Biofuel: An alternative or new problem? (an example case from the developing large scale oil palm plantation in Indone

1. Biofuel: An alternative or new problem?(an example case from the developing large scale oil palm plantation in Indonesia) Presented by Sawit Watch

2. Demand on Biofuels • The Government of Indonesia estimates at least 20% of national diesel and premium in 2020 from biofuel; • Demands of biofuels from developed countries reaches 71 million ton; • By 2005, Japan decided applying 3-5% biodiesel to replace fossil fuel; • EU decided minimum 5,75% biofuels used until 2010;

3. Ambition of the Government of Indonesia • Regarding biodiesel for export not clear yet, but: • The production of bodies from palm oil relevant comes along synergic with the Government of Indonesia’s ambition to be the largest oil palm plantation in the world; • Existing oil palm estates 6,4 M ha. and plans further planning 20 M ha. of lands (Sawit Watch, 2005); • Abundant land and Critical land is available for biodiesel development (22 Million Hectare according to Indonesian Statistic Agency 2004) • Department of agriculture (R&D) estimates production of bodies as 110 million litre (2006), 262,5 million litre (2007), 415,0 million litre (2008), 567,5 million litre (2009), 720,0 million litre (2010), 1,500 million litre (2015), and 4,700 million litre (2025)

4. Policy of the Government of Indonesia • The development applies large-scale plantation system; • Conversion of forests for plantations, planting unproductive forestlands (Presidential Instruction No. 1 Year 2006) • Presidential Regulation 5/2006 states bio fuel production should be achieved more than 5% of national energy production; • Biofuel latest development issues, only commodity of palm oil, ethanol and jatropha are most promoted

5. Latest plans plantation development for biofuels • RNI Group with its 4.220 ha. jatropha plantation; • Bakrie and Rekin develop 25.500 ha. oil palm plantation in Jambi province; • PT Willmar Bioenergy develops 150,000 ha. oil palm plantations in Riau province and East Kalimantan province; • PT AGB with Energy develop oil palm and jatropha in 300,000 ha. of lands; • BPPT with its 650 ha. cassava estates in Lampung province;

6. The system of large-scaleplantation • Monoculture • Monopoly • Requires huge amount of lands • Convert forests become plantations • Involve resettlement of many peoples

7. Social impacts Large scale plantation • National food policy and people’s food sovereignty • Intensify land rights violations of indigenous and local communities • The large-scale monoculture scheme is often generating more severe poverty and turns rural landowner communities into labourers • Plantations workers (especially women) are regularly exposed to toxic substance • Violence and conflict between local communities with company • Loss of biodiversity and those species that are able to survive in the new environment of the plantation frequently come into conflict with humans

8. Environment impact of the Large scale plantation • More Than 20 Million ha Forest lost • Biodiversity Lost • Ecological Damage • Forest Fire

9. Concerns due to biofuels (1) • Competition between food safety and energy interests; • Model of development of large-scale plantation has caused various severe negative impacts. • Indonesia is still in the difficult situation for energy (electricity energy covers only 55% of Indonesian population), Biofuel production is directed for export and controlled by companies in large scale. Those situation shows unbalance coloration (parallel) in counteract the energy problem in Indonesia (this possible in other south countries). There are strong signal that Indonesia will moving toward nuclear develops as the electricity sources.

10. Concerns due to bio fuels (2) • The determination of the quantity on presence commodities for biofuel basic sources (Palm oil ….%. Jatropa…. %, ethanol….%) this uncertain will be sure make the competition between south country to get the biggest market share on biofuel ( … south America through ethanol, South Asia trough palm oil or jatropa, other country through…..) competition is able to be sure move on the massive and cheap which have risk getting more un-sustainable production of palm oil in Indonesia. • There is a problem product on distribution and utility from the dominant of fossil fuel this time cause the unbalance of energy utility between north and south countries, this cannot separate from the scheme of fuel fossil domination by some large scale industries in the world, • Development movement of bio-fuel that happen now, directed to scheme in large scale through industries in large scale as well. This condition has showed that the energy problem in the world (unbalanced use of energy between the rich and the poor) will keep happening.

11. Recommendations • The alteration/change consumption of energy is the first step that should be carried out to counter the energy extinction and emission elimination • There is a problem and serious consequence (environmental and social) as the impact of palm oil development in large scale and fats also biofuel, so north country (Europe) must execute the sources of energy that available in north country (Europe) maximally ((rapeseed, wind power, other potential crops etc) • The utility improvement of biofuel must be based on alteration effort structure domination and usefulness of energy world. Not only in context national scale among countries, but also can provide the independent/self regulating energy trough biofuel and biomass.

12. The way forward • Roundtable on Sustainable Palm Oil (RSPO) Vision of RSPO : Ensures palm oil contributes to a better world • Sawit Watch Bottom Line for RSPO Principles & Criteria : • No burning for oil palm plating and replanting • Respect for customary rights • Companies must respect ratified international laws • No violence in any related oil palm plantation development • No certificates for plantations where lands are legitimately contested • No conversion of primary forest and HCVs ecosystems • Adherence to the principle of free, prior and informed consent

13. Thanks You