Planned plantations may cause losses

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.