Palm Oil Company Pays Indonesian Tribe $0.65/Hectare For Forests Worth $5,000/Hectare
A palm oil company has paid indigenous Moi landowners in Indonesian Papua a paltry $0.65 per hectare for land that will be worth $5,000 a hectare once cultivated, according to a new report by the Environmental Investigation Agency (EIA) and Indonesian NGO, Telepak. The report outlines similar disadvantageous deals in timber with the same companies breaking their promises of bringing education and infrastructure.
"Papuans, some of the poorest citizens in Indonesia, are being utterly exploited in legally questionable oil palm land deals that provide huge financial opportunities for international investors at the expense of the people and forests of West Papua," said Jago Wadley, EIA Senior Forest Campaigner, in a press release.
During investigations in 2009, the EIA and Telepak interviewed the Moi tribe about their interactions with palm oil producer PT Henrison Inti Persada (PT HIP). Although the tribe never received a copy of the contract, the EIA was able to secure a hand-written contract for the 1,420 hectares of forest.
"Highly one-sided negotiations were characterized by persuasion and pressure from company staff backed by local government officials and, at times, intimidation from military and police," the report reads. "Landowners unanimously reported they had initially agreed to release large areas following up-front cash offers, but also largely due to company promises of benefits such as new houses, vehicles, and free education for their children." Yet, the tribe was paid over 7,000 times less than the company expected to profit, and the promises of a better life never materialized.
EDIT
http://news.mongabay.com/2012/0523-hance-eia-exploitation.html
