IFC and the World Bank Involve Multi Stakeholders to Promote Sustainable Palm Oil Sector

Antara News, Wednesday, May 19, 2010 18:46 WIB

Jakarta, Indonesia, May 18, 2010 (ANTARA) -- IFC and the World Bank held consultations with multiple stakeholders in Indonesia in Medan, Pontianak, and Jakarta May 3-7, 2010, as part of a broad global consultative process to develop the World Bank Group Palm Oil Strategy. 140 participants from civil society organizations, affected communities, large and smallholder producers, goverment, and researchers took part in the consultations.

"IFC and the World Bank seek to promote sustainable practices in the sector that will benefit the poor and preserve forests, biodiversity and forest communities," said Adam Sack, IFC Indonesia Country Manager. "The challenges in the sector are vast and require coordinated efforts by multiple stakeholders. The current consultative process is a beginning of what we hope to become an on-going dialogue and partnership with a range of stakeholders as we work together towards common objectives," he added.

The participants of the consultations in Indonesia expressed support for the World Bank Group's continued engagement in the palm oil sector alongside other partners seeking to promote solutions to move the sector to sustainable footing. Social and governance issues in the palm oil sector dominated the discussions, focusing on land use, land disputes, unified and transparent laws and regulations as well as their effective enforcement.

Other issues discussed included giving fair economic opportunities for smallholder producers, preserving natural resources, and protecting the rights of indigenous communities. There was an overall consensus on the need to support smallholder producers through increased access to finance, better inputs and production practices, and improved contractual relations with larger companies.

Attendees from civil society groups included Sawit Watch, Greenpeace, Setara Foundation, Borneo Child Aid Society, and Tenaganita. Representatives from the private sector included Sinar Mas, Bank Mandiri, Rea Kaltim, Musim Mas dan Wilmar. Researchers from CIFOR, Zoological Society of London and Indonesian Palm Oil Palm Research Institution among others participated in the consultations. The National Planning and Development Agency (BAPPENAS), Ministry of Agriculture and Ministry of Trade officials, representatives from the Indonesian Plantations Association (IPA), Indonesian Palm Oil Association (IPOA) and Malaysian Palm Oil Association also attended.

The consultations in Indonesia are a part of a global outreach by the World Bank Group to seek input into developing its global strategy of future engagement in the palm oil sector. Until this strategy is in place, the World Bank Group is refraining from developing new projects in the sector. Consultations with multiple stakeholders have been held in Washington DC, USA and in San Jose, Costa Rica. Further consultations are being planned in Accra, Ghana and Amsterdam, Netherlands. For further information about the World Bank Group multi stakeholder palm oil strategy development process, please visit: www.ifc.org/palmoilstrategy

For further information, please contact:

In Jakarta:

Novita Wund, IFC
Phone: (+62) 8118400438
E-mail: NWund@ifc.org

In Washington, D.C.:

Irina Likhachova, IFC
Phone: (+1) 202 473 1813
E-mail: ILikhachova@ifc.org

Nestle Shows its Sweet Side to Greenpeace, Sinar Mas in Indonesian Palm Oil Fight

Jakarta Globe, Faisal Maliki Baskoro, May 17, 2010

An activist wearing an orangutan mask protesting at Nestle’s Jakarta offices. Nestle dropped Sinar Mas as a supplier amid Greenpeace accusations that the palm oil producer was contributing to deforestation. (EPA Photo)

Nestle sent mixed signals on Monday regarding its intentions on palm oil, garnering praise from both Greenpeace and one of the environmental group’s frequent targets, Sinar Mas Group.

Nestle, the world’s biggest food group, announced that it was committed to stop using products that contributed to the destruction of rainforests, and to that end had entered a partnership with The Forest Trust environmental group, which helps companies establish responsible supply chains.

This comes after a months-long social media campaign by Greenpeace highlighting Nestle’s purchase of crude palm oil from Sinar Mas Group, which Greenpeace accuses of destruction of rainforests and peatlands to make way for plantations. The allegations prompted Nestle to drop Sinar Mas as a supplier in March.

Pat Venditti, head of the Greenpeace International Forest Campaign, praised Nestle.

“Nestle’s move sends a clear message to Sinar Mas and to the rest of the palm oil and paper industries that rainforest destruction is not acceptable in the global marketplace. They need to clean up their act and move to implement a moratorium on rainforest destruction and full peatland protection.

