FAP Agri- PT Karangjuang Hijau Lestari and PT Bulungan Hijau Perkasa – popup

We received the Forest Peoples Programme report titled First Resources’ Shadow Hangs over the Dayak Agabag, published in November 2022.

The report indicates that PT Karangjuang Hijau Lestari (PT KHL) and PT Bulungan Hijau Perkasa (PT BHP) have taken over the ancestral lands of Dayak Agabag Community in North Kalimantan, Indonesia, without prior consultation with the affected communities.

In addition, both companies were accused of employing criminalization and intimidation strategies to coerce community members to drop their complaints. Several community members were arrested for alleged theft of FFBs from the company’s concession.

We engaged with FAP Agri to clarify the allegations.

01 February 2023
The result of the engagement with FAP Agri is as follows:

The summary of clarifications is as follows:

1. Plasma partnership with the communities in PT KHL and PT BHP started in 2003 and 2015, respectively.
2. The plasma partnership in PT BHP is still ongoing to complete the targeted land acquisition.
3. FAP Agri held a meeting with the Cooperation in August 2022 and December 2022. During the meeting, the mechanism of the plasma partnership cooperation was discussed and agreed upon. The agreement was signed by the stakeholders, including the local government.

16 February 2023

FAP Agri provided further clarifications as follows:

1. The accusation of criminalization against community members is not true.
2. The individuals who were reported to the Nunukan Police were because of their involvement in theft and land encroachment, and not as an act of intimidation. The land the individuals had stolen and encroached upon had previously already been compensated for.

FAP Agri shared a statement letter from the Customary Institution of Dayak Agabag, Sebuku Sub-District, acknowledging that:

1. PT KHL and PT BHP have been operating for a long time. During their operations, there have been no issues that cannot be resolved through positive dialogue between the company and the community.
2. The Customary Institution of Dayak Agabag Sebuku recommended using positive dialogues to settle the issues between the local individuals and the companies and to proceed with legal actions if necessary.
3. They also expect that PT KHL and PT BHP will continue to contribute positively to the community through Corporate Social Responsibility (CSR) to maintain a long-term harmonious relationship.

We received a FPP document containing a rebuttal from members of the Dayak Agabag to responses provided by FAP Agri.

1. Compensation provided by the company is done based on mutual agreement and is documented without any form of coercion.
2. FAP Agri explained that the plasma mechanism is discussed and mutually agreed upon by the company and the cooperative forum, whose members are the representatives of the communities. This discussion includes the determination of the eligible individuals to receive plasma.
3. FAP Agri consistently, through its Corporate Social Responsibility (CSR) program, continues to provide benefits to rural communities in its operational areas, and this continues to expand every year.
4. The company has undertaken an Environmental Impact Assessment and implemented a management and monitoring plan to address the anticipated impacts.

We will monitor the progress of the allegation.