of River Tohor, in Riau Province, where WALHI has long worked with the community.... Walhi had invited Jokowi, as the president is casually known, to come to Riau because the province is ground zero for Indonesia’s massive haze crisis that comes from the near-constant burning of carbon-rich peatlands in order to convert these fragile ecosystems to plantations.
“We invited him to River Tohor to demonstrate the community’s success in preserving the peat forest ecosystem,” said Zenzi Suhadi, forest campaigner for Walhi. “We hoped this visit would show the president that community management can protect forests, and that granting concessions to companies is the wrong approach,” Suhadi said. The strategy appears to have succeeded, as Walhi hailed President Jokowi’s Riau visit as proof of his commitment to solving ecological problems..... “The best thing to do is to give the land to people,” the president told The Jakarta Globe. “What’s made by people is usually environmentally friendly. They won’t do any harm to nature. However, if we give the land to corporations, they will only switch it to monoculture plantations.”...... Jokowi’s move came shortly after his government announced a four- to six-month moratorium on all new logging concessions. That prohibition goes beyond the 2011 nationwide moratorium on new concessions across more than 14 million hectares of forests and peatlands... The move also comes on the heels of Jokowi’s announcement that the Ministry of Forests and the Ministry of Environment would be combined into one ministry, headed by Siti Nurbaya – a move that not all see as positive but that does signal a radical effort to restructure the way the government manages lands and resources.... Jokowi has also pledged to clean up Indonesia’s notoriously corrupt forestry sector as a step toward reducing deforestation....  http://www.ipsnews.net/2014/12/indonesias-new-president-puts-rainforests-before-palm-oil-plantations/

19 November 2014: Jokowi talk to President of European Council on export barriers to palm oil

Govt asks EU to ease RI palm oil export by Hasyim Widhiarto, The Jakarta Post, Jakarta | Business | Wed, November 19 2014, 5:44 PM; "Indonesia, the world's largest producer of palm oil, has asked the European Union (EU) to ease its regulations on palm oil imports, mainly to help Indonesian farmers enjoy benefits from the exportation of palm oil.... In a meeting with the President of the European Council, Herman Van Rompuy, on Wednesday at the Presidential Palace, President Joko "Jokowi" Widodo personally asked the EU's principal representative to ease the export barriers for its palm oil products in the bloc's 28 member countries.... Van Rompuy said that he would take Indonesia's request as "the council's concern", according to Foreign Minister Retno LP Marsudi, who accompanied Jokowi during the meeting... The EU is the Indonesia's third largest trading partner and the second largest foreign investor after Japan...." http://www.thejakartapost.com/news/2014/11/19/govt-asks-eu-ease-ri-palm-oil-export.html


17 November 2014: EU palm oil market access, strategic sectors of EU-Indonesia trade, assertive foreign policy approach?

Jokowi explores cooperation in fashion industry with Italy BY Rendi A. Witular, The Jakarta Post, Brisbane, Australia | World | Sat, November 15 2014, 12:13 PM; "President Joko “Jokowi” Widodo told his counterpart Italian Prime Minister Matteo Renzi in a bilateral meeting on Saturday ....“I also demanded that Italy and the European Union provide easier access for our palm oil into their market,” he said...." http://www.thejakartapost.com/news/2014/11/15/jokowi-explores-cooperation-fashion-industry-with-italy.html

EU offers RI chance to export more to Europe BY The Jakarta Post, Jakarta | Business | Fri, November 14 2014, 8:33 PM; "EU Ambassador to Indonesia, Brunei Darussalam and ASEAN, Olof Skoog, said Friday that President Joko "Jokowi" Widodo aimed to achieve a growth rate of 7 percent, which would need a high level of imported goods to increase GDP while still experiencing a negative trade balance... He said that the EU, with its 28 member countries, was a big market for Indonesia’s exports, even bigger than countries like China and India.... “We are the biggest export market for Indonesia,” Skoog said, adding that Europe had been the biggest export market for Indonesia’s palm oil in recent years... Meanwhile, Skoog said that the Nov. 19 dialogue, which is supported by five European chambers of commerce – BritCham, EKONID, EuroCham, IFCCI and INA –, would be focused on five strategic sectors of automotive; agriculture, food and beverages; infrastructure, maritime and logistics; pharmaceuticals and cosmetics; and energy and renewable energy...."
http://www.thejakartapost.com/news/2014/11/14/eu-offers-ri-chance-export-more-europe.html

Foreign friendships must benefit RI: Jokowi by Rendi A. Witular, The Jakarta Post, Brisbane | Headlines | Mon, November 17 2014, 9:53 AM; "After a string of meetings with leaders of the world’s powerhouse nations during his first nine-day official trip overseas, President Joko “Jokowi” Widodo may have redefined the meaning of a “free and active” foreign policy... In a press conference on board the presidential aircraft en route to Jakarta, Jokowi said that diplomacy during his administration would no longer be confined to image-building... “For me ‘free and active’ is making friends with countries that can provide us with benefits. What’s the point of making friends if we are always on the losing end?” said Jokowi, when asked how his vision of international affairs differed from his predecessor’s. ... “What’s the benefit of making friends if it is aimed merely at image-building and if it risks our national interests? It does not mean that we’re creating enemies. It is just that we won’t be close [with countries providing no benefit to Indonesia].”... Although he speaks in a soft tone, Jokowi has been direct in recent conversations with world leaders during the Asia Pacific Economic Cooperation (APEC) summit in Beijing, the ASEAN and East Asia summits in Naypyitaw, Myanmar, and the G20 Summit in Brisbane, Australia.... Jokowi held bilateral talks with, among others, Chinese President Xi Jinping, US President Barack Obama, Japanese Prime Minister Shinzo Abe, Russian President Vladimir Putin, German Chancellor Angela Merkel, Australian Prime Minister Tony Abbott and French President Francois Hollande.... Foreign Minister Retno LP Marsudi told The Jakarta Post that the administration would be more assertive in matters concerning the President’s maritime-axis doctrine.... “It  seems [in the past]  that  Indonesia could not make up its mind. Now, from the very beginning [of Jokowi’s administration] we can deliver  a  message  on  what  Indonesia  is  demanding,” she said.... Jokowi also ensured that agreements forged in the recent bilateral meetings would be followed up. “I will instruct on Monday [in a Cabinet meeting] that all related ministers follow up on the commitments made during my meetings with world leaders. I want something concrete,” he said....."
http://www.thejakartapost.com/news/2014/11/17/foreign-friendships-must-benefit-ri-jokowi.html

