Progress Report to RSPO CP Complaint on PT KPC + 17 PTs Sep 2016
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1 Progress Report to RSPO CP Complaint on PT KPC + 17 PTs Sep 2016
2 Contents 1. Summary of key events (Jul-Sep 2016) 2. Status of GAR follow-up on CP decisions 3. Summary status of agreed action plan 4. Next Steps slide 2
3 1. Summary of Key Events (Jul Sep 2016) slide 3
4 1. Summary of key events (Jul 2016 Sep 2016) Date Event Details Status Jul-Aug 2016 Key community consultations and meetings on land tenure and remediation in KPC Facilitated by LINKS Communities in KPC decided that Sijil Hak Milik (SHM) is preferred to HGU for Plasma Menapar community requested that GAR develops 118 ha of agreed Plasma before finalizing on additional lands identified to be acquired for Plasma GAR accepts community preference and will facilitate accordingly GAR preparing for development of 118 ha for Plasma Jul-Aug 2016 Aug 2016 Participatory mapping exercise for -- PTs completed/in progress Legality review by HPRP completed 6 PTs completed. Remaining PTs in progress: 4 planned to be completed by end 2016, of which: 1 PT pending map completion for distribution. 2 PTs completed public consultation and currently conducting mapping exercise. 1 PT plan public consultation in early Sept as agreed with community. HPRP submitted report to RSPO On page 40 of the legal review HPRP concludes In brief, aside from findings delivered in Point III.5 herein, we would view that on the Complaint Date GARs Subsidiaries had complied with prevailing laws and regulations in Indonesia. GAR confirms acceptance of report findings RSPO to send report to FPP and CP Implementation ongoing GAR accepts report findings. Will take necessary actions as prescribed in Section III.5. GAR also notes the findings that these outstanding actions do not prevent GAR from continuing its plantation activities and the summary finding that aside from these, GAR is in compliance with the prevailing laws and regulations in Indonesia. slide 4
5 1. Summary of key events (Jul 2016 Aug 2016) Date Event Details Status Jul/Aug 2016 HCV conservation and monitoring workshops with communities facilitated by Ekologika Ongoing Ongoing Jul/Aug 2016 FPIC Remediation in remaining PTs The team finished desktop analysis of HCV4-6 and published reports on 24 PTs in Jul. Preparation in progress for community engagement in PT AKM and MKA Sep 26 th planned for start for PT AKM and MKA Aug Meeting with RSPO on Legacy FPIC Project RSPO briefed GAR that as part of the Indonesian NI review decision, an Indonesian FPIC Guidance will be developed and Management of Legacy FPIC issues will be part of this guidance. A Task Force is likely to be formed to develop this and complete its job in 1 year from expected inception in Aug/Sep 2016 GAR offers to be part of the Task Force, offering its experience in FPIC remediation FPIC Remediation of KPC and other PTs will continue as per agreed actions and TOR slide 5
6 2. Status of GAR follow-up on CP decisions slide 6
7 2. Status of GAR follow-up on CP decisions RSPO CP Final Decision dated 6 May 2015 GAR follow-up status Update Status Progress Track 1. On FPIC: GAR must take remedial actions to correct shortcomings in its land acquisition process with the affected communities. 2. On legal permits and licences: GAR must demonstrate that it possesses the legal documents as required under Indonesian law for land development in the 18 PTs. 3. On exceeding maximum land holdings: To be pursued by the Ministry of Agriculture Replied on 29 May Agreed with FPP on action plan for remediation. Key challenge is to communicate to the community on relevant regulations. TP3K socialize the status of the land after the expiry of HGU to the community on 13 May 2016 (Desa Mantan and Nanga Suhaid). HGU issue was clarified and the community had accepted, in writing, that it accepts that the status of the land will be decided by the government after one cycle (Note: TP3K explained clearly that HGU valid for one cycle and 35 years is the maximum term for plantation, but could be shorter depending of the productivity of the crop). FPP view is that the meetings are only a re-statement of prevailing law and communities acknowledgement of this. HPRP submitted report to RSPO. On page 40 of the legal review HPRP concludes In brief, aside from findings delivered in Point III.5 herein, we would