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Can palm oil help Indonesia's poor? | Can palm oil help Indonesia's poor? |
(about 6 hours later) | |
By Bill Law Food Fights, BBC Radio 4 Are these palm oil saplings on cleared rainforest a sign of hope or of doom? | |
Panorama last week reported on the disturbing destruction of orangutan habitats in Indonesia for palm oil plantations. But are there benefits from these plantations for local people? | Panorama last week reported on the disturbing destruction of orangutan habitats in Indonesia for palm oil plantations. But are there benefits from these plantations for local people? |
Environmentalists have long decried the destruction of Indonesia's rainforests, first for timber and more recently for palm oil. | Environmentalists have long decried the destruction of Indonesia's rainforests, first for timber and more recently for palm oil. |
The logging was a one-time deal that mostly benefitted the country's corrupt elite and foreign corporations. | |
But does palm oil have the potential to generate new wealth for this nation of 250 million people? | But does palm oil have the potential to generate new wealth for this nation of 250 million people? |
There is one key fact that is often overlooked in the debate. | There is one key fact that is often overlooked in the debate. |
Rural middle class | Rural middle class |
Of the more than 7 million hectares (17.2 million acres) in palm oil cultivation, nearly half is in the hands of smallholders, ordinary folk trying to better themselves and look after their families. | |
Steaven Halim is sure that productivity can be increased instead of acreage | |
"We are seeing the emergence of a rural middle class," says John McCarthy of the Australian National University. | "We are seeing the emergence of a rural middle class," says John McCarthy of the Australian National University. |
He is an economist and expert on the Indonesian palm oil industry. | |
"I was doing research in a town in Sumatra and I went to a local school and nine of the 13 teachers had oil palm plantations," he said. | |
Intrigued, Mr McCarthy carried out a survey in several villages in the region. What he found startled him. | |
Villagers with four hectares (10 acres) or more were earning on average $12,000 (£7,775) a year. A second group with 2 hectares were earning much less -$2,000 (£1,300) a year - but were still enough to provide financial security for themselves and their families. | |
Villagers without palm oil all fell below the poverty line. | Villagers without palm oil all fell below the poverty line. |
The growth of this new middle class has profound implications for both prosperity and the prospects of furthering democracy in Indonesia. | The growth of this new middle class has profound implications for both prosperity and the prospects of furthering democracy in Indonesia. |
Fairer | Fairer |
There are huge abuses. Plantations continue to be opened up that flout the laws. Corruption flourishes. Local communities are being marginalised, habitats terribly degraded. So what is the way forward? | There are huge abuses. Plantations continue to be opened up that flout the laws. Corruption flourishes. Local communities are being marginalised, habitats terribly degraded. So what is the way forward? |
In the often polarised debate about palm oil, it is rare to find converging views between activists and owners. | |
LISTEN TO THE PROGRAMME Food Fights Food Fights is on Radio 4 on Monday 1 March at 2000 GMTYou can also get it on the iPlayer | LISTEN TO THE PROGRAMME Food Fights Food Fights is on Radio 4 on Monday 1 March at 2000 GMTYou can also get it on the iPlayer |
Sawit Watch is an Indonesian NGO that has campaigned for several years on the palm oil front. | Sawit Watch is an Indonesian NGO that has campaigned for several years on the palm oil front. |
Achmad Surambo is the executive director of Sawit Watch. | |
When I meet him he is happy to make one point clear to me: palm oil in itself is not a bad thing for Indonesia. But the system needs to change. | |
Laws have to be enforced, people and the environment need to be protected, the land rights of local communities must be respected. | Laws have to be enforced, people and the environment need to be protected, the land rights of local communities must be respected. |
"We have to make the system more fair, accommodate the interests of farmers, communities and labourers," he says. | |
"The system right now is tilted toward the big companies and that has to change." | |
Increase productivity | Increase productivity |
Lyman Agro is a small plantation company managing 60,000 hectares in West Kalimantan (Borneo). | |
Steaven Halim of Lyman Agro points to the roads, schools and health clinics that have been built as proof of the company's commitment to its social responsibility. | |
class="" href="/2/hi/asia-pacific/8539467.stm">In pictures: Palm oil's impact | |
"We have also helped (smallholders) build up cooperatives so they can handle their own business," he says. | |
The government and the industry until recently talked about doubling the land area in production. | |
Sensitive to negative press about deforestation, they are now talking instead about doubling the output in 10 years from 20 million to 40 million tonnes to help meet world demand. | |
When I ask Mr Halim whether this can be achieved with existing plantations he nods vigorously. | |
"Yes, indeed. Indeed it can," he says. | |
The key for him is increasing productivity for smallholders. | |
"If we can get them to 35 tonnes a hectare per year [it now is about 20 tonnes] we can do it." | |
That is not far off what Sawit Watch wants. It has called for a moratorium on expansion, as well as more support and better treatment of farmers and labourers. | That is not far off what Sawit Watch wants. It has called for a moratorium on expansion, as well as more support and better treatment of farmers and labourers. |
Steaven Halim acknowledges there are "some bad guys, no doubt" in the industry, but that the time is now to talk. | |
"Let's sit down together and try to find the way out. People have to be fed." | "Let's sit down together and try to find the way out. People have to be fed." |
Bill Law presents Food Fights on BBC Radio 4 on Monday 1 March at 2000. You can also get it on the iPlayer . | Bill Law presents Food Fights on BBC Radio 4 on Monday 1 March at 2000. You can also get it on the iPlayer . |