12 November 2014: Jokowi demands Obama heed concern on palm oil trade restrictions impacting farmers and small companies, caution on FTAs

Jokowi ushers in ‘blak-blakan’ diplomacy by Rendi A. Witular, The Jakarta Post, Jakarta | Headlines | Wed, November 12 2014, 9:28 AM; "As ethnic Javanese, both President Joko “Jokowi” Widodo and his predecessor Susilo Bambang Yudhoyono adhere to the profound norms of the Javanese culture that emphasize the need to compromise and to avoid getting too directly to the point.
While Yudhoyono often refused to be straightforward during bilateral meetings, Jokowi is doing the opposite.... In a press conference late on Monday, Jokowi described his brand of diplomacy as blak-blakan (Javanese slang meaning “being direct”).... During a meeting with Xi on Sunday, for example, Jokowi directly requested that China bolster economic ties through concrete actions including the involvement of Chinese state companies in the development of Indonesia’s infrastructure. Jokowi has also demanded a bigger role for Indonesia in the China-led Asian Infrastructure Investment Bank (AIIB), proposing that the bank open its headquarters in Jakarta.... When he met Obama on Monday, Jokowi demanded that the US lift restrictions on Indonesian palm oil entering the US market. Jokowi said he had expressed his concerns to several other leaders about the difficulty experienced by certain Indonesian agricultural and fisheries products in entering overseas markets. “We don’t want to enter into any discussions on free trade deals. We don’t want to open up unless there is something we can gain,” he said. “Many of our commodities, such as rattan, palm oil and fish, have fallen victim to trade restrictions. These are not commodities produced by big corporations. These are the products of our farmers and small companies,” said Jokowi...." http://www.thejakartapost.com/news/2014/11/12/jokowi-ushers-blak-blakan-diplomacy.html

Jokowi on world stage, first stop Beijing by Rendi A. Witular and Hasyim Widhiarto, The Jakarta Post, Beijing and Jakarta | Headlines | Sun, November 09 2014, 11:27 AM; "In his first official overseas excursion since taking office on Oct. 20, President Joko “Jokowi” Widodo is embarking on a nine-day bilateral and multilateral diplomatic trip aimed at courting investors for the country and showcasing his maritime vision... Beijing was his first stop as he arrived on Saturday evening to attend the annual APEC summit, a prestigious powwow of 21 leaders of Asia-Pacific economies, on Nov. 10 and 11, and also to shore up support from Chinese government and business leaders.... As China is Indonesia’s biggest trading partner, Jokowi looks to be devoting much of his attention during the trip to seeking support from the world’s second-biggest economy...."
http://www.thejakartapost.com/news/2014/11/09/jokowi-world-stage-first-stop-beijing.html

Jokowi asks more of China by Rendi A. Witular, The Jakarta Post, Beijing | Headlines | Mon, November 10 2014, 9:02 AM; "Appearing upbeat and donning a stylish suit, President Joko “Jokowi” Widodo met China President Xi Jinping on Sunday on the first leg of his overseas trip since taking office on Oct. 20. Jokowi suggested the leader of the world’s second-biggest economy bolster ties through “concrete” actions.... In his introduction note to Xi at his office in Beijing, Jokowi said Indonesia’s relationship with China, which stretched hundreds of years, was underlying capital to expand future strategic partnerships.... In his welcoming note, Xi congratulated Jokowi for his ascension to the presidency and hoped that under his leadership Indonesia would not only see more rapid development but also play more of a role in dealing with regional and international issues.
“China has always regarded Indonesia as our old best friend and we have always prioritized keeping our relations intact by seeing Indonesia as a strategic partner that we can trust,” said Xi.... In a press conference later in the evening, Jokowi explained that he had requested of Xi that China be more involved in Indonesia’s infrastructure development, particularly in the maritime sector. “What I mean by concrete outcomes is that there should be more progress in the sectors of investment and trade. I’ve requested to President Xi that Chinese state companies be involved more in the construction of our seaports, railways and toll roads,” he said. ... Jokowi has also demanded bigger role in the China-led Asian Infrastructure Investment Bank (AIIB), by proposing that the bank open its headquarters in Jakarta for funds to flow into the country. “China will of course have a 50 percent stake in the bank. We will also have a stake, but smaller. We will inject around Rp 5 trillion [US$ 416.67 million) in participating funds to be paid in installments over five years,” he said.... "
http://www.thejakartapost.com/news/2014/11/10/jokowi-asks-more-china.html

HCS+ Science Study proposes strong carbon threshold? Update 2b - On the peat / organic soil question

 
 
 
source: Screenshots from HCS Science Study Draft Synthesis Report
 


Source: Images from HCS Science Study Draft Synthesis Report
with annotations by Khor Reports palm oil blog on key policy features

Key points include:
  • The Sustainable Palm Oil Manifesto’s**  HCS+ Science Study "Draft Synthesis Report" proposes oil palm development threshold ceiling for development and a traffic light warning system:  
  •           Green / “may develop” zone is AGB 35-40tC/ha or better (being oil palm equivalent and requiring socio-econ benefits)
  •           Amber / “may develop if” zone (requiring more local socio-econ benefits) is AGB 35-40 to 50tC/ha. Offsets involved? 
  •           Red / no development zone (not allowed even if there are socio-econ benefits) is AGB 50 tC/ha and above
  • It seeks to protect “advanced growth secondary forests” which typically has AGB of 100t/ha (50tC/ha) and more after 20 years. Thus, no matter what the local socio-economic benefit, the target is that 20 year old tropical trees should be protected.
  • For AGB measurement, the LIDAR method is proposed. The cost estimate is $2.50 to $4 per ha; for 10,000 ha that is $25,000 to $40,000.

