Sawit Watch. X Ordinary. Retailers. Banks and investors

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1 RSPO Annual Communication of Progress 1. Profile Name of the organisation: Membership type (tick one only): Sawit Watch X Ordinary Affiliate Membership category (tick one only): Oil palm growers Palm oil processors and traders Consumer goods manufacturers Retailers Banks and investors Environmental/nature conservation organisations (NGOs) Operational structure of the organisation: X Social/development organisations (NGOs) Responsible Contact(s) Primary contact for questions, feedback: Name: Norman Jiwan Address: Jl. Sempur Kaler No. 28 Bogor Senior representative, authorising commitments: Person submitting progress report: Financial contact for membership fee: Telephone: norman@sawitwatch.or.id Abetnego Tarigan, Executive Director, Member of the RSPO Executive Board Norman Jiwan, Head of Department, Social and Environmental Risk Mitigation Initiatives Vinna Saprina Mulianti, Finance Manager Reporting Period: August 2009 to August 2010 Date of Report: 30/08/10 1

2 2. Details of Progress A. Analysis and Strategy for Sustainable Palm Oil 1. High-level strategic view of the organisation's relation to sustainable palm oil and related longer term objective. - Commitment of the entire supply chain is the key to achieve the ultimate use and procurement of sustainable palm oil become solution for all. Sawit Watch has intensively worked and will continue to support the implementation of SPO principles are translated into evident upstream practices, visible supply chain supports, and apparent improvements for smallholders, workers, local communities and indigenous peoples. - Sawit Watch believes that increased SPO production is possible without compromising rights and livelihoods of legitimate stakeholders, affected peoples and other vulnerable groups. - Sawit Watch seeks to promote RSPO s best practices leverage on state s policies 2. Time bound plan with milestones/targets. Sawit Watch continues to support Task Force on Smallholders (TFS) which is expected to produce RSPO guidance for smallholders by Sawit Watch continues to involve in the RSPO GHG WG2 for robust consideration and endorsement of the RSPO greenhouse gas standards by Sawit Watch continues to support direct and effective participation of smallholders, workers, local communities and indigenous peoples in RSPO process by 2010 at the next RT8 conference. 3. Targets for the next reporting period. Sawit Watch supports the continuation of Task Force on Smallholder (TFS 2) to move from paper work to field works with smallholders. Sawit Watch will support the establishment of mechanism to ensure mandatory reporting on progressive realisation of workers normative conditions and basic rights. Sawit Watch supports mechanism to ensure credible time bound commitment to share costs and implications of certification and verification of sustainable palm oil production for schemed and independent smallholders. 4. Statement from the organisation's senior representative. Sawit Watch endeavours to enable evident sustainable palm oil production works for smallholders, workers, local communities and indigenous peoples, Abetnego Tarigan, Executive Director, Social NGO RSPO EB members B. Progress made in producing, procuring and/or utilizing sustainable palm oil Stakeholder dialog and works to promote sustainable palm oil during September 2009, Forest Peoples Programme, HuMA, WildAsia and Sawit Watch carried out investigation on high conservation value implementation problems in Indonesia - November 2009, Forest Peoples Programme & Sawit Watch organised the Task Force on Smallholder meeting prior to RT7 conference, Kuala Lumpur - November 2009, during RT7, Sawit Watch facilitated side meeting for representatives of local 2

3 community, indigenous peoples, smallholders, and worker with Neste Oil; IOI on land, social and environmental concerns in Sabah and Ketapang; United Plantations on land issues; IFC/World Bank on policy review; Wilmar on supply chain issues; Sime Darby on land and labour issues; and HSBC and Rabobank on community concerns with their palm oil clients. - November 2009, during RT7 Dr. Marcus Colchester of investigating team presented the investigation findings at the workshop held by RSPO and High Conservation Value Resource Network (HCVRN); February 2010, Forest Peoples Programme & Sawit Watch organised RSPO Task Force on Smallholder Steering Group meeting Denpasar, Bali March 2010, Forest Peoples Programme and Sawit Watch convened the first physical meeting of the RSPO Ad Hoc Working Group on High Conservation Values in Indonesia; - 24 June 2010, Forest Peoples Programme and Sawit Watch convened the first physical meeting of the RSPO Ad Hoc Working Group on High Conservation Values in Indonesia; Sawit Watch facilitated the Working Group meeting with the National Land Agency (BPN), Directorate of Estate Crops (Dirjenbun), and National Spatial Planning (KIMPRASWIL) May 2010, Sawit Watch attended the RSPO GHG WG2 physical meeting - 4 July 2010, Sawit Watch presented Free, Prior and Informed Consent and the New Planting Procedure at the RSPO Public Forum in Medan July 2010, Sawit Watch organised RSPO educational training programme for NGO activists from Medan, Jambi, West Kalimantan and Central Kalimantan. The materials are the introduction of RSPO system, principles and criteria, and complaint mechanism July 2010, Sawit Watch, Friends of the Earth Indonesia (WALHI), the Malaysian Sahabat Alam Malaysia (SAM) and Consumers Association of Penang (CAP) to have a workshop meeting with the Indonesia national human rights commission (KOMNAS HAM) on the promotion of human rights and responsible investment and operations in palm oil industry. 3

