Stealing Palm Oil Plantations in West Papua

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The land owner is only paid 65 US cents (Rp. 6,000) per hectare

Bogor- 5 Juni 2012. Oil palm plantation companies which are partly owned by Norway only pay landowners in Papua at US $ 0.65 (Rp. 6,000) per hectare for their forests.

In the latest briefing, Kesat Mata Exploitation, Telapak together with the Environmental Investigation Agency (EIA) revealed how PT Henrison Inti Persada (PT HIP) paid low and marginalized Moi indigenous people for land and timber.

We were able to obtain evidence in the form of a ‘contract’ between PT HIP and the head of the Moi indigenous community clan which contained a detailed payment of US $ 923 for 14.2 cubic meters of forest land or around US $ 0.65 (Rp. 6,000) per hectare.

When the Hong Kong conglomerate group, Noble Group bought a majority stake in PT HIP in 2010, industry observers estimated that the oil palm plantation would be worth US $ 162 million if it was developed (based on calculations of US $ 5,000 per hectare) – or 7,812 times the price received by landowners indigenous people of Moi per hectare.

Kesat Mata Exploitation also provides detailed payments as low as US $ 25 per cubic meter to landowners for timber obtained in the process of clearing their forests, including for high value merbau wood. Our search shows that the company is exporting merbau at a price of US $ 875 per cubic meter to generate millions of dollars in profits.

Telapak and EIA further discovered the history of legal irregularities in the development of plantations and timber extraction – violations were never dealt with by officials who were supposed to protect the forests and people of West Papua. Violations of the law include clearing forest land and unlicensed use of wood and the failure to develop a plasma plantation system that complies with official requirements.

Keuntungan pembangunan seperti rumah, kendaraan, dan pendidikan Development benefits such as houses, vehicles and education promised to poor landowners have never been realized by the company.

Jago Wadley, Forest Campaigner EIA said, “Papuans are some of the poorest citizens in Indonesia and have been exploited through oil palm plantations agreements that provide huge profits for international investors at the expense of communities and forests in West Papua.”

This briefing also underscores how Norway has contributed to the plantation through its multi-million dollar stake in Noble Group.

Norwegia telah dikenal dalam dunia internasional sebagai pemimpin Norway is internationally recognized as a leader in climate change. This refers to the political and financial investments that they apply in their efforts to reduce greenhouse gas emissions from deforestation and degradation, also known as REDD + in Indonesia as well as in various other countries.

Telapak dan EIA berpendapat bahwa kontradiksi tersebut harus Telapak and EIA argue that the contradiction must be considered. If left unchecked, investment and commodity markets will continue to destroy forests and underestimate local communities and efforts to reduce greenhouse gas emissions from deforestation are useless.

“Norway – the largest REDD + donor to Indonesia – will also benefit from the destructive exploitation that has taken place. This is very ironic considering that Norway could have provided funds for Papuans to protect their forests, instead of taking advantage of deforestation in West Papua, “explained Abu Meridian, Campaigner for the Palm Forest.

Contact Person:

  • Abu Meridian – atau +62857-15766732
  • Jago Wadley – atau +4420-73547960

Note for Editro:

  • Telapak is an association of NGO activists, business practitioners, academics, media affiliates, and indigenous peoples. Telapak works together with indigenous peoples, farmers and fishermen in Indonesia to realize sovereignty and a dignified and sustainable life. One of Telapak’s main missions is to lead change towards democracy and sustainability. Information about Telapak can be found on the website
  • The Environmental Investigation Agency (EIA) is an environmental organization that investigates and campaigns against environmental crimes, including wildlife trade, illegal logging, toxic waste, and trade in chemicals that damage ozone and the climate. Information about EIA can be found on the website
  • Henrison Inti Persada (PT HIP) is a plantation company established in Sorong, West Papua by the Kayu Lapis Indonesia Group. PT HIP obtained a permit for a 32,500 hectare oil palm plantation in Sorong.
  • Noble Group is a commodity giant registered in Hong Kong and included in the Singapore stock list with a turnover of US $ 88 billion in 2010.
  • In 2010, Noble Group bought 51 percent of PT HIP’s shares with a value of US $ 24,525,000 as Noble’s first investment in oil palm plantations.
  • Norwegian Government Pension Fund Global (GPFG) is the largest wealth fund in the world with an estimated value of US $ 570 billion.
  • In December 2009, GPFG gave US $ 38,973,707 as shares in Noble Group, increasing the value of shares tenfold from December 2008 which was valued at US $ 3.9 million. In 2010, when Noble bought PT HIP, GPFG raised its stake in Noble by US $ 8 million until the value of their shares to US $ 47,053,410.
  • In May 2010, Norway and Indonesia approved a Letter of Intent (LoI) on REDD +. In the LoI it was mentioned that Norway gave US $ 1 billion to Indonesia as a substitute aid and compensation for reducing emissions from the Indonesian forestry sector.


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