  • It has a separate and additional soil carbon protection criteria. The threshold is set at 75 tC/ha equivalent . This means max 12.5 cm depth for tropical peat lands and max 12.5 cm to 37.5 cm for tropical organic soils. Experts say there are no major zones of non-peat organic soils in Malaysia, although there are some coastal (non peat) wetlands. Some sustainability specialists note that this would restrict oil palm planting on organic matter rich mineral soils – possibly, newly deforested zones may have such a layer of organic matter? Also, this may strongly affect the ability to replant oil palm in peat zones i.e. no replanting? (Editor's note, 9 July: some consultants are surprised that the palm oil industry expected to replant on peat land
 
** Key palm oil companies: Asian Agri, Cargill, IOI Corp, KL Kepong, Musim Mas, Sime Darby, Wilmar;  A steering committee (SC), independently co-chaired by Founder Director of Forum for the Future, Sir Jonathon Porritt, and Chief Research Scientist from Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO), Dr John Raison, has been established to oversee the HCS Study. Members of the Steering Committee represent key players in the palm oil value chain which includes the signatories of the Manifesto as well as Wilmar International. They are joined by independent economic advisor for the agribusiness sector, Dr James Fry, Chairman of LMC International, who lends his expertise in international commodities to the process. Observers include representatives from the RSPO, Sustainable Trade Initiative (IDH), Neste Oil and several other organizations (in the process of joining) who will actively contribute to ensure a transparent, objective and holistic approach... http://www.carbonstockstudy.com/carbonstockstudy/media/Documents/HCS-Study-Description-Paper.pdf
 
The threshold – ceilings for agriculture development:
      
     Above Ground Biomass or AGB + Below Ground Biomass or BGB (i.e. roots) + dead wood
      
     With this total divided by two to get to carbon per hectare C/ha measure.
      
     Thus: (100 + 100* 0.25 + 100* 0.25) / 2 = c.75 tC/ha ceiling for any development.
 
It is handy to refer to already familiar measures used by the RSPO GHG WG and also the TFT / Greenpeace HCS Approach. They do not include measure of BGB roots and litter or dead wood; and both have mentioned 35tC/ha as palm oil equivalent#.
 
# RSPO has a New Planting Procedure GHG emissions reduction policy where differential values prompt plantation developers to reduce their use of HCS zones. The traceability regimes under TFT/Greenpeace have stepped down from the 35tC/ha starting point; and plantation sustainability specialists reckon that the effective ceiling is a higher figure c. 70-90 tC/ha. Some background here: “Manifesto 5 stepping up efforts (update 5): The tussle over HCS and 35tC/ha” 7 October 2014: So what was the 35tC/ha ceiling? In our talks to specialists, that is the life-time average carbon of the oil palm tree (it is referred to in a key RSPO working group document too); thus NGOs said that to be carbon neutral in some sense, oil palms should not be developed in forested areas with more than its own above ground carbon value. Of course, even the oil palm carbon measure is contested - do you include the fronds, fresh fruit bunches and ground cover etc? You may also ask why a crop is compared to trees - some say that may have been inadvertently abetted by some in the industry claiming that the oil palm is as good as a (forest) trees in the first place. Thus, solidifying the tree basis of comparison (which does not apply to other oilseed crops?)…. So what will be the basis of "no deforestation"? A higher ceiling? Earlier, some spoke of 100tC/ha as a possibility. Some stepped up pledges have added parameters, such as Wilmar's (via a TFT traceability program) which has a multi-year no human use caveat. Individual B2B traceability programs may have varying parameters compared to the multi-stakeholder efforts such as the RSPO-based… Read more, /khorreports-palmoil/2014/09/high-carbon-stock-studies-underway.html And “Over 1000tc/ha carbon stock in one oil palm cycle,” 20 Nov 2013, /khorreports-palmoil/2013/11/over-1000tcha-carbon-stock-in-one-oil.html - if you divide 1000 / 25 years (of the economic life of the oil palm tree) to reach the average of 40tC/ha for oil palm equivalent. Notably, some point to a measure higher than 1000 for the oil palm cycle.

On AGB terms, the HCS+ Science Study proposes a (hard?) ceiling for development at 50 tC/ha for any corporate and corporate-led smallholder development as "conversion not allowed even if local / sub-national benefits arise” in this red / no-go zone. This appears relatively tough. The TFT/Greenpeace HCS Approach is reckoned by some experts to be operationalised at c. 70tC/ha plus*.
*but some differences of opinion highlight the important ambiguities existing 

source: Screenshots from HCS Science Study Draft Synthesis Report
 
  
The HCS+ Science Study continues firmly in the tradition that palm oil sustainability is rooted in forestry conservation principles. This was established at the RSPO and also used at TFT/Greenpeace. Specialists point to their origins in the Forest Stewardship Council’s definition and approaches.
 
So what trees does the HCS+ Science Study seek to protect? “Advanced growth secondary forests”:  these are forests have an AGB of 100t/ha and more. Divide by two (to get to C), you reach the AGB 50tC/ha apparent hard ceiling of no development (no matter what the local socio-economic benefit) to protect 20 year old tropical trees (accumulating 5 tonnes C per year).
 
What is soil 75 tC/ha equivalent to in range of depth terms? Est. 12.5 cm depth for tropical peat. “a typical tropical peatland has per ha a carbon stock of 6 tons per cm of peat depth. A lower soil carbon threshold of 40 t C ha-1 (the ‘palm oil equivalent’) then translates in a peat layer of 6.7 cm thick”; 122. This means that tropical organic soils always surpass an uppermost 75 t C threshold value when they have an organic layer of more than 37.5 cm thickness, whatever its organic matter content may be, and mostly this is achieved with a thickness of 12.5 cm.
source: Screenshots from HCS Science Study Draft Synthesis Report
 


The comments below focus on the threshold implications for socio-economic development. It also offers preliminary feedback from several senior industry experts on technical issues and macro trends. Clearly, myriad questions as well as overlapping concerns about an apparent policy halt for oil palm development.