“Greenpeace will closely monitor and push for the rapid implementation of Nestle’s plan,” Venditti said in a statement.

However, Bloomberg and Agence France-Presse reported on the same day that a Nestle executive at a seminar on palm oil and deforestation in Kuala Lumpur said the company might resume buying palm oil from PT Sinar Mas Agro Resources and Technology if an “independent” audit shows Greenpeace’s allegations are baseless.

Nestle executive vice president Jose Lopez was quoted by Bloomberg as saying that “if Sinar Mas, or anybody else, does a proper job on quality, on traceability, on having a transparent supply chain, of course we will buy from them .... After this whole audit is completed, we will make the right decision at that time.”

However, Lopez also said the company was concerned with criticism over deforestation.

In April, Sinar Mas Group appointed two bodies, Control Union Certification and the BSI Group, to assess Greenpeace’s claims. However, Greenpeace has questioned the neutrality of the groups, which have been approved by the Roundtable on Sustainable Palm Oil, a trade body of producers and buyers.

Bustar Maitar, of Greenpeace Southeast Asia, on Monday said The Forest Trust was a neutral organization, but questioned the impartiality of Sinar Mas’s self-appointed auditing teams.

“We suspected that Sinar Mas’s assessment might be biased and not transparent. If Nestle continues to buy from Sinar Mas it will only prove that our suspicions were true,” he said. “If Nestle decides that our evidence is baseless, we will continue to press on and won’t stop campaigning.”

He said that if Greenpeace’s evidence of deforestation was proven, then Nestle had no choice but to sever all ties with Sinar Mas.

Fajar Reksoprodjo, corporate communications director at Sinar Mas, said it appreciated Nestle’s professionalism and looked forward to doing business again after a clear and independent assessment was announced.

“Everyone should wait for the assessment report for an accurate and legitimate information,” he said, adding that the report was expected to be completed around July.

Achmad Manggabarani, director general of plantation crops at the Agriculture Ministry, said the Greenpeace campaign was controlled by foreign interests.

“Foreign countries saw palm oil as having the potential to trigger climate change, but so far there hasn’t been accurate research that proves that.”

Additional reporting by Ardian Wibisono, Arti Ekawati & Budi Otmansyah

New bat, gecko, pigeon identified in Papua

Yenni Djahidin, The Jakarta Post, Washington, D.C | Mon, 05/17/2010 9:23 AM

Almost two years after ending their expedition to one of the most remote areas in the world, a group of scientists announced Saturday that it has identified a variety of new species, including a Pinocchio-like frog with a long nose, a dwarf wallaby, and several new insects in the Foja Mountains of Indonesia’s Papua province.

New species: (clockwise, from top left) The Imperial pigeon, tree mouse, gecko, blossom bat, long-nose tree frog and dwarf walla: Courtesy of Tim Laman/National Geographic and Neville Kemp

One of the scientists, Bruce Beehler, told The Jakarta Post that they have had to wait this long until the participating field scientists have determined what species the animals belonged to. The process, he explained, can take weeks, months, years and even decades.

“For many of the insects, scientists will probably be describing new species from the Foja Mountains a decade from now because they need to do comparative work to be able to safely describe one new species,” said Beehler, a senior research scientist at the Washington-based Conservation International.

The frog has a protuberance on its nose that points upward when the male is calling, but depletes and points downward when he is less active. It was found by herpetologist Paul Oliver, who spotted the frog sitting on a bag of rice in the campsite.

The 2008 expedition was conducted by international and Indonesian scientists participating in Conservation International’s Rapid Assessment Program. Financial and scientific support for the exhibition came from the National Geographic Society, Smithsonian Institution and the Indonesian Institute of Sciences.

The scientists discovered an oversized wooly rat, a gargoyle-like gecko with bent toes and yellow eyes, an imperial pigeon, and a tiny forest wallaby. They said the wallaby is the smallest member of the kangaroo family documented in the world.

They also found a blossom bat, which feeds on rainforest nectar, a small tree-mouse, a black and white butterfly, and a flowering shrub.

The biggest surprise, according to the announcement, was a sighting of a pair of new imperial pigeons by ornithologist Neville Kemp. It said the pigeon had feathers that appeared rusty, whitish and gray.