4 C. Challenges 1. Significant economic, social or environmental obstacles encountered in production, procurement and/or use of sustainable palm oil and efforts made to mitigate or resolve them. Challenges towards sustainability As an association of individuals representing indigenous peoples, smallholders, and social NGOs activists, Sawit Watch evaluates and observes that the following key policies are critical to sustainability of the palm oil industry: (1) Respect for international laws (2.1); submission to the Elimination of all forms of Racial Discrimination (CERD) committee by Sawit Watch and 10 other submitting organisations with regard to controversial mega oil palm border project; Sawit Watch and other concerned NGOs organised some dialog meetings with government institutions including further follow up with the National Human Rights Commission in (2) No new plantings replace primary forest and other high ecosystem values including high carbon stocks (7.3); Sawit Watch supports the establishment, consideration and endorsement further implementation of the credible RSPO new plantings procedure in place by January 2010 (3) Adherence to the principle of free, prior and informed consent in dealings with local communities (2.3, 7.5&7.6); IFC suspends palm oil investments before comprehensive palm oil investment strategy is in place. Sawit Watch and other complainant NGOs take part in providing critical inputs for the draft strategy of the World Bank Group in (4) Respect for customary rights; Sawit Watch supports mutual and direct communication between indigenous peoples and RSPO members to address relevant disrespectful cases in some operations where fake representatives, tactics of divide and rule and misuse of customary laws. (5) Establishment of open and mutually acceptable mechanisms for the resolution of disputes over contested lands; Sawit Watch continues to facilitate local communities and indigenous peoples to have mutual and direct dialog with RSPO producer members in conflict resolutions such as with HSBC, Rabobank, UP, IOI, Neste Oil, Sime Darby. (6) Commitment to zero burning; Sawit Watch takes part in NGO discussions to support the Indonesia government to reduce greenhouse gas emissions. (7) No violence in the development of oil palm estates; Sawit Watch promotes the non-violence approach and involves in conflict resolutions. However this reporting period ( ), Sawit Watch documented more and frequent cases related to land disputes led to detention and criminalisations against community members. If RSPO member allegedly involved in cases Sawit Watch tried to communicate the issues directly to the member concerned for steps towards solutions. (8) Gender equity; there has been concern that RSPO has lack of gender analysis including gender perspective in the sustainability and certification; Sawit Watch works to mainstream gender justice in the RSPO process through promoting gender analysis and gender affirmative models actions. (9) Respect for workers rights: increased fuels price and dropped CPO price in the market severely affect pays and conditions in plantation to meet decent living wages. 2. Suggestions on how the RSPO can assist your organisation s sustainability performance. RSPO should encourage, facilitate and monitor members proactively to address the above mentioned challenges in their time-bound plans for sustainable palm oil implementation. In addition RSPO should continue to provide greater support and meaningful participation for smallholders in sustainable palm oil production. 3. Suggestions on how your organisation can assist RSPO s overall progress. Sawit Watch and Oxfam International are currently developing Upscaling Sustainable Palm Oil 4

5 Porgramme that elaborates key elements of sustainable palm oil including gender programme, livelihoods and land uses, dispute settlement, plantation workers, capacity building for smallholders, yield improvements, etc. The programme is expected to contribute to an increased understanding and usages of RSPO by affected communities, indigenous peoples, smallholders, workers and stakeholders in the palm oil industry. 5