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FOR IMMEDIATE RELEASE
October 14, 2011
12:32 PM

Oxfam Calls on Palm Oil Company to Redress Violations of Communities’ Rights in Indonesia

WASHINGTON - October 14 - Oxfam is demanding that the Malaysian multinational, Sime Darby, quickly rights wrongs at its palm tree plantation in West Kalimantan, Indonesia.

In its report Land and Power published last month, Oxfam revealed a long-standing dispute on a palm oil plantation owned by Sime Darby, which dates from before Sime Darby purchased the plantation. Despite promises since 2007, Sime Darby has yet to take action to redress the situation.

Unless Sime Darby produces a concrete action plan to resolve the issue by 23 October, Oxfam will make a formal complaint to the Roundtable on Sustainable Palm Oil (RSPO) of which Sime Darby is a member. The RSPO is a global partnership of producers, traders and brand producers who use palm oil in their products. Members of the RSPO have pledged to make palm oil production sustainable by following global standards for its production and purchasing. Oxfam is a member of the RSPO to ensure that the interests of local people, small farmers and laborers, are addressed in the production of palm oil.

Last week a complaint was lodged at the RSPO against Sime Darby by the international campaigning group, Forest Peoples Programme, together with Liberian organizations. In Liberia Sime Darby is also accused of the illegal confiscation of land from local farmers, in violation of RSPO procedures.

Farah Karimi, general director of Oxfam Novib (Netherlands) said: “It is unacceptable for palm oil companies like Sime Darby to ignore the rights and needs of local people. Members of the Roundtable on Sustainable Palm Oil are united in their recognition that something has to change in the palm oil sector. Now is the time for action.”

Oxfam has been an active member of the RSPO for seven years and helped create the complaints procedure that allows communities to complain directly about abuses. The procedure is important because many of the local authorities and legal systems in countries involved in palm oil production do not uphold communities’ rights in land disputes.

“We joined the RSPO because there was no other option for the communities to claim their rights. All RSPO members have committed to sustainable operations. It’s now time to call to account the members who violate this commitment. There is a complaints procedure and a sanctions mechanism. If Sime Darby doesn’t budge, it should feel the consequences. The affected farmers have that right,” said Karimi.

Sime Darby has stated that its aim is to resolve the case as soon as possible. Oxfam will continue to monitor Sime Darby critically, together with other members of RSPO, including an Indonesian organization, Sawit Watch, which directly supports the people in West Kalimantan.

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Oxfam International is a confederation of 13 like-minded organizations working together and with partners and allies around the world to bring about lasting change. Oxfam works directly with communities and that seeks to influence the powerful to ensure that poor people can improve their lives and livelihoods and have a say in decisions that affect them.



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