As of 10 July 2015 (update 2), feedback below compiled from 11 people. Please send us your feedback, but more importantly do contribute to the Public Consultation on this Report (Feedback Form: http://www.carbonstockstudy.com/Public-Consultation/Feedback-Form).

 
Socio-economic issues:
 
source: Screenshots from HCS Science Study Draft Synthesis Report
  1. While the wording suggests no corporate-led smallholder development would be allowed in red zones, it is not clear if state-led (non-private sector corporations) smallholder development and independent smallholder development would be acceptable.
  2. It is so far silent on what a 50tC/ha ceiling looks like in say Papua or West Africa. What is the population in red / no development zones and what are their current incomes and aspirations? What happens to the people residing therein? Can they plant other crops or undertake other economic activities? Does this point to out-migration?
  3. The amber zone (corporate development allowed conditional upon including “major local / sub-national benefits” to local peoples) is set at a range of AGB 35-40 to 50 tC/ha, and corporate plantation development is green lighted (“provided that local / sub-national benefits arise”) if it is below the oil palm equivalent of AGB 35-40 tC/ha. What implementers will be asking: what are acceptable “major local benefits” (amber HCS zone) and what are “local benefits” (green HCS zone).
  4. Industry is surprised that the HCS+ Science Study proposes the same thresholds across all global geographies. Perhaps this is because climate science policy has been its focus so far, while socio-economic implications have yet to be undergo modelling and sensitivity analysis. There had been an expectation that different thresholds would apply to create room for West Africa development, so the red / no-go zone of AGB 50tC/ha for Africa smallholder development seems a surprise.
  5. Test modelling of these proposals would be useful, to find out what the proposed AGB 50tC/ha threshold mean in key future oil palm zones – does it set aside 50%, 60%, 70% or 80% of a region for forest conservation?
  6. While plantation groups and others in the supply-chain are keen to set an “orderly (global) oil palm development policy,” there will be local impacts and local questions. What happens to the people residing in the “red / no development” zones? Can they grow other (tree) crops? What alternative development activity and income opportunity for them? Can they migrate to (and can they be absorbed in) zones set by HCS+ thresholds as green and amber?
  7. Update 1, 9 July: Is there some caveat to cross into the red zone? Can this still be discussed or is this "draft" near final?
  
On technical issues:
 
  1. Do the assumed rates, including the 5 tonnes C accumulation per year need to be rechecked? Readers point out that it seems there was no time to do research, but that relies on existing scientific literature.
  2. Why is carbon from trees assumed immediately as emissions when in fact a significant portion of the timber may remain is in use (carbon fixing)? What about carbon in the oil palm FFB (whether on production basis or FFB stock in tree), and is the return of EFB to the field measured?
  3. Why LiDAR? There are more cost effective methods.
  4. If organic-rich (fertile) mineral soils are restricted in use, what is the implication on carbon emission if more fertilizers are needed to plant on less fertile mineral soils?
  5. "As a first reaction, I am very perturbed by Item 68 wherein a single paper by Cowenburg and Hoojer (2013) has been quoted as the basis for the proposition.  This paper is a follow-up to an earlier paper by Hoojer et al (2012), which is so full of technical weaknesses and unjustified assumptions ….  (it is a) questionable data source...." [Editor's note. HCS Science Study: Draft Synthesis Report, 68. Outcome 2: No development involving new or deeper drainage of peat and other highly organic soils. Emissions from drained peat upon conversion are very high (about 17 t C/ha/yr, or 425t C/ha over a 25 year period; Cowenburg and Hoojer, 2013). High emitting soils thus need to be identified and excluded from plantation development. We propose a soil carbon threshold that is expressed in terms of net emissions, and that is equivalent to the biomass threshold (75 t C/ha). The soil threshold thus allows a net loss of soil carbon of a maximum of 75 t/ha over the crop rotation]
  6. "The logic of certain assumptions and scientific justification of some of the quantitative figures need to be questioned/rebutted....”
  7. Update 1, 9 July: This HCS study figure differs from RSPO's 36 t C/ha. The hard threshold of 50 t C/ha appears too low and very little degraded forest will be available for oil palm especially if RSPO takes it up and backdates it to 2005. Does this study, take the starting point as the day the concession is taken over (or what cut-off date?). Why do the thresholds vary? Basically, consultants for oil palm biomass make different assumptions. Some assume oil palm carbon growth is a straight line and take a simple arithmetic mean. But, some argue otherwise i.e. oil palm grows very fast during the early years when there is no self-shading and competition before slowing down. Thus, the integration method (add up biomass for each year and divide by the number of years) works out a different mean value. The difference can be as high as 10 t C/ha. That is why RSPO got a figure of 36 t C/ha. [Editor's note: Cut-off dates matter as AGB carbon accumulates each year. However, we have heard that where there is divergence between AGB carbon between say the RSPO 2005 cut off and the current AGB carbon level, the higher of the two has been used (i.e. auditors are conservative). New programs such as TFT/Greenpeace traceability programs create new cut-off dates e.g. Wilmar's is in December 2013 versus RSPO's 2005 benchmark).
  8. Update 1, 9 July: Report looks rushed - some obvious errors. Can the Report clearly explain any data biases and ambiguities it may have. We need a better, more thorough and nuanced consideration of these. This reads as rather simplified. Has each data point been carefully considered? Is there a range of values? Are there enough appropriate data sources?
  9. Update 2, 10 July:  On the peat / organic soil question [Editor's note: Given reader interest in the peat  question, we reproduce below key excerpts about the peat and organic soil carbon problem and definitions from the Draft Synthesis Report. It seems that the main focus of the Report may be on peat having >45% OM. This can be contrasted with some plantation company policies which define peat as soil with >65% OM. Notably, plantations have not referred to organic-rich soils as being potentially unplantable; this appears to be defined as 20%-45% OM by the Report? The conclusion: "This means that all tropical peatlands, whatever their definition with respect to minimum peat thickness, surpass the uppermost HCS+ threshold value. Therefore, the HCS+ approach merely has to identify the presence of peatlands, not their total soil carbon stock." From item 120: "For the tropics, Wüst et al. (2003) distinguish between ‘peat’ (with > 45 % organic matter OM), ‘muck’ (35 % < x < 45 % OM), ‘organic-rich soil sediment’ (20 % < x < 35%) and ‘mineral soil or sediment’ (<20 % OM)...." - see below for more]. 
  10. Update 2b, 22 July: From a reader on RSPO definition and limitations of peat, "Tropical peat soils are defined in the RSPO Peat BMP Manual as organic soils with 65% or more organic matter and a depth of 50cm or more."