The Foja Mountains are part of the Indonesian National Wildlife Sanctuary. However, Beehler hoped that the Indonesian government will consider changing the status of the area to a national park to raise more attention and resources.

“We would also hope that Governor Barnabas Suebu continues to provide strong green leadership in the development of Papua’s wonderful forests and wild lands,” he said.

He said that the biggest threats to the pristine area are road-building and large-scale plantation development, which could open up the Foja Mountains to future degradation.

“It is important for people to know how precious the Foja Mountains area is and how many wonderful species of plants and animals live there and no other place on earth,” he said.

A special feature on the expedition, “Discovery in the Foja Mountains,” appears in the June issue of the National Geographic magazine.

The announcement on Saturday was to mark the 2010 International Day for Biological Diversity. It said that world governments failed to meet the targets agreed to in 2002 to reduce the rate of loss of biodiversity by 2010. In October, the international community will meet in Japan to discuss new targets for the next 40 years.

“While animals and plants are being wiped out across the globe at a pace never seen in millions of years, the discovery of these absolutely incredible forms of life is much needed, positive news,” Beehler said in the statement.

He said places like the Foja Mountains show that it is not too late to stop the current species extinction crisis.

“The societies that preserve their natural resources will be the ones that will have the best quality of life in the future,” said Dr. Beehler.

Soros okays RI proposal on special climate agency

Hasyim Widhiarto, The Jakarta Post, Jakarta | Mon, 05/10/2010 9:02 PM

President Susilo Bambang Yudhoyono meeting with George Soros at the Presidential Office in Jakarta on Monday. Soros was in Indonesia in his role as a member of a UN advisory group that aims to mobilize funding promised at last year’s Copenhagen climate change talks. (AFP Photo/Bay Ismoyo)

UN climate adviser George Soros has endorsed Indonesia's proposal to establish a special local agency responsible for managing international aid the country needs to tackle climate change.

Indonesia's Forestry Minister Zulkifli Hasan after accompanying President Susilo Bambang Yudhoyono in a meeting with Soros at the presidential office on Monday that the agency would be headed by Kuntoro Mangkusubroto, currently chief of the Presidential Unit for Development Monitoring and Control.

"We've had this idea of forming a special agency here, headed by Pak Kuntoro, who will manage international funds flowing into the country," Zulkifli said.

"The agency will manage domestic and international funds and conduct monitoring, reporting and verification -- MRV activities of agreed projects.

"Yes, he (Soros) agrees with the proposal. We hope we can immediately set up the agency," he added.

In a press conference after the one-hour meeting with Yudhoyono, George did not mention the agency. He only said the UN Secretary General's High-level Advisory Group on Climate Change Financing, in which he is a member, was raising international funds to support Indonesia's efforts to cope with climate change.

"Clearly by protecting the forests and particularly the peat areas, Indonesia has to bear some opportunity costs and doing it benefits the entire world," Soros said.

"Therefore there is a very strong case for providing international supports both in the form of loans but more importantly in the form of grants."

Related Article:

SBY Talks Climate Change With Soros

Nature loss 'to damage economies'

BBC News, by Richard Black, Environment correspondent, 7:27 GMT, Monday, 10 May 2010 8:27 UK

The abundance of mammals, birds, reptiles and other creatures is falling rapidly

The Earth's ongoing nature losses may soon begin to hit national economies, a major UN report has warned.

The third Global Biodiversity Outlook (GBO-3) says that some ecosystems may soon reach "tipping points" where they rapidly become less useful to humanity.

Such tipping points could include rapid dieback of forest, algal takeover of watercourses and mass coral reef death.

Last month, scientists confirmed that governments would not meet their target of curbing biodiversity loss by 2010.

"The news is not good," said Ahmed Djoglaf, executive secretary of the UN Convention on Biological Diversity (CBD).

"We continue to lose biodiversity at a rate never before seen in history - extinction rates may be up to 1,000 times higher than the historical background rate."

The global abundance of vertebrates - the group that includes mammals, reptiles, birds, amphibians and fish - fell by about one-third between 1970 and 2006, the UN says.

Seeing red

The 2010 target of significantly curbing the global rate of biodiversity loss was agreed at the Johannesburg summit in 2002.

It has been clear for a while that it would not be met.

But GBO-3 concludes that none of the 21 subsidiary targets set at the same time are being met either, at least not on a global basis.

