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Palm Oil Plantations Encroaching into Tesso Nilo National Park
calendar27-06-2013 | linkWildlife Extra | Share This Post:

27/06/2013 (Wildlife Extra) - The expansion of palm oil plantations into Tesso Nilo National Park needs to be stopped immediately to improve the credibility of Indonesia's palm oil industry.

Illegal encroachment by palm oil producers poses an immediate threat to Sumatra's Tesso Nilo National Park, according to "Palming Off a National Park" a new report launched by WWF Indonesia. However, the situation could be mitigated through a win-win solution proposed by the Minister of Forestry and Regent of Pelalawan, Sumatra, which offers the farmers a voluntary relocation with nearby land provided by the government.

52,000 Acres Already Converted To Oil Palm Plantations

According to the report, up until 2012 over 52,000 hectares of natural forest in Tesso Nilo Forest Complex (made up of a national park and two neighbouring logging concessions) has already been converted to palm oil plantations, with over 15,000 ha of the converted area located inside the national park. WWF urges all parties to work on constructive solutions in order to immediately stop further encroachment and help smallholders already illegally in the area to voluntarily relocate. Local government-especially the agency regulating plantation development-is expected to be more active in managing the allocation of palm oil plantation permits. WWF Indonesia is ready to cooperate with all relevant stakeholders-particularly with the indigenous communities of Tesso Nilo-by mapping the location of plantations and assisting plantation management to implement sustainable practices.

Multinational Companies

The WWF report also shows that up to the end of the first quarter of 2012, two global companies, Asian Agri and Wilmar were not adequately filtered their Fresh Fruit Bunch (FFB) supplies, with some of the fruits sourced from plantations located inside Tesso Nilo National park. As members of the Round Table on Sustainable Palm Oil (RSPO) - under obligation to implement responsible management practices -both companies have since responded to the situation and ceased sourcing from suppliers located inside the park.

Irwan Gunawan, Deputy Director of WWF-Indonesia's Market Transformation Initiative recognizes efforts made by the companies. "WWF welcomes immediate responses taken by Asian Agri and Wilmar in the area. As dutiful members of RSPO they are obliged to make improvements to tackle this problem." WWF calls for both companies to develop and implement a robust and transparent chain of custody, tracking the FFB from smallholder plantations to their mills, as well as conducting internal verification to identify and stop any endorsement for illegal palm oil plantations.

"This problem is not restricted to these companies or the Tesso Nilo area alone. Responsible palm oil companies should implement such procedures throughout their whole operations."

"Buyers of palm oil products should be rewarding the industry that ensures they source palm oil legally and from non-HCV (High Conservation Value) areas," said Nazir Foead, WWF-Indonesia Conservation Director. "It is very crucial for Indonesia, as the largest palm oil exporting country in the world, to cultivate credible systems for sustainable palm oil production."

"WWF encourages the local authorities and the park management to verify land ownerships in order to immediately develop viable solutions such as the relocation mechanism proposed by the government."