Source of Report

  • News article dated February 26, 2024 published by online media.

Issues

  • On February 26, 2024, an article from majalahglobal.com titled ‘Viral PT GMM di Halsel Diduga Tidak Penuhi Hak Masyarakat Soal Hasil Kebun Plasma Disetor ke Pemda’ contained the following demands:
    1. PT Gelora Mandiri Membangun (GMM) has not fulfilled the rights of hundreds of local community members for plasma plantation results that have been produced since 2022 until now.
    2. There are allegations that the results of PT GMM’s plasma or CPO have been deposited to the South Halmahera Regional Government for the past two years in the form of profit-sharing.

Steps taken

  • PT GMM submitted a Right of Reply and Correction Letter to majalahglobal.com dated March 1, 2024 to respond to the article with the following contents:
    1. PT GMM fully rejects the content of the news that states that the company does not fulfill the rights of hundreds of local communities around the palm oil plantations for plasma plantations because it does not match the facts.
    2. PT GMM has started the process of developing plasma plantations and establishing the Gane Bersatu Cooperative as a forum for organizing the development by involving the local community as members and administrators.
    3. Regarding complaints from the local community, PT GMM is always open and prioritizes consensus, especially since PT GMM has a Grievance Mechanism for stakeholders. As of the date of this letter, no complaint has been formally submitted to the company.
    4. PT GMM continues to prioritize good governance that always adheres to applicable laws and regulations.
  • The ESG Division has formed an investigation team and is continuing further investigations into the progress of PT GMM’s plasma development.
  • The chronology of PT GMM’s plasma development includes:
    1. On January 19, 2016, PT Gelora Mandiri Membangun (PT GMM) obtained the official document ‘Peta Bidang Tanah’ from the National Land Agency (BPN RI). This document covers 8,444.60 ha of Nucleus Plantation and 1,716.33 ha of Plasma Plantation (equivalent to 20% of the Nucleus).
    2. To manage the development of the Plasma Plantation, the ‘Koperasi Primer Perkebunan Sawit Gane Bersatu’ (Gane Bersatu Cooperative) was established on February 29, 2016. The cooperative was made up of members from the communities surrounding the PT GMM area.
    3. The Gane Bersatu Cooperative has been operated actively until now, engaging in various business units such as Palm fresh fruit bunch transportation, sand trading, and construction work at PT GMM.
    4. The 1,716.33-hectare Plasma Plantation consists of two main areas: ① 855.91 ha in the Gane Luar Village Area ② 860.42 ha in Sekely Village, Kurunga Village, and Yomen Village.
    5. When PT GMM planned to build the plasma plantation, the Gane Luar Village community rejected the construction of the 855.91 ha Plasma Plantation in 2015. Consequently, this area was designated as a Conservation area (HCV/HCS).
    6. Only a portion (±209 ha) of the 860.42 ha Plasma Area in Sekely Village, Kurunga Village, and Yomen Village has been acquired and planted with palm oil by PT GMM. The remaining area is still under community control and has not been handed over for plasma plantation development.
    7. The currently planted area of ± 209 ha is in the process of obtaining the HGU Decree for Plasma Plantation under the name of Gane Bersatu Cooperative.
    8. PT GMM is actively seeking additional new areas to increase the plasma plantation. Discussions with the South Halmahera Regional Government are ongoing, although challenges remain due to the status of the Non APL area.
    9. With PT GMM’s CPO Plant in operation since 2021 and positive prospects for oil palm plantations, the local community began to take the initiative to hand over their land to the Gane Bersatu Cooperative and request that the land be built an oil palm plantation.
    10. Then PT GMM, together with the Cooperative, conducted an inventory and measurement of the new Prospective Plasma Site (Calon Lokasi Plasma), resulting in a total measurement to date of 982 ha.
    11. Following the measurement, field verification, and social validation activities were carried out with landowners through Free, Prior, and Informed Consent (FPIC) processes by AZ-Law.
    12. Furthermore, with the consent of the community, the Plasma plantation will be built by the Gane Bersatu Cooperative.
  • FPIC process was conducted by the Team of Az Law Office and Conflict Resolution Center from March 26 to May 6, 2024. Its purpose was the social verification and validation of the plan to develop plasma plantations for the communities around PT GMM.
    1. The FPIC process was conducted in villages located around the PT GMM area, including Yomen Village, Sekely Village, Yamli Village, Gane Dalam Village, Gane Luar Village, and Awis Village.
    2. During the FPIC process, 70% of the customary rights owners were successfully verified.
    3. The remaining 30% could not be verified due to various reasons, such as absence of customary rights owners, land sales, and the village owned land needed discussion with the village administration. PT GMM’s Community Support Team will continue the verification process.
    4. The FPIC results revealed that many communities are willing to allocate their land for plasma.
    5. Furthermore, Focus Group Discussions(FGDs) will be held with the community, the cooperative, and the South Halmahera Regional Government to determine the stages of plasma plantation development.

Result

  • PT GMM has established the ‘Koperasi Primer Perkebunan Sawit Gane Bersatu’ (Gane Bersatu Cooperative) in 2016, since then the community of Gane Luar Village has rejected the development of oil palm plantations.
  • PT GMM will support the plasma activities of the Gane Bersatu Cooperative.