These include measures such as curbing the rate of habitat loss and degradation, protecting at least 10% of the Earth's ecological regions, controlling the spread of invasive species and making sure that international trade does not take any species towards extinction.

No government submitting reports to the convention on biodiversity group claims to have completely met the 2010 target.

While progress is being made in some regions, the global failure means an ever-growing number of species are on the Red List of Threatened Species.

"Twenty-one percent of all known mammals, 30% of all known amphibians, 12% of all known birds (and)... 27% of reef-building corals assessed... are threatened with extinction," said Bill Jackson, deputy director general of the International Union for the Conservation of Nature (IUCN), which maintains the Red List.

"If the world made equivalent losses in share prices, there would be a rapid response and widespread panic."

Costing the Earth

The relationship between nature loss and economic harm is much more than just figurative, the UN believes.

An ongoing project known as The Economics of Ecosystems and Biodiversity (TEEB) is attempting to quantify the monetary value of various services that nature provides for us, such as purifying water and air, protecting coasts from storms and maintaining wildlife for ecotourism.

Loss of coral reefs will reduce humanity's supply of seafood

The rationale is that when such services disappear or are degraded, they have to be replaced out of society's coffers.

TEEB has already calculated the annual loss of forests at $2-5 trillion, dwarfing costs of the banking crisis.

"Many economies remain blind to the huge value of the diversity of animals, plants and other lifeforms and their role in healthy and functioning ecosystems," said Achim Steiner, executive director of the UN Environment Programme (Unep).

"Humanity has fabricated the illusion that somehow we can get by without biodiversity, or that it is somehow peripheral to our contemporary world: the truth is we need it more than ever on a planet of six billion heading to over nine billion people by 2050."

The more that ecosystems become degraded, the UN says, the greater the risk that they will be pushed "over the edge" into a new stable state of much less utility to humankind.

For example, freshwater systems polluted with excess agricultural fertiliser will suffocate with algae, killing off fish and making water unfit for human consumption.

The launch of GBO-3 comes as governments begin two weeks of talks in Nairobi aimed at formulating new measures to tackle global biodiversity loss that can be adopted at October's Convention on Biological Diversity summit in Japan.

WHAT IS BIODIVERSITY?

• UN defines biodiversity as "the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems"
• Considered to provide value to humanity in four ways:
• Provisioning - providing timber, fish, etc
• Regulating - disposing of pollutants, regulating rainfall
• Cultural - sacred sites, tourism, enjoyment of countryside
• Supporting - maintaining soils and plant growth

Gotcha

The Jakarta Post | Sun, 05/09/2010 3:50 PM

Gotcha: Forest rangers arrest local hunter Tarikat (right) red-handed carrying tiger skin and bones in Bengkulu. The suspect admitted Saturday to killing the protected Sumatran tiger in Tunggang village. – Antara/Hendri

Magnitude 7.4 earthquake rattles western Indonesia

The Washington Post, The Associated Press, Sunday, May 9, 2010; 3:05 AM

JAKARTA, Indonesia -- An earthquake with a preliminary magnitude of 7.4 rattled Indonesia's North Sumatra province Sunday, prompting a local tsunami watch, knocking out power and damaging some homes, officials said.

The U.S. Geological Survey said the afternoon quake hit 135 miles (220 kilometers) southeast of Banda Aceh at a depth at 38 miles (61 kilometers). Indonesia and the Pacific Tsunami Warning Center in Honolulu issued a tsunami watch for the area.

The Pacific Tsunami Warning Center watch said there was no threat of a widespread tsunami, but "there is the possibility of a local tsunami that could affect coasts located usually no more than a hundred kilometers from the earthquake epicenter."

Fauzi, chief of Indonesia's meteorology agency, said the closest town to the epicenter was Meulaboh, but there are not yet reports from there. Like many Indonesians, Fauzi uses only one name.

Riswan, local government secretary on Simeulue island, said the quake damaged some houses and caused a power outage, but phones were still working.

Local media reports said the quake caused panic in many parts of Aceh and neighboring North Sumatra province.

Indonesia rests on a series of fault lines that make the archipelago nation one of the most world's most earthquake-prone. A quake last year killed more than 1,000 people on Sumatra. Another off Indonesia's coast caused the 2004 Indian Ocean tsunami that killed 230,000.