Other macro questions:
 
  1. Agriculture is said to account for 8% of anthropogenic (man-made) carbon emissions. How much comes from palm oil?
  2. By significantly slowing (possibly near halting?) palm oil with a 50tC/ha ceiling, what is aggregated impact after other oils expand? What about a carbon per tonne oil measure?
  3. "This appears biased towards killing off expansion of oil palm probably in favour of soyabean and rapeseed oil.  I do not agree with many things in the write-up.  Unfortunately, all the big players agreed to this study.  If we accept this, we might as well stop oil palm development...." Note: Perhaps it would be useful to look at tC per tonne oil (and other measures) for the next 10 million tonnes under different oil supply scenarios?
  4. "There is an ominous possibility that this may be developed later to affect replanting on mineral soils under the strategy of “HCS compensation” i.e. growers, notably the big 'boys', will be required  to set aside a significant area for high-intensity reforestation for continued (RSPO?) certification and market access.  In other words, the industry will not only cease to expand but also start to shrink... For peat, no new areas can possibly satisfy the stringent criteria and replanting of existing areas at the end of the current cycle can definitely be ruled out...."
  5. "Item 256 is particularly appalling.  If this is the ultimate conclusion, then the sociological considerations and propositions in the Report merely constitute a 'red herring' - a big one at that!  What I perceive is a very subtle strategy to push through a forestry-cum-peat conservation agenda right under the "noses" of the industry!  Overall, the HCS concept and strategy may well spell the death-knell for any legitimate expansion for the industry (anywhere)."  [Editor's note. HCS Science Study: Draft Synthesis Report, 256. All peat and other organic soils have to be excluded from conversion. All land with mineral soils, and an AGB < 100t/ha are eligible for conversion, unless drainage associated with their conversion would adversely affect the protection of adjacent peat and organic soils. [Editor's note: AGB < 100 t/ha is equivalent to AGB < 50 tC/ha]]
  6. "To me, the issue is where the threshold is set."
  7. Update 1, 9 July: The palm oil industry approach to NGO concerns is still evolving after all this time. It looks like another round of NGO criticisms of the big players.
 
This document is in public consultation, and you can read and submit your feedback by 31 July 2015 via these links:

..............
Update 2, 10 July 2015 - on the peat / organic soil question

Editor's note: Given reader interest on the peat / organic soil question, we reproduce below key excerpts about the peat and organic soil carbon problem and definitions from the Draft Synthesis Report.  It seems that the main focus of the Report may be on peat having >45% OM. This can be contrasted with some plantation company policies which define peat as soil with >65% OM. Notably, plantations have not referred to organic-rich soils as being potentially unplantable; this appears to be defined as 20%-45% OM by the Report? The conclusion: "This means that all tropical peatlands, whatever their definition with respect to minimum peat thickness, surpass the uppermost HCS+ threshold value. Therefore, the HCS+ approach merely has to identify the presence of peatlands, not their total soil carbon stock."
From item 120: For the tropics, Wüst et al. (2003) distinguish between ‘peat’ (with > 45 % organic matter OM), ‘muck’ (35 % < x < 45 % OM), ‘organic-rich soil sediment’ (20 % < x < 35%) and ‘mineral soil or sediment’ (<20 % OM).

Excerpts from the Report

Brief primer on carbon storage and carbon dynamics in vegetation and soils; 8. The vulnerability of soil C stocks to loss following disturbance varies to a great extent. Loss from drained peat is very high whether caused by microbial oxidation or fire. Losses from microbial oxidation after drainage of peat are of the order of 17 t C/ha/yr. C losses from other (non-peat) organic rich soils can also be very high.

117. The paradigm example of carbon-rich soils are peatlands. However, no globally accepted definition of peatland exists. Peatlands have variously been defined as having a minimum peat layer of 20, 30, 45, 50 or 70 cm thick (Agriculture Canada 1987). These numbers have their background in land use and reflect standard plough depths, thickness before consolidation, and suitability for peat extraction, respectively. Recently, the Indonesian Climate Change Centre proposed for mapping purposes a minimum peat depth of 50 cm2. None of these definitions have been informed by climate relevance. In the HCS+ approach the latter aspect must, however, have a central position.
118. With a conservative carbon density of 0.06 g cm-3 (Dommain et al. 2011; Warren et al. 2012), a typical tropical peatland has per ha a carbon stock of 6 tons per cm of peat depth. A lower soil carbon threshold of 40 t C ha-1 (the ‘palm oil equivalent’) then translates in a peat layer of 6.7 cm thick. This means that isolated, very shallow peat covered soils can be converted with little climate concern.

119. An upper soil carbon threshold of 75 t C /ha translates in a peat depth of 12.5 cm. This means that all tropical peatlands, whatever their definition with respect to minimum peat thickness, surpass the uppermost HCS+ threshold value. Therefore, the HCS+ approach merely has to identify the presence of peatlands, not their total soil carbon stock.