view that on the Complaint Date GARs Subsidiaries had complied with prevailing laws and regulations in Indonesia. GAR agrees with findings and will follow up on Point III.5. RSPO will send report to FPP and CP for review. Update Update No action by GAR, to be pursued by RSPO Historical NA Ongoing (GAR continues to work with communities, facilitated by LINKS, to agree on remediation package. For other PTs, this will be addressed per remediation TORs, see Section 3) Completed 4. On HCV assessments: HCV assessments done by 18 PTs to be subject to peer review. Replied and submitted documents on 29 May 2015 that the original HCV assessments for 18 PTs have been peer-reviewed. As additional measure, Ekologika is engaged to improve the protocol for HCV management and monitoring. FPP met with Ekologika on 8 Apr 2016 to review the work done. GAR understands that FPP is satisfied with the quality of work and progress, particularly the management and monitoring protocol of HCV4-6. MoUs for HCV conservation and monitoring signed with 6 communities, discussions ongoing with 4. Historical Ongoing slide 7
8 2. Status of GAR follow-up on CP decisions RSPO CP Final Decision dated 6 May 2015 GAR follow-up status Update Status Progress Track 5. On plasma: GAR to honour commitment to allocate 20% of land to smallholders. Submitted details to RSPO on 29 May 2015 that plasma constituted 21.3% of planted area. However, GAR recognises that communities calculated 20% allocation based on total area discussed prior to allocation for HCS and other commitments. NPP submission and public posting for plasma development in PT PIP was completed on 6 February GAR have identified potential additional areas in KPC and Menapar community has requested that agreed plasma area (118 Ha) be developed first before additional areas are considered. GAR working on NPP and other processes to start this. Further details in Section 3 below. Update Ongoing 6. On NPP: GAR to declare all land planted with NPP. To clarify on late submission for the 18 PT s. Submitted details to RSPO on 29 May Excerpts from notes of 14 Sep 2015 meeting for recap: RK recap the chronology of GAR NPP posting on 7 Mar 2014 and from the last notes of meeting on 24 Jul 2015, where the RSPO Secretariat acknowledged the agreed proposed approach by GAR in Mar 2012 requesting RSPO not to publish GAR s NPP based on the reasons raised (public listed selective disclosure etc). Darrel Webber will explain to FPP on this agreed RSPO action and will also present to the CP to decide on RSPO action. Historical Completed Action: 1. RSPO will clarify with FPP on the delays in these posting of NPP notifications. 2. RSPO to address on GAR NPP posting with CP and FPP as per notes of meeting on 24 July slide 8
9 2. Status of GAR follow-up on CP decisions RSPO CP Final Decision dated 6 May 2015 GAR follow-up status Update Status Progress Track 7. On new land development: GAR to stop acquiring or developing new land until complaint dealt with. Submitted declaration to RSPO on 18 Dec 2014, repeated in letter of 29 May GAR confirms that it is still suspending acquiring or developing new land in the relevant PT s. Historical Complying 8. GAR / PT KPC to i. Confirm all development halted until complaint resolved ii. Furnish a detailed reply to the allegations Letter from GAR to RSPO dated 25 Mar 2015 confirmed all development in PT KPC halted and furnished reply to allegations. Further clarified in letter dated 29 May Historical Completed slide 9
10 3. Summary status of agreed action plan slide 10
11 3. Summary status of agreed action plan Action Plan Item 1. Completion of Participatory Mapping (PM) in 18 PTs. GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Completion of 7 PTs PM. Completion of Roll out plan for all companies. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Status Update Agreed 6 PTs completed. Remaining PTs in progress: 4 planned to be completed by end 2016, of which: a. 1 PT pending map completion for distribution. b. 2 PTs completed public consultation and currently conducting mapping exercise. c. 1 PT plan public consultation in early Sept as agreed with community. Progress Track Ongoing 2. FPIC guideline (including Land Tenure Study guideline) implementation. Completion of guideline endorsed by relevant stakeholders (e.g. TFT, FPP). Completion of Training and socialization of the guideline. Agreed FPIC SOP was reviewed by FPP and its comments were incorporated resulting in the Enhanced FPIC SOP. The SOP is currently being refined further based on the revised RSPO guideline published in Feb A Land Tenure Guide was also developed. GAR will apply the guide, when there is an overlapping land claim between communal land and cadastral boundaries. For example, GAR referenced the guide to resolve the Kenabak Hulu land claim. Ongoing slide 11