It's not a drill: Residents sit on the back of a truck outside their homes as they prepare to flee after an earthquake in Banda Aceh on Sumatra on Sunday. A magnitude 7.4 earthquake rattled North Sumatra province on Sunday, prompting a brief tsunami alert, knocking out power and damaging some homes, officials said. AP/Heri Juanda

Related Article:

Major Quake Strikes Off Aceh Coast

Magnitude 7.2 - NORTHERN SUMATRA, INDONESIA

Govt ready to facilitate Greenpeace case

Antara News, Saturday, May 8, 2010 13:21 WIB

Jakarta (ANTARA News) - The agriculture ministry is ready to facilitate a meeting between Greenpeace and PT Sinar Mas Agro Resources & Technology Tbk. (PT SMART) to clarify issue on environmental destruction by oil palm plantations.

Bayu Krisnamurthi, deputy agriculture minister, said here, Friday, that in a meeting between Greenpeace activists and Agriculture Minister Suswono on Friday, the international environmental NGO said it did not oppose the oil palm plantations in Indonesia.

"They are not against oil palm, but against deforestation activities. They are also against illegal logging activities," Bayu Krisnamurthi said.

Greenpeace also opposed the conversion of peat land which was not in accordance with the government`s regulations, he said.

The deputy minister said Greenpeace in the meeting with the agriculture minister, proposed that oilpalm plantations should be opened in barren land used to be forest area, he said.

Greenpeace Southeast Asia campaigner Bustar Maitar said Indoensia has one of the fastest rates of forest destruction on the planet, with palm oil and pulp and paper plantations being major causes. As a result, it is now the world`s third largest greenhouse gas emitter, after China and the United States.

To avert catastrophic climate change, he called for an end to deforestation and, to begin with, the government must declare an immediate moratorium on destroying Indonesia`s rainforests and carbon-rich peatlands, he said.

President Susilo Bambang Yudhoyono has an ideal foundation to implement his commitment expressed during the Copenhagen Climate Change Summit, to forest protection in order to reduce gas emissions, he said.

Greenpeace has recommended an establishment of a global funds to stop deforestation in countries such as Indonesia an Brazil, by requesting advanced countries to invest US$45 billion annually for forest protection.

2010 Indonesia Earthquake – 8 May 6.1 Quake Shakes Indonesia Today

CNN WORLD, by Pradeep Kolla ,May 8th, 2010

2010 Indonesia Earthquake – 8 May 6.1 Quake Shakes Indonesia Today. This just in: The USGS has indicated that a 5.7 earthquake has hit Indonesia. This isn’t the first time this year that this has happened in that area. This time, it appears as if the area is lucky – there haven’t been any reports of damage or casualties.

So far within the last couple of hours, Indonesia has experienced a 6.1 earthquake near Nusa Tenggara Barat Province which is populated with some 3.6 million people.

Other indonesian quakes today include a 5.0 and a 5.6 quake.

Indonesia sits on a dangerous and very techtonic area called the Pacific Rim of Fire. There are more earthquakes in this area than in other areas in the Pacific Rim.

For more information about the Indonesian earthquake, head to usgs.gov (click link to go)

Environment Watch: Villagers want legal protection for forest

The Jakarta Post, Jon Afrizal, Jambi | Fri, 05/07/2010 10:14 AM

People from Marga Bukit Bulan in Jambi are seeking legal guarantees in the form of a regional law to protect their forest as the source of their livelihood.

The Marga Bukit Bulan community is made up of residents in five villages in Limun district, Sarolangun regency: Lubuk Bedorong, Mersip, Napal Melintang, Berkun and Meribung.

The valley area is dominated by hills and intact tracts of forest that serve as water catchment areas.

Because the forest is indispensable for residents, it is classified a traditional forest. There are 12 tracts of traditional forest encompassing the five villages with a total area of 1,488 hectares.

Villagers use water from the forest for daily household needs and to irrigate rice fields.

The District Development Program (PPK) set up a micro-hydro power station a few years to generate electricity for Napal Melintang villagers using the water from upstream forest areas, which is dammed and redirected to micro-hydro generator turbines to produce 30,000 watts of power.

The power is distributed to residents’ homes, where 110 of the 135 families now have electricity.

Each family is charged Rp 5,000 (about 50 US cents) per month for every 10-watt lamp. The money generated is used for public works, such as repairing the mosque.