120. Whereas the typical Southeast Asian peat largely consists of organic matter, other peats may hold substantial mineral material. Again, ‘peat’ has not been internationally standardised but has, depending on country and discipline, been defined as requiring a minimal content of 5, 15, 30, 50, 65% or more (dry mass) of organic matter (cf. Andrejko et al. 1983, Agriculture Canada 1987, Driessen & Dudal 1991, Succow & Stegmann 2001). For the tropics, Wüst et al. (2003) distinguish between ‘peat’ (with > 45 % organic matter OM), ‘muck’ (35 % < x < 45 % OM), ‘organic-rich soil sediment’ (20 % < x < 35%) and ‘mineral soil or sediment’ (<20 % OM). The threshold between organic and mineral soils is in most classification systems between 20-35 % OM (~12-20 % organic carbon; cf. Wüst et al. 2003). The latter definition is largely in line with the definition of ‘organic soil’ of FAO and IPCC (see below). The World Reference Base for soil resources (WRB 2014) uses a minimum of 20 % organic carbon (~ 35 % OM) to qualify as an organic soil. The commonly referred to FAO definition of ‘histosol’ (1998, 2006/7) is rather complex: It refers not only to the thickness of soil layers and their organic content but also to their origin, underlying material, clay content and annual period of water saturation.

121. The amount of soil organic matter (SOM) is commonly expressed as a percentage of the dry bulk weight of a soil. This weight percentage does not translate linearly into the climatically more relevant carbon density Cd, as SOM is lighter than mineral soil components. The lower boundary for carbon content of an FAO organic soil is 18% by weight in a soil otherwise consisting of clay. The bulk density of this soil is about 0.14 g cm-3 (Ruehlmann & Körschens 2009), which means the Cd is 0.026 g cm-3. Increased amounts of SOM result in lower dry weight and consequently Cd is calculated as a higher percentage of a lower weight. As a result, Cd decreases to 0.024 g cm-3 for a carbon content of 30% and then increases to 0.06 g cm-3 for a purely organic soil (57% C; see above). So the Cd of an organic soil with admixture of clay is always higher than 0.02 g cm-3. The value of 0.02g cm-3 corresponds to the lowest values in the analysis of Warren et al. (2012) on Indonesian peat soils. For such soils, a lower threshold of 40 t C ha-1 would be achieved with an organic soil thickness of 20 cm, an upper threshold of 75 t C ha-1 with a thickness of 37.5 cm (Figure L). When sand is mixed in, the bulk density of the soil is much higher and Cd is never below 0.06 g cm-3 (Figure L).

122. This means that tropical organic soils always surpass an uppermost 75 t C threshold value when they have an organic layer of more than 37.5 cm thickness, whatever its organic matter content may be, and mostly this is achieved with a thickness of 12.5 cm.

References cited in draft report specifically mentioning "peat" in titles include:
  • Andriesse, A.J. (1988). Nature and management of tropical peat soils. FAO Soils Bulletin 59, FAO Rome. [online] Available at: http://www.fao.org/docrep/x5872e/x5872e00.htm#Contents [Accessed 12 Jun 2015]
  • Ballhorn, U., Jubanski, J., Siegert, F. (2011). ICESat/GLAS data as a measurement tool for peatland topography and peat swamp forest biomass in Kalimantan, Indonesia. Remote Sensing 3:1957–1982.
  • Couwenberg, J., Hooijer, A. (2013). Towards robust subsidence-based soil carbon emission factors for peat soils in south-east Asia, with special reference to oil palm plantations. Mires and Peat, 12, Article 01, 1–13.
  • Dommain, R., Couwenberg, J., Joosten, H. (2011). Development and carbon sequestration of tropical peat domes in south-east Asia: links to postglacial sea-level changes and Holocene climate variability. Quaternary Science Reviews 30: 999-1010.
  • Englhart, S., Jubanski, J., Siegert, F. (2013). Quantifying Dynamics in Tropical Peat Swamp Forest Biomass with Multi-Temporal LiDAR Datasets. Remote Sensing, 5(5).
  • Jaenicke, J., Rieley, J.O., Mott, C., Kimman, P., Siegert, F. (2008). Determination of the amount of carbon stored in Indonesian peatlands. Geoderma 147:51–158.
  • Lähteenoja, O., Ruokolainen, K., Schulman, L., Alvarez, J. (2009). Amazonian floodplains harbour minerotrophic and ombrotrophic peatlands. Catena 79:140–145.
  • Lawson, I.T., Kelly, T.J., Aplin, P., Boom, A., Dargie, G., Draper, F.C.H., Hassan, P.N.Z.B.P., Hoyos-Santillan, J., Kaduk, J., Large, D., Murphy, W., Page, S.E., Roucoux, K.H., Sjögersten, S., Tansey, K., Waldram, M., Wedeux, B.M.M., Wheeler, J. (2014). Improving estimates of tropical peatland area, carbon storage, and greenhouse gas fluxes. Wetlands Ecology and Management 10.1007/s11273-014-9402-2.
  • Phillips S, Rouse GE, Bustin RM (1997) Vegetation zones and diagnostic pollen profiles of a coastal peat swamp, Bocas del Toro, Panama´. Palaeogeogr Palaeoclim Palaeoecol 128:301–338.
  • Warren, M.W., Kauffman, J.B., Murdiyarso, D., Anshari, G., Hergoualc’h, K., Kurnianto, S., Purbopuspito, J., Gusmayanti, E., Afifudin, M., Rahajoe, J., Alhamd, L., Limin, S., Iswandi, A. (2012). A cost-efficient method to assess carbon stocks in tropical peat soil. Biogeosciences 9: 4477–4485.
     

Eye on Brazil: 5 million hectares of sustainable Amazon oil palm eyed, China $150 billion infra spend plan for Brazil, Petrobras' political corruption scandal

I was talking yesterday to Nicholas (Khor Reports research assistant) about Brazil oil palm. So since we've not really covered this here, I've gathered a few links below. It is fascinating to see China's infrastructure investment plans for Brazil to lower cost of bringing its product to market. That has been quite the bane of agriculture producers in Brazil interior. Brazil has identified a maximum 5 million hectares for oil palm, mostly for biodiesel purposes (imagine the cost savings of not having to transport diesel inland). How is this proceeding?