12 3. Summary status of agreed action plan Action Plan Item GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Status Update Progress Track 3. Land Remediation in KPC (FPIC Consultation) Conduct FPIC consultation in all relevant villages. Implementation of FPIC consultation. Detail roll out plan in relevant villages in KPC shared with FPP. Agreed 1. TP3K socialized the status of the land after the expiry of HGU to the community on 13 May 2016 (Desa Mantan and Nanga Suhaid). HGU issue was clarified and the community now understands and accepts that the status of the land will be decided by the government after one cycle (Note: TP3K explained clearly that HGU valid for one cycle and 35 years is the maximum term for plantation, but could be shorter depending of the productivity of the crop).. FPP view is that the meetings are only a restatement of prevailing law and communities acknowledgement of this. 2. Communities in KPC have decided that Sijil Hak Milik (SHM) is preferred to HGU for Plasma. GAR will faclilitate. 3. PLASMA area allocation: GAR has identified some areas and in discussions with community about acquiring additional land for PLASMA., Menapar community has requested that agreed plasma area (118 Ha) be developed first before additional areas are considered. GAR working on NPP and other processes to start this. Ongoing slide 12
13 3. Summary status of agreed action plan Action Plan Item GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Status Update Progress Track 3. Land Remediation in KPC (FPIC Consultation) Conduct FPIC consultation in all relevant villages. Implementation of FPIC consultation. Detail roll out plan in relevant villages in KPC shared with FPP. Agreed 4. GAR has studied the new option of Hak Komunal as proposed by FPP based on the new Ministerial level regulation (Permen Agraria 9/2015). The initial findings confirm that this option has not yet been applied in Indonesia in a similar context. The regulation is still lacking in implementation detail/ supporting law as well as clarity in terms of the relationship with existing Indonesian plantation law. There would also be impact on the financial agreement already in place for both inti and plasma as that financial agreement is tied with the HGU/SHM conditions. GAR conclusion is that this option is not feasible for KPC but is open to explore in other new developments. Ongoing slide 13
14 3. Summary status of agreed action plan Action Plan Item GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Status Update Progress Track 4. Enhancement of HCV assessment Sharing of draft enhancement protocol (assist by Ekologika). Sharing of roll out schedule of the protocol. Incorporating the enhanced protocol in any submitted NPP. Agreed FPP met with Ekologika to review the management and monitoring protocol on 8 Apr GAR understands that FPP is satisfied with the quality of work and progress. Workshops conducted with communities: 1. PT PIP: All communities signed MOU for conservation and monitoring. 2. PT KPC: 2 communities signed, 4 communities in discussion. 4 communities reject MOU, but these are outside the cadastral. Ongoing slide 14
15 3. Summary status of agreed action plan Action Plan Item 5. Fulfilment of smallholding commitment. GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Conduct Plasma consultation (community engagement) to discuss the issue with communities transparently. Implementation the agreed resolution resulting from the discussion. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Agreed Status Update From a regulatory standpoint, for the 18 PTs: PTs are obligated to pursue the 20% plasma threshold (Min. of Agri No.26/2007) a. 7 PTs have fulfilled plasma threshold, b. 3 PTs are in fulfilment progress including PT. PIP whose NPP was approved in Feb 2016, c. 2 PTs are in the process of obtaining land and permit, d. 3 PTs are pending government decision to pursue the plasma threshold Progress Track Ongoing 2. 3 PTs are not obligated to meet the 20% plasma threshold (given their IUP permits were issued before 2007), yet pending government decision they will continue to develop plasma for community. 3. All PTs where government decision is pending (1d and 2) are subject to regulations (PP104/2013 and PP60/2012), which resolve a spatial planning dispute between the Ministry of Forestry and the Central Kalimantan provincial government. GAR have submitted pleas for clarification under each PT, but until governmental technical teams finish land analysis and dispute is settled, GARs ability to develop plasma is restricted. (Continued next page) slide 15