Village head Yanto praised the electricity generation project, saying it “freed the villagers from darkness”.

“We are optimizing the use of water in our daily lives,” he said.

Villagers also use the rivers to breed fish.

The larvae are kept in a deep pool in a stream at Lubuk Bedorong village. Sarolangun regency administration says 10,000 larvae could yield hundreds of kilograms of fish twice a year.

With the Marga Bukit Bulan community becoming increasingly dependent on the forest, community development specialist Dendi Satria Buana sees the need for legal guarantee to protect the forest.

The status of the traditional forest has only been recognized through a village decree, which Dendi claims is not enough.

“We must push for the establishment of a legal framework to protect the traditional forest,” he said, adding the forest served a hydrological function by providing clean water that could be used by the community. With clear legal protection, the water source will be preserved and the forest will remain intact and pristine, he said.

Sarolangun Regent Hasan Basri Agus said his concern for the villagers’ welfare led him to push for a regency bylaw pending the issuance of a provincial ordinance on traditional forests.

Water from the upstream areas is dammed and redirected to micro-hydro generator turbines to produce 30,000 watts of power.

Decimated

The Jakarta Post, Antara, Thu, 05/06/2010 1:03 PM

Residents help clear the rubble from a house that collapsed after a flash flood hit Gembleb village in Trenggalek, East Java, on Wednesday night. Four people were killed and two treated for severe injuries in the disaster that destroyed three houses and damaged scores of others. Antara/Arief Priyono

Earthquake strikes off Indonesian coast

Reuters, JAKARTA, Wed May 5, 2010 1:27pm EDT

A magnitude 6.3 earthquake struck off the coast of Sumatra in Indonesia Wednesday, the U.S. Geological Survey said, near an area devastated by the 2004 Indian Ocean tsunami.

The Pacific Tsunami Warning Center said there was no threat of a destructive, widespread tsunami although there was a small possibility of a local tsunami near the area of the quake.

The quake, which was earlier reported to be of 6.6. magnitude, occurred at 11:29 p.m. local time (1629 GMT) and was centered about 137 km (85 miles) southwest of Bengkulu, the USGS said. The depth was 18 km (11 miles).

There were no immediate reports of damage or injuries.

"What we know is that it was felt in the area," Subagyo (eds: full name), from the Bureau of Meteorology's earthquake monitoring center, told Reuters.

"We have not had any reports of building damage or injuries but we are waiting for more reports from the field."

(Reporting by Paul Simao and Sunanda Creagh; Editing by Nick Macfie)

Related Article:

Bengkulu jolted by magnitude-6.3 earthquake

Unilever unit says Indonesia remains key palm oil supplier

Reuters, Wed May 5, 2010 9:09am EDT

JAKARTA, May 5 (Reuters) - The Indonesian unit of Unilever (ULVR.L) (UNc.AS), the world's top palm oil buyer, on Wednesday said it gets 65 percent of its palm oil from Indonesia despite halting purchases from a unit of market leader Sinar Mas Group.

Unilever, which uses palm oil in such products as Dove soap and Ben & Jerry ice cream, cancelled its annual 20 million pound ($30.27 million) contract with one of its Indonesian suppliers, PT SMART (SMAR.JK) in December. SMART is part of Sinar Mas Group, Indonesia's biggest palm oil producer.

The move prompted speculation that Unilever might cut palm oil purchases from other Indonesian suppliers, but a spokeswoman for the company said it was still buying from Indonesia.

"About 65 percent of palm oil bought by Unilever worldwide comes from Indonesia. We only stopped buying from SMART but we are still buying from other Indonesian suppliers," said Maria Dewantini Dwianto, a spokeswoman for PT Unilever Indonesia (UNVR.JK).

SMART had shipped some palm oil cargoes up to April to fulfil an agreement made ahead of Unilever's decision to stop purchasing from SMART, Dwianto added.

Other palm oil suppliers in Indonesia include Musim Mas and an Indonesia unit of Singapore-listed Wilmar (WLIL.SI), she added.

Unilever consumes about 1.9 million tonnes of palm oil each year -- of which about four-fifths comes from Indonesia and Malaysia -- and has pledged to buy only from certified sustainable plantations from 2015.

Greenpeace has alleged that Sinar Mas, Indonesia's biggest palm oil producer and the second-biggest in the world, has been responsible for widespread deforestation and peatland clearance, practices which release vast amounts of carbon dioxide.