Also to note a key project is by Petrobras-Vale and the former is mired in a massive political corruption problems:
 

.............
China - Brazil $50 billion infrastructure investment plan

China to invest $50 billion in Brazilian infrastructure AFP By Damian Wroclavsky May 14, 2015 7:27 PM; Brasília (AFP) - China will invest $50 billion to help overhaul Brazil's aging infrastructure, Brasilia said Thursday, ahead of an official visit by Chinese Prime Minister Li Keqiang. "There are $50 billion in new projects," said Jose Graca Lima, Brazil's undersecretary of state, who oversees Asia and Oceania. "We shall have to await the end of the visit to expand upon which projects," he said, without providing details. Battling a fifth straight year of poor growth and mired in a bruising graft scandal involving state oil giant Petrobras, Brazil is seeking to revamp its sagging infrastructure ahead of next year's Rio Olympics, the first Games to be held in South America. A Brazilian government source said Brazil, Latin America's biggest economy, was determined to overhaul its dilapidated roads, railways, airports and ports ahead of the Olympics. The Chinese cash infusion is set to cover various sectors, including transport and energy. http://news.yahoo.com/china-invest-50-billion-brazil-212318218.html

China's ICBC, Brazil's Caixa to start $50 billion fund -sources Wed May 13, 2015 5:43pm EDT BRASILIA; May 13 Caixa Econômica Federal, Brazil's top mortgage lender, and the Industrial and Commercial Bank of China Ltd (ICBC) will create a $50 billion fund for Brazilian infrastructure investments, two government sources with knowledge of the plans said on Wednesday. The fund will be financed entirely by the ICBC, but both banks need to set up the regulatory framework to decide on the projects, said the Brazilian sources, who requested anonymity because the plan remains private. The plan will be formally announced when Chinese Premier Li Keqiang visits Brazil next week, they added. Caixa and ICBC will sign a memorandum of understanding during Li's visit in which the main terms for the fund will be outlined, the sources said. The governments agreed the fund will finance a railway link from Brazil's Atlantic coast to the Pacific Ocean in Peru as a way to reduce the cost of exports to China, said one of the sources. The fund will also finance a joint-venture to produce steel in Brazil. In January, Chinese President Xi Jinping pledged $250 billion in investment in Latin America over the next 10 years as part of a drive to boost resource-hungry China's influence in a region long dominated by the United States. Last year, China and Brazil agreed $7.5 billion in financing for Brazilian miner Vale SA, and the purchase of 60 passenger jets from planemaker Embraer SA. http://www.reuters.com/article/2015/05/13/caixa-ec-federal-icbc-fund-idUSL1N0Y41C020150513
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News links on Brazil oil palm topics

Oil palm set to take over from cattle ranching as the biggest threat to Brazil’s Amazon rainforest?  By Chris Lang 10 November 2014  Despite the reduction in deforestation in Brazil over the past decade, “the deforestation problem is far from solved”, notes Datu Research in a recent report about the beef industry and deforestation in Brazil. Datu describes the most effective tactic in reducing deforestation as “pressure from Western companies that demand deforestation-free supply chains”.  Demand for Brazilian beef is increasing. In August 2014, Russia announced a suspension of beef imports from several countries, including the USA, Australia, and the EU. Even before that announcement, demand was increasing. The Brazilian Beef Exporting Association reports that beef exports increased by more than 10% in the first eight months of 2014.  Datu argues that with the expansion of palm oil and other commodities, “it will become increasingly difficult to attribute deforestation to a specific commodity, making commodity-by-commodity enforcement methods less effective”. Instead, Datu and the Environmental Defense Fund (which paid for the report) suggest complementing deforestation-free supply chains with “enforcement and certification mechanisms focused not by commodity, but by jurisdiction”........ Datu is promoting a “zero net deforestation” approach, where forest can be cleared in some areas, “as long as other areas are sufficiently reforested to maintain net carbon density”. This raises the risk that biodiverse forests could be cleared, and “offset” by monocultures of fast-growing eucalyptus plantations.  Or even oil palm. Datu notes that the Brazilian government sees palm oil as a win-win opportunity: green fuel, green jobs, and a carbon sink “ideal for reforesting lost segments of the Amazon”. The report notes that REDD “has not yet been implemented at sufficient scale to have significant impact”. But with the jurisdiction approach, Datu writes that “the stage would be set” for REDD, “giving producers economic incentives”. In other words, payments from the sale of carbon credits that would allow greenhouse gas emissions to continue elsewhere.... http://www.redd-monitor.org/2014/11/10/oil-palm-set-to-take-over-from-cattle-ranching-as-the-biggest-threat-to-brazils-amazon-rainforest/

Oil Palm Changes Rural Culture in Brazilian Amazon By Fabiana Frayssinet; CONCORDIA DE PARÁ/MOJÚ/ACARÁ, Brazil , Nov 20 2013 (IPS) - Thousands of small farming families in Pará, in the Amazon jungle in northeast Brazil, have turned to the African oil palm as a new source of income, through contracts with biofuel companies. Strange bedfellows, which poses cultural and economic challenges. The small farm of Antônio de Oliveira smells like a mixture of oranges, black pepper and achiote or annatto (Bixa orellana), a shrub whose fruit is harvested for its seeds, which contain a natural dye that has coloured his farm red. “I didn’t know anything about oil palm…it’s really different to work with, it’s a queer bird, and complicated,” said Oliveira, who signed a contract with the biofuel company Biopalma three years ago to plant African oil palm (Elaeis guineensis), known as “dendê” in Brazil. Biopalma belongs to the Vale mining company, and has 60,000 hectares of oil palm of its own. In addition, it buys the output of small farmers through its Family Agriculture programme. The company plans to use palm oil to produce biodiesel to run the machinery and vehicles at its mines..... http://www.ipsnews.net/2013/11/oil-palm-changes-rural-culture-in-brazilian-amazon/

Petrobras, Vale May Join to Make Brazil Palm Oil and Biodiesel 'By'Stephan Nielsen 2:32 AM HKT  August 15, 2012 Aug. 14 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-controlled oil company, and Vale SA are discussing a partnership to produce palm oil and biodiesel in the northern state of Para. Both companies are currently developing separate biodiesel projects in the state, Rio de Janeiro-based Petrobras said today in a statement. Petrobras’s biofuels unit said it will build a 230 million-liter (60.7 million-gallon) a year biodiesel facility in Para in its five-year plan for 2012-16, according to the statement. Vale plans to produce biodiesel from the palm oil in the region and mix it with regular diesel to fuel its Brazil operations from 2015, Petrobras said. http://www.bloomberg.com/news/articles/2012-08-14/petrobras-vale-may-join-to-make-brazil-palm-oil-and-biodiesel

