Open letter to the European Parliament, the European Commission, the
governments and citizens of the European Union

PALM OIL FOR BIOFUELS INCREASES SOCIAL CONFLICTS AND UNDERMINES LAND
REFORM IN INDONESIA

Hereby Sawit Watch expresses before the European Parliament, the
European Commission, the governments and citizens of the European
Union, its deep concern over the policies being adopted which promote
the use and import of biofuels as an alternative to fossil fuels.
Their disproportionate use is one of the new driving forces of large-
scale and monoculture oil palm plantation expansion that contributes
to global warming, social conflicts and rights abuses in producing
countries, particularly Indonesia.

Oil palm plantations have been commercially developed in Indonesia
since 1911. Until 2005, oil palm plantations have covered 6.04
million hectares, and existing regional development plans allotted a
further 20 million hectares for oil palm plantations. Amazingly, oil
palm plantations planting rate to have reached 400,000 ha annually.

We are very concerned by the fact that oil palm plantations are a
major cause of deforestation, forests fires, land and water
pollution, and are being imposed on local communities and indigenous
peoples without concern for their rights, livelihoods or welfare, and
managed with insufficient concern for the rights and welfare of
plantations workers and smallholders.

Up to 2006, there have been 350 conflicts related to land issues
against oil palm plantation developments in Indonesia. These
unresolved conflicts, will get worse if the current biofuels policy
is put in place. They will deprive further local communities and
indigenous peoples from their lands and livelihoods.

Biodiesel from palm oil requires intensive capital investment to make
it profitable. If an oil palm plantation and one mill are developed
to produce crude palm oil on an economic scale, it only needs 20,000
hectares, whereas the development of an economically viable and
profitable oil palm plantation for biodiesel requires a minimum of
50,000 hectares.

In light of the high demand for palm oil biodiesel from European
markets, the government of Indonesia and the Association of
Indonesian Palm Oil Growers (GAPKI), seeking to also ensure continued
supplies for existing European food markets, have mutually agreed to
allot 3 million hectares of land for oil palm plantations for
biodiesel production in Indonesia.

The Indonesian President has expressed commitment to move ahead with
agrarian reform through land distribution for farmers. This is
contrary to the presidential decree to encourage biofuels development
for the sake of poverty and unemployment alleviation trough large-
scale oil palm plantations for biofuel production.

The situation described above has led to extreme concentration of
land and natural resources in the hands of only a few business people
from the oil palm plantations and palm oil industries. The potential
implication of such mutually adopted policy in favour of palm oil
expansion is obvious: Millions of hectares of Indonesian lands will
be under the absolute control of major oil palm plantation groups and
a few conglomerates.

It is therefore unavoidable that, as a consequence of Europe's
biofuels policy, the land rights of indigenous peoples and local
communities will be relinquished further, and that food security will
be undermined and lands for agricultural purposes and subsistence
livelihoods will diminish.

The sense of environmentally friendly and reducing greenhouse gases
by producing biofuel from palm oil will make no sense to protect
global climate because million of Indonesians are adversely affected
by this policy and will further hampering resolution of existing
conflicts and protection of the only planet. The idea of palm oil
biodiesel being environmentally sustainable and climate friendly
makes no sense: Emissions from deforestation, peat drainage and fires
release vast amounts of greenhouse gases and fuel global warming
further. Palm oil expansion directly affects millions of Indonesians
and will further hamper resolution of existing conflicts and
protection of the global environment.

It is time for the EU to take corrective and effective measures by
adopting policies and declaring a commitment to global justice which
will lead to real changes which will benefit local communities and
indigenous peoples in Indonesia. It is time to make markets,
governments, and companies accountable

Global justice and solidarity are the only way to end starvation and
to alleviate poverty. Reducing palm oil consumption will help to
create more acceptable living conditions in the southern countries,
including Indonesia.

Development without justice is not development, it is exploitation!

Sawit Watch
Bogor, 26 January 2007

Sawit Watch is an Indonesian Non-Government Organisation, group of
individuals concern with adverse negative social and environmental
impacts of oil palm plantation development in Indonesia. Sawit
Watch's (Oil Palm Watch) individual members work in 17 provinces
where oil palm plantations are being developed. Sawit Watch seeks to
promote social justice through rights based approaches.