PT SMART and PT Unilever Indonesia agreed to appoint two independent auditors -- Netherlands-based Control Union Certification (CUC) and British Standard institute -- last month to investigate the environmental allegations.

SMART's president director, Daud Dharsono, has said that the independent auditors would complete their study by the end of June.

The allegations by Greenpeace prompted Nestle (NESN.VX) to stop buying palm oil from Sinar Mas, while agribusiness giant Cargill Inc [CARG.UL] has also threatened to remove Sinar Mas as a palm oil supplier. ($1=.6606 Pound) (Reporting by Telly Nathalia; Editing by Yoko Nishikawa and Sara Webb)

Govt allocates Rp 600b to forest rehabilitation

The Jakarta Post, Jakarta | Wed, 05/05/2010 7:58 PM

Forestry Minister Zulkifli Hasan said Wednesday the government had allocated Rp 600 billion (US$66million) in budget to forest rehabilitation program by planting a total of 1 billion tree seeds across the country in the upcoming one year.

“We are obliged to rehabilitate forest days and nights if necessary,” Zulkifli said during his work trip to Pasuruan, East Java, as quoted by tempointeraktif.com.

Zulkifli said the government would work with residents around the forest to carry out the rehabilitation

program. Each group of residents responsible for the rehabilition program would receive a minimum fund of Rp 50 million, he added.

Mining companies asked to prioritize conservation

Antara News, Tuesday, May 4, 2010 01:50 WIB

Ambon (ANTARA News) - Maluku deputy governor Said Assagaff had asked the mining companies operating in the province to prioritize environmental conservation during explorations and exploitations of minerals.

"Conservation is a precondition for companies building the mining and energy sector prioritizing integration, conservation, and biodiversity," he said when opening a Maluku mining and energy exhibition in Ambon on Monday.

He also said that the mining and energy sector is a leading resource of Maluku province, as its mineral resources were very big and had yet to be adequately exploited and processed for the welfare of the local population.

According to official data, the coal mines in Maluku are located in Seram island, covering Tehoru, Elpaputi, Banggoi and Wahai, and the limestone deposits are found in South Buru and West Seram, natural oil in 10 sediments in East Seram, and the renewable hydro and geothermal energy resources are adequate for building hydropower plants (PLTAs) in Seram island to generate 217.4 megawatts (MW).

He said business prospects for national or regional private companies recommendations are for C-category minerals for industries and for oil, gas and coal are expected to be used under cooperation with foreign investors to serve the welfare of the local population.

In addition, the Maluku provincial administration is also seriously considering the environmental impact analysis (AMDAL) and the social obligations of investors to the people living near the location of explorations, he said.

He also said that the Mining and Energy Expo 2010 will demonstrate the potentials of the natural resources in the thousand islands.

"The expo will also inform the people of the natural resoources of Maluku, and provides a means for the selection of potential foreign and domestic investors. The expo will also invite investors to inspect and consider the mining and energy investment potentials in Maluku," he said.

The Maluku Ming and Energy Expo 2010 also held on the occasion of Sail Banda 2010 with a number of mining companies taking part like PT Batu Tua Kharisma Permai/PT Batu Tua Tembaga Raya, PT Maluku Global Masindo, PT Manusela Prima Mining, PT Belirang Kalisari, PT Gemala Borneo Utama, PT Masindo Putera Energy and PT Satria Fajar Intim.

Mt. Baru in West Nusa Tenggara erupts

The Jakarta Post, Jakarta | Sun, 05/02/2010 9:41 AM

In the middle of the lake formed a Little Mountain named Mount Baru Jari at 2376 meters above sea level. (Discovery Indonesia)

Mount Baru, also known as Child of Rinjani, in West Nusa Tenggara erupted again last week, forcing authorities to continue the ban on climbing activities on the Rinjani peak and Segara Anak Lake.

On Friday, the 2,376-meter-high mountain erupted four times, spewing gases up to 1,600 meters to the north.

On Sunday, there was an earthquake near the mountain, kompas.com reported.

Authorities are still allowing climbing activities near Pelawangan.