Brazilian mining giant buys Amazon palm oil company  mongabay.com  February 03, 2011; Vale, a Brazilian mining giant, will buy palm oil producer Biopalma da Amazonia SA Reflorestamento Industria & Comercio, reports Bloomberg.  The deal, valued at $173.5 million, will enable the mining company to run more of its operations on palm oil biodiesel.  Vale began its palm oil push in 2009 when it formed a partnership with Biopalma. At the time Vale said the deal would save $150 million in fuel costs starting in 2014, with palm oil biodiesel replacing up to 20 percent of diesel consumption in the company's northern operations.  Biopalma has six oil palm plantations covering 18,400 hectares (45,467 acres) in Para, according to Vale. The company expects this to expand to 60,000 ha in 2013. The announcement comes less than a year after Brazil laid out plans to dramatically expand palm oil production in the Amazon. The initiative, called the Program for Sustainable Production of Palm Oil (O Programa de Produção Sustentável de Óleo de Palma), will provide $60 million to promote cultivation of oil palm in abandoned and degraded agricultural areas, including long-ago deforested lands used for sugar cane and pasture. ... http://news.mongabay.com/2011/0202-vale_biopalma.html

Brazil launches major push for sustainable palm oil in the Amazon by Rhett A. Butler, mongabay.com  May 07, 2010 "Sustainable" palm oil effort may pressure Malaysia and Indonesia on environmental performance of widely used vegetable oil. Brazilian President Lula da Silva on Thursday laid out plans to expand palm oil production in the Amazon while minimizing risk to Earth's largest rainforest, reports Globo and Terra Brasil. The plan, called the Program for Sustainable Production of Palm Oil (O Programa de Produção Sustentável de Óleo de Palma), will provide $60 million to promote cultivation of oil palm in abandoned and degraded agricultural areas, including long-ago deforested lands used for sugar cane and pasture. Brazilian officials claim up to 50 million hectares of such land exist in the country.... Although Embrapa, Brazil's agricultural research agency, has identified some 29 million hectares (71.6 million acres) of land suitable for oil palm cultivation in the Amazon and 2.8 m ha (6.9 m acres) outside the region — an area that would dwarf the 13 m ha of oil palm currently cultivated worldwide — Brazil says it will strictly limit development to less than 5 million hectares. The program specifically prohibits expansion at the expense of native forests, a major concern among environmental groups that have watched the relentless conversion of tropical forests across Malaysia and Indonesia for oil palm over the past 25 years. The palm oil program marks a new focus for Brazil, which currently produces about 110,000 metric tons of crude palm oil per year, a fraction of the amount produced by market leaders Indonesia (16.9 million metric tons in 2008) and Malaysia (15.8 m tons), according to the FAO. But Brazilian growers could see a boost in the international market if they can cost-effectively produce palm oil without driving direct or indirect deforestation, a concern that has dogged Malaysian and Indonesian producers. Brazil says it will rely on its world-class satellite monitoring system to ensure that expansion does not cause deforestation.  Read more at http://news.mongabay.com/2010/0507-amazon_palm_oil.html#Ap41ACGGl564lQL5.99


HCS vs HCS vs HCS?: Greenpeace led HCS Approach toolkit approved; Greenpeace promotes its HCS Approach as a "tested and leading methodology"

The HCS approach is getting rather contested and confusing as companies straddle different areas.  One is led by Greenpeace is the HCS Approach (apparently done largely by the NGO via pilot study with Golden Agri Resouces and possibly with a handful of other corporate sector players). Another (still ongoing) is via the Sustainable Palm Oil Manifesto Group (SPOM) led by academics and think tankers. At the RSPO, the equivalent is the GHG emission reductions policy in its New Plantings Procedure (we're not sure who vetted the parameters in its calculator).


19 April 2015: Greenpeace led HCS Approach toolkit approved in April

Palm oil companies, NGOs endorse new deforestation-limiting toolkit by  Morgan Erickson-Davis April 06, 2015; Forests not only house many of the world's species, but also much of its carbon. Now, a toolkit has been developed by a group of companies and organizations with the aim of helping other companies and NGOs identify High Carbon Stock (HCS) forests. The toolkit was endorsed last week by major NGOs and plantation companies in Singapore.... http://news.mongabay.com/2015/0406-mrn-morgan-new-toolkit-tells-companies-where-they-should-not-clear.html#ixzz3XiaxE0ls
HCS Approach toolkit here: http://highcarbonstock.org/the-hcs-approach-toolkit/

12 December 2014: Greenpeace promotes HCS Approach as a "tested and leading methodology"

Jokowi's Call for Ecological Reform Reaches Palm Oil Firms; Jakarta Globe  - ‎Dec 9, 2014‎;  "Following last week's strong pro-peatlands and forests commitment by newly inaugurated President Joko Widodo, two of the world's largest palm oil producers and traders have announced policies to address the criticism of deforestation in their supply ...The High Carbon Stock Approach, (Greenpeace) the global environmental group argues, is a tested tool that identifies degraded areas suitable for plantation development and forest areas that merit protection to maintain and enhance carbon, biodiversity and social values.... It is being overseen and further refined by the multi-stakeholder High Carbon Stock Approach Steering Group, which involves international non-governmental organizations including Greenpeace as well as palm oil producers Cargill, Agropalma, Wilmar, New Britain Palm Oil, Daabon and Golden Agri Resources, and one of the world’s largest pulp and paper companies Asia Pulp & Paper (APP)...... Both Musim Mas and KLK are part of the Malaysia-based Sustainable Palm Oil Manifesto (SPOM), an industry initiative that has commissioned further carbon study. In their new policies, the companies say they will adopt the outcomes of that study after 2015...."; http://thejakartaglobe.beritasatu.com/news/jokowis-call-for-eco-reform-reaches-palm-oil-firms/