Planned plantations may cause losses

Anissa S. Febrina, The Jakarta Post, Jakarta

The government's plan to establish the world's largest area of oil palm plantations, which would also serve as a buffer zone, along the border between Indonesia and Malaysia on Borneo island will in fact lead to economic losses, an environmentalist group says.

"If the government carries on with the plan to fell tropical forests there and give the land over to plantations, it will badly affect the local economy," Greenomics Indonesia executive director Elfian Effendi said on Wednesday.

The non-governmental organization estimates that potential losses in the long run could reach Rp 27 trillion (US$2.7 billion) annually due to environmental degradation.

According to documents obtained from a consortium of state plantation firms -- PT Perkebunan Nusantara No. I to XIV -- that have been obtained by Greenomics, there is a plan to convert 1.8 million hectares of land to oil palm plantations.

The planting of one million hectares would be funded by Chinese investors and would be located in West Kalimantan, while the remaining 800,000 hectares would be located in East Kalimantan.

The overall cost of the project would amount to some US$8 billion.

"The planned plantation would decrease the quality of ecological support and lead to economic losses in the agricultural, trade, industry and transportation sectors," Elfian said.

He added that communications would be badly affected as people and industry in the area were highly dependent on river transportation. "If rivers are degraded because of the plantation scheme, people would have difficulties moving their goods."

The problem would later affect trade and industry.

"The conversion of the land will also trigger natural disasters in the future. If this happens, the local budget that was originally allocated for the development will have to be reallocated to repair the damage," he added.

Of 2.3 million hectares of plantation in West Kalimantan, some 1.5 million hectares have been abandoned. Greenomics has suggested that the abandoned land be revitalized instead of converting conservation areas.