(www.rinjaninationalpark.com)

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Assam tea estate goes organic

BBC News, Gossainbarie, Assam, By Subir Bhaumik

Production at Gossainbarie tea estate has gone up since it started using organic manure

Visitors making their way along the muddy track leading to the Gossainbarie tea estate in India's north-eastern Assam state will be greeted by huge mounds of cow dung, rotting water hyacinth, as well as and fish and meat waste.

But this is no cause for alarm - the tea-estate has gone organic and is following the principles of India's ancient plant medicine Vriksh Ayurveda.

"This is our fertiliser because we don't use any chemical ones in our gardens," says Gossainbarie's owner Binod Saharia.

He has enlisted the help of a hermit-like bearded figure - former management consultant Swami Valmiki Iyengara.

Mr Iyengara says he has studied Vriksh Ayurveda, a system of traditional medicine, and evolved a concept of organic farming that is both sustainable and profitable.

"All pollutants are useful wastes and we can convert most of them into organic manure," he says.

"The ancient Indian plant medicine details processes for creating organic fertiliser from virtually anything.

"Much as poisons like mercury are used in traditional Indian medicine, pollutants diluted with other materials produce the best fertiliser," he adds.

Half of India's tea output comes from Assam

Water hyacinth, cow dung and cow urine have long been used as manure.

But Mr Iyengara has also developed organic manure from fish waste, "charasuda" (butcher house waste), "indsafari" (small fish) and the "bhasmas" (made from herbs and metals).

"We have enough organic fertilisers for a few planting seasons," he says.

Mr Iyengara and Mr Saharia say they have almost perfected the practice of organic farming.

They believe this could clean up India's - and Assam's - rural environment, which has been polluted by high use of insecticides, pest repellent and highly toxic chemical fertilisers.

Environmentalists argue these are penetrating the food chain and threatening the health of millions.

'Ailing estate' rescued

Going organic can also boost the market price of Indian tea and open up new niche markets.

These are factors that can help the country's tea industry overcome the high production costs caused by rising wages and expensive chemical fertilisers.

When Mr Saharia took over the ailing Gossainbarie tea estate from Assamese planter Mohammed Arfanulla early last year, the 140-year-old tea estate was waiting for someone to turn it around.

Locally available water hyacinth is also used to make manure

The estate's annual output had plummeted from its peak 900,000 kg of green leaves to 355,000 kg a year.

One year on and things are looking up - the estate is poised to produce 600,000 kg.

Mr Saharia says he now wants other Indian tea planters to adopt his technology.

"We have no trade secrets. We want the whole of Indian tea industry to go organic all the way.

"In many estates, lazy managers routinely use chemical fertilisers even after the soil has gone dead. We want them to be creative."

'Unique experience'

Inderjit Singh Oberoi, a retired soldier-turned-manager, has worked for estates much bigger than Gossainbarie, but he joined up six months ago to gain experience.

"The concept being tried out here is unique and I want to be part of it," he says. "This could save Indian tea and get it niche buyers."

India's tea industry is burdened with rising costs of production and falling prices.

Cows are a useful income supplement for the labourers

Rampant use of chemical fertilisers and adulteration have denied Indian tea access to health conscious European markets.

India produced 981m kg of tea in 2009 - almost a quarter of the world's total tea output. Nearly 200m kg were exported.

Half of India's tea output - nearly 450m kg - comes from Assam's 800-odd tea estates.

Mr Saharia and Mr Iyengara say they encourage labourers at the estate to keep cows and collect waste.

That way, they are never short of raw material for organic fertiliser and also "it is an income supplement for the poor labourers".

Some Indian tea planters, such as Swaraj Banerji of the famous Makaibari tea estate, in the Darjeeling Hills of West Bengal state, turned organic long ago.

The Makaibari estate pioneered the practice of motivating tea labourer families to keep cows and supply the dung and urine to the estate.

"But we have shown the way for all tea planters to go organic on a sustainable basis because we can develop organic fertilisers from virtually all kinds of locally available material," Mr Saharia says.

'Reservations'

Mr Iyengara has also used his knowledge of modern management to develop a system by which fewer labourers are needed to apply the organic manure, over a wider area and in less time.

"Labour costs are the biggest overhead in Indian tea production and they make our teas less competitive in global markets," he says.

"But we have found a way to cut down hugely on labour costs by saving up on manure application time."

Mr Oberoi says he had "reservations" about the organic tea cultivation until he joined Gossainbarie.

"Now I know that the ancient plant medicine and the modern management concepts can work magic," he says.