Failing governance - Avoiding responsibilities

The report details a systemic failure of governance in Ketapang District, West Kalimantan, where oil palm expansion—driven by EU biofuel targets—has led to widespread illegal land clearing, deforestation of protected forests, and severe social conflicts. It highlights that the Ketapang government issued permits for approximately 40% of the district's land in just three years, often bypassing legal requirements for Environmental Impact Assessments (EIAs) and forestland release approvals. The document argues that voluntary certification schemes like the RSPO and the EU's Renewable Energy Directive (RED) are insufficient to prevent these abuses, as they lack rigorous legality checks and fail to address 'replacement effects' where certified oil is diverted to energy, pushing the food sector toward unsustainable sources. Socially, the expansion has resulted in land grabs from indigenous communities and precarious labor conditions, including the non-payment of smallholders and chemical poisoning of workers.

• The Ketapang District government rapidly expanded oil palm licensing, issuing permits covering approximately 40% of the district's total land area within three years, totaling around 90 permits for 1.4 million hectares.
• A 'fast track' licensing process is being used in Ketapang that bypasses national legal requirements, allowing companies to move from a Survey Permit to a Location Permit in as little as six weeks, often before securing necessary Environmental Impact Assessments (EIAs) or forestland release letters.
• Environmental oversight is severely lacking; in 2008, only 17 out of approximately 90 oil palm companies in Ketapang had an approved EIA report, and the district lacked a Commission to review such reports.
• Significant encroachment into protected forests is occurring, with 39 oil palm companies holding concessions that overlap with nearly 400,000 hectares of protected forestland without required release letters from the Ministry of Forestry.
• Illegal forest conversion in Ketapang has resulted in a loss of state revenue, with an estimated US$ 150 million in forestry taxes remaining unpaid by companies operating in protected forestlands.
• Oil palm expansion has triggered severe social conflicts, including land grabs from indigenous peoples and the failure of smallholder schemes; by the end of 2008, at least 20 major land conflicts had surfaced.
• Smallholders and workers face extreme economic and physical risks, exemplified by 40,000 villagers in 2009 protesting unpaid palm oil supplies and reports of 37 workers being poisoned by chemicals at a joint venture plantation.
• The RSPO certification process is ineffective in Ketapang; while RSPO members control over 600,000 hectares in the district, not a single hectare has been certified as meeting RSPO standards.
• EU biofuel policies, specifically the Renewable Energy Directive (RED), are identified as a primary driver of unsustainable expansion because they do not require companies to demonstrate the legality of imports.
• The 'replacement effect' undermines sustainability efforts, as the use of certified palm oil for biofuels forces the food sector to source palm oil from other, potentially unsustainable, areas.

APA

Friends of the Earth International (2009). Failing governance - Avoiding responsibilities. https://www.foei.org/wp-content/uploads/2020/12/Biomassa_Failing-governance-avoiding-responsibilities_september2009.pdf

Chicago

Friends of the Earth International. Failing governance - Avoiding responsibilities. 2009. https://www.foei.org/wp-content/uploads/2020/12/Biomassa_Failing-governance-avoiding-responsibilities_september2009.pdf.

Wikipedia

{{cite report |author=Friends of the Earth International |title=Failing governance - Avoiding responsibilities |date=September 2009 |url=https://www.foei.org/wp-content/uploads/2020/12/Biomassa_Failing-governance-avoiding-responsibilities_september2009.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{friendsoftheearthinternational2009failing, author = {{Friends of the Earth International}}, title = {{Failing governance - Avoiding responsibilities}}, institution = {Friends of the Earth International}, year = {2009}, month = sep, url = {https://www.foei.org/wp-content/uploads/2020/12/Biomassa_Failing-governance-avoiding-responsibilities_september2009.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }