Source of Report

  • Pusaka Foundation news article regarding the HGU issue of PT Dongin Prabhawa, the oil palm giant in South Papua (August 31, 2023)

Issues

  • On August 29, 2023, the Marind tribe from the Samkakai clan conducted “Palang Adat“, a customary sanction on PT Dongin Prabhawa, because the Samkakai clan suspected that the company had planted outside the HGU boundary.

Steps taken

  • On September 4, 2023, TSE Group’s ESG Division formed an investigation team and conducts further investigations regarding the complaint filed.
  • The chronology with the Samkakai clan includes the following:
    • On August 29, 2023, the Samkakai, Ndiwaen Haikai, Kaize, and Mahuze Tagaepe clans blockaded PT DP’s Division 12 office and demanded:
      1. An explanation from PT DP for cutting down oil palms in Block 1-21 and Block 1-22 area and not handing over the area to the clans living around Division 12 to manage it by themselves.
      2. The employment of Leonardus Samkakai as a harvesting team leader.
      3. Money and customary problem-solving.
      4. If the problem was not resolved, they would extend the blockage to Division 11.
    • From August 29 to September 1, 2023, several meetings were held between PT DP and the clans’ representatives, with the following points:
      1. The company explained that they could not fulfill the request for hiring Leonardus Samkakai as a harvesting team leader because there were enough team leaders at the moment.
      2. The company also explained that:
        1. PT DP initially built the oil palm plantation in accordance with the HGU boundary set by the National Land Agency (BPN) in 2013. The company then planted at Division 12 in 2015.
        2. PT DP has always committed to comply with Indonesian regulations, but there was a planting area, 2.2 ha in size, which exceeded the HGU’s boundary in Block 1-21 and Block 1-22. It was discovered by the company during the mapping survey using drones in 2022. Due to this incident, PT DP held discussions with several parties, and decided to cut down oil palms that exceeded the boundaries in July 2023. The planting area was expected to regrow as a forest.
      3. Representatives of the 4 clans shared the results of an agreement made by the customary communities: a demand for payment of symbolic money (uang atribut adat) in cash.
      4. Based on the clans’ demands, PT DP proposed alternative solutions to the issue by giving symbolic money or the employment of Leonardus Samkakai as a tree management team leader.
      5. On September 1, 2023, PT DP along with the Samkakai, Ndiwaen Haikai, Kaize, and Mahuze Tagaepe clans agreed to resolve the issue peacefully and signed an agreement letter in which the clans agreed to receive symbolic money of IDR 100,000,000 (one hundred million rupiahs) from PT DP.
    • PT DP has conducted thorough inspections related to the HGU boundary and will report the results to relevant institutions in accordance with the regulations.

Result

  • Based on the agreement letter, the complaint of the four clans was resolved and the company reported the boundary issue to the relevant institutions.