16 3. Summary status of agreed action plan Action Plan Item 5. Fulfilment of smallholding commitment (continued) GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Conduct Plasma consultation (community engagement) to discuss the issue with communities transparently. Implementation the agreed resolution resulting from the discussion. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Agreed Status Update From the social point of view, GAR is reviewing documentation to determine, whether local communities and individual PTs have made plasma agreements above and beyond the regulatory threshold. Such is the case in PT KPC, where the community understanding is that management agreed to 20% plasma development on the total compensated (rather than planted) area. Progress Track Ongoing. PT. KPC: 1. GAR explored the possibility of implementing FPP s recommendation regarding release of inti area into plasma. The conclusion is that existing financial arrangements including bank loans for both inti and plasma and also permits with MoA and Kabupaten makes it virtually impossible to change. 2. GAR has identified some areas and in discussions with community about acquiring additional land for PLASMA., Menapar community has requested that agreed plasma area (118 Ha) be developed first before additional areas are considered. GAR working on NPP and other processes to start this. slide 16
17 3. Summary status of agreed action plan Action Plan Item 6. GAR PT s Legality and maximum landholdings GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Agreement of ToR for independent legal opinion (lead by RSPO) to assess PT legality Agreement that the RSPO address the issue of maximum landholdings Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Agreed. Status Update HPRP submitted report to RSPO. GAR agrees with findings. RSPO will send report to FPP and CP for review. Progress Track Completed 7. Remediation of Land developed without proper consent in 17 PTs Agreement of ToR of the Remediation process with FPP Agreed (on 8 Apr 2016) TOR was discussed with FPP (Dr Marcus Colchester) on 8 Apr The proposed changes have been incorporated and remediation is being implemented according to the TOR. The ToR was developed around the same time the RSPO developed (with FPP) a procedure for identifying loss of social HCV4-6. The two efforts are related and inform each other in that they require engagement with the community on legacy issues. Thus, GAR envisioned that the two efforts be coordinated. The team finished desktop analysis of HCV4-6 and published reports on 24 PTs in Jul. Field implementation will began in PT AMK and MKA on 26 Sep. FPP and relevant stakeholders will be updated on progress every 6 months. Ongoing slide 17
18 3. Summary status of agreed action plan Action Plan Item GAR proposal for Lifting of RSPO Stop Work Order on 14 Sep 2015 meeting in KL. Principle agreement on 14 Sep 2015 meeting Agreed/Disagreed by FPP Status Update Progress Track 8. Others: Exclusion from KPC s HGU area of community rejected Palm Start process discussion with the community. Agreed. As reported to FPP on 2 Feb and in the Mar Progress Report, KPC excised relevant areas from its cadastral map and submitted the map to the land agency, BPN. Having completed the PM and excised communal areas, such as in Kenabak Hulu, KPC is not aware of any unresolved overlapping land claim. Closed for monitoring slide 18
19 4. Key next steps Implementation of remediation TORs for remaining 17 PTs Continue with remaining agreed actions in KPC Work on the revised Practical Guidelines for FPIC Fulfilment with FPP inputs Regular progress update and discussion sessions with FPP slide 19
20 Thank you
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