Saturday, May 17, 2008

By letting big onpalm oil, Indonesia is destroying the environment, condemning many endangered species to extinction and gambling with the future of generation to come, according to Greenpeace.
By Albertus Weldison Nonto

The "DARKER SIDE" OF THE PALM INDUSTRY has recently been is exposed in an report, How to Palm Oil is Cooking the Climate.
The environmental group Greenpeace says burning and massive land clearing carried int he palm oil industry makes Indonesia the world's third largest country in carbon dioxide emissions behind th US and China.
It says well-sustantiated figures suggest 1,8 billion tons of greenhouse gases are released by degradation and burning of Indonesia's peat lands each year - equal to 4% of the planet's total emissions.
Environmentalists are alarmed by Indonesia's plan to increase the size of palm oil plantation to 20 million hectares from the current figures of about 7,3 million hectares. This is equal in size to Great Britain, Holland and Switzerland lumped together.
Greenpeace also says unchecked palm oil expansion could eventually lead tot he extinction of endangered species like the sumateran tiger, the orang utan and hundreds of smaller birds, fish and animals found only in the Indonesian Rain Forest.
It argues that the growth of plantations on peat lands increases gas emissions (GHG) as peat soils dry out, oxidize and in some cases burn.
It estimates that 10 million of Indonesia's 22 million hectares of peat lands are now marked for destruction in the path of palm oil.

Rising Conflict
According to local independent environmental organization Sawit Watch, social conflict between people dependent on the rainforest for their survival and plantation owners is escalating. More than 500 cases of conflict have been reported and figures are rising dramatically as more forest is destroyed.
Some of the world's major businesses are driving forces behind plantation expansion in Indonesia, with demand increasing and rising prices for essential food products like cooking oil.
Global giants like Nestle, Unilever, Cargill and Proctor and Gambel are among the end users of palm oil. They have organized the Roundtable on Sustainable Palm Oil (RSPO), an initiative chaired y Unilever.
These companies consume 40% of world CPO production. Unilever alone uses 1,2 million ton per year,most coming from Indonesia. This represents 3% of world CPO production.
Other multinationals, including : Gillete, Pringles, Philadelphia Cream, Cadbury and Burger King, are also complicit in the expansion of palm plantations in Indonesia.
In the past 50 years, 74 million hectares of forest have been destroyed, burned, degraded and pulped. A report by the United Nations on Environment Program last year says palm plantation expansion in Indonesia is among the major man-made causes of rainforest destruction in Indonesia.
Demand for palm oil is expected to double by the year 2030 and triple by 2050.

Sad record
Trading in Indonesian Palm Oil is dominated by big traders in Singapore. Cargil, a US company, is a major player along with the Indonesian- Malaysian alliance of ADM-Kuok-Wilmar-the world's biggest bio fuel producer. A Malaysian Government entity,Synergy Drive, also has major holdings in Indonesia.
Riau province in Sumatra is among the main locations for palm plantations in Indonesia = more than a quarter of the are under plantation is on peat land.
In figures released last year, 1,4 million hectare of land in Indonesia has been usurped by the palm industry . It is predicted that in the next decade half the province will covered with oil palm trees.


Players

Company/Group

Land Banks

(Hectares)

Planted Area

(Hectares)

CPO Productions

(in tones)

GlobeAsia ’07 Rich List

1.

Eka Tjipta Widjaja

GoldenAgri/SMART

1,300,000

359,732

1,967,092

#3

$3.1 Billion

2

Anthony Salim

Indofood Agri Resources

570,000

374,000

1,013,637

#4

$2.8 billion

3

Sukanto Tanoto

Asian Agri

515,000

170,000

710,000

#6

$1.3 billion

4

Martua Sitorus

Wilmar International

573,000



#12

$615 Million

5

Astra Agro Lestari

Astra International

500,000

238,000

920,000


6

Guthrie Bhd

Minamas Gemilang

288,000




7

Martias

Ciliandra Group

278,000

86,000

278,000


8

Aburizal Bakrie

Bakrie Sumatera Plantation

210,000

78,000

210,000

#8

$1.05 Billion

9

Teddy Rachmat and Benny Subianto

Tri Putra Agro Persada

200,000

120,000

220,000

#32

$320 Million

10

Liem Haryanto

Bumitama Gunajaya/Harita Group

200,000

50,000



11

Surya Darmadi

Duta Palma Group

200,000

54,000

190,000


12

Osbert Lyman

Lyman Agro

190,000

40,000


#23

$400 million

13

Putera Sampoerna

Sampoerna Agro

182,000

78,000

245,908

#5

$2.2 Billion

14

Gunawan Raya Family

Incasi Raya Group

174,000

36,000



15

Golden Hope (Malaysia)

Malaysia

170,000




16

Bachtiar Karim

Musim Mas

100,000

70,000

210,000

#51

$230 Million

17

Widarto and Santoso Winata

Tunas Baru Lampung

106,000

47,000


#101

$ 98 million

18

Susanto Lim

Sawitmas Group

105,000

47,000



19

Sipef Group

Belgian investment Group

52,000

30,000



20

Rowe Evans

Rowe evans

40,000

25,000



1 comment:

Anonymous said...

great post. i will be back to read some more.