Monthly Update to RSPO CP Complaint on PT KPC + 17 PTs May 2016
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1 Monthly Update to RSPO CP Complaint on PT KPC + 17 PTs May 2016
2 Contents 1. Update of GAR follow-up on CP decisions 2. Update on agreed action plan 3. Next Steps This monthly update focuses only on key activities and progress made in the period since the last complete progress report submitted in March 2016 and the monthly report of April GAR aims to provide RSPO Complaints Panel quarterly progress reports and monthly updates. The next progress report will be submitted in June 2016 slide 2
3 1. Update of GAR follow-up on CP decisions slide 3
4 2. Status of GAR follow-up on CP decisions RSPO CP Final Decision dated 6 May 2015 GAR follow-up status Update Status 1. On FPIC: GAR must take remedial actions to correct shortcomings in its land acquisition process with the affected communities. Replied on 29 May Agreed with FPP on action plan for remediation. Key challenge is to communicate to the community on relevant regulations. TP3K met with the community on 13 May Land tenure/hgu issue was clarified and understood by the community. Outstanding issues of Plasma allocation and legal status is outstanding and will be followed up by LINKS. Update 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. Replied and submitted supporting documents on 29 May On RSPO further decision to engage lawyer to do a legal review of permits and licences, TORs agreed and two proposals received by RSPO. Appointment of HPRP agreed and terms and conditions agreed between RSPO and GAR (GAR agreed to fund legal review) Update 3. On exceeding maximum land holdings: To be pursued by the Ministry of Agriculture No action by GAR, to be pursued by RSPO Historical NA 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 HCV assessments for 18 PTs have been peer-reviewed. As additional measure, Ekologika is engaged to improve the protocol for HCV management and monitoring. Ekologika has nearly completed the protocols in PT KPC and PT PIP. As it involves extensive community consultations, per guidance from FPP, completion takes time. 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. Historical Completed (peer review) (Ekologika assessment) slide 4
5 2. Status of GAR follow-up on CP decisions RSPO CP Final Decision dated 6 May 2015 GAR follow-up status Update Status 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 continues to engage communities for mutually agreeable resolution. Historical 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 5
6 2. Status of GAR follow-up on CP decisions RSPO CP Final Decision dated 6 May 2015 GAR follow-up status Update Status 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 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 6
7 2. Summary update on agreed action plan slide 7
8 2. Summary status of agreed action plan Action Plan Item 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 Agreed Status Update Updated status below. Maps shared with FPP on 4 th week of April slide 8
9 2. 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 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 guideline was reviewed by FPP and its comments were incorporated resulting in the Enhanced FPIC SOP. The SOP is currently being updated based on the revised RSPO guideline published in Feb The Land Tenure Guide was also developed with inputs from FPP. 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. Completed: FPIC and land tenure study guideline. : training and socialisation slide 9
10 2. 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 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 Per TFT update of 8 Apr: The CEO of KPC had a meeting with the head (bupati) of Kapuas Hulu on April. TP3K met with the community on 13 May. Community understood explanation on HGU but issue of PLASMA area allocation and legal status is outstanding. LINKS is following up on the latter. slide 10
11 2. 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 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. slide 11
12 2. Summary status of agreed action plan Action Plan Item 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 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 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 12
13 2. Summary status of agreed action plan Action Plan Item 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 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.. 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 continues to seek other options with the communities including purchase of available land to be assigned to plasma. 3. GAR continues to explain to the communities that where there are shortfalls in the absolute areas to be assigned to plasma, this is mostly due to HCS & HCV. slide 13
14 2. Summary status of agreed action plan Action Plan Item 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 Appointment of HPRP agreed and terms and conditions agreed between RSPO and GAR (GAR agreed to fund legal review) Remediation of Land developed without proper consent in 17 PTs Agreement of ToR of the Remediation process with FPP In discussion. 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. FPP will be updated on progress every 6 months. slide 14
15 2. 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 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 Report, KPC excised communal 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 15
16 3. Key next steps Remediation for remaining 17 PTs based on agreed TOR. Continue exploration of concept of Hak Komunal. Continue with agreed actions in KPC and other PTs. Regular progress update and discussion sessions with FPP slide 16
17 Thank you
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