A new report has revealed the devastating impacts of palm oil investment in Papua, Indonesia, on both the environment and indigenous communities. The study, conducted by researcher Wiko Saputra, found that while the economic benefits of the industry are limited, the environmental and social costs are significant.
Environmental Destruction and Limited Economic Gains
Wiko’s research, presented in a public discussion on 27 August 2024, showed that palm oil plantations in Papua have resulted in substantial deforestation, leading to environmental losses of Rp96.6 trillion. Despite the vast areas of land allocated for palm oil cultivation, only a small portion is actually used for plantations, with the remainder serving as “landbanks” with high economic value.
The economic benefits and tax revenues generated by palm oil investment have been far outweighed by the environmental costs. The cost-benefit ratio of 5.48 per cent indicates that the investment is more harmful than beneficial.
Indigenous Communities Displaced and Food Security Threatened
The expansion of palm oil plantations has had a devastating impact on indigenous communities in Papua. Deforestation has led to a loss of traditional food sources, contributing to food insecurity in many regions. Thirty out of 42 districts involved in palm oil plantation business are now experiencing food insecurity.
Indigenous communities have been demanding an end to deforestation, as their livelihoods and cultural heritage are inextricably linked to the land.
Seizure of Customary Land
In addition to the environmental and social impacts of palm oil investment, the study also highlighted the seizure of customary land in Papua. According to researcher Dr Laksmi A Savitri, around 30 per cent of the land in Papua is now under corporate control, with a total area of 13.26 million hectares used by 374 companies.
During a live-streaming event on 14 September 2024, Dr Laksmi A Savitri, Jhon Gobai, and Dominikus B. Gebze discussed the mechanisms used to seize customary land in Papua. They identified three primary mechanisms: regulatory pressure from above, consumerism from below, and the seduction of intermediaries from the centre. “Around 30 per cent of the land is given by the state to corporations with a work contract between 30 to 90 years,” said Laksmi.
Despite the recognition of customary land rights in several regulations, indigenous communities often find their land transferred to state land or state forest areas. This makes their rights invisible and vulnerable to encroachment.
Jhon Gobai emphasized that the recognition of the rights of indigenous people in Papua has been regulated in the Papuan Special Autonomy Law (UU Otsus), especially in Article 43 paragraphs 1 and 2. He highlighted the importance of dialogue between indigenous people and the government before the investment is made, and ensured the implementation of the Free, Prior and Informed Consent (PADIATAPA).
Call for Sustainable Development and Respect for Indigenous Rights
The findings of the report underscore the need for a more sustainable and equitable approach to development in Papua. The government is urged to stop the exploitation of natural resources and provide opportunities for indigenous communities to manage their own territory.
“If we really want to build Indonesia, the direction must be to the east,” said Wiko Saputra. “The current investment is not a real investment, but a political investment and a trick.”
By prioritising human resource development, education, and local community health, Papua can achieve sustainable growth while respecting the rights of its indigenous people.
