Allegations of an unrestricted and exploitative land grab in Papua to develop a biofuels industry have been made by the Environmental Investigation Agency (EIA) in a report, 'Up for Grabs: Deforestation and Exploitation in Papua's Plantations Boom ' published yesterday (10th October).  The, self styled, Agency alleges that there are moves by large companies to target five million hectares of land in the region, most of which they say is forested, to develop a biofuels industry and that it is is provoking conflicts with local communities.

In a statement the EIA said that field investigations carried out by EIA/Telapak at seven locations in Papua and West Papua Provinces during 2009 reveal a stark picture of government condoned exploitation of traditional landowners, many of whom are being enticed, tricked and sometimes coerced into releasing large swathes of forested land for plantations on the basis of unfulfilled promises of development benefits such as improved transport, schooling, and housing.

The report alleges widespread dissatisfaction among local communities persuaded to release land for conversion to oil palm plantations. The rate of compensation encountered is shockingly low – the best price paid was $45 per hectare for a 35-year lease, while the worst rate was $1.5 per hectare. EIA/Telapak also found companies clearing forest for plantations illegally before the necessary permits had been obtained, with full government knowledge.

Hapsoro of Telapak said: "Companies are tricking Papuans into giving up their land for oil palm plantations based on empty promises about their future welfare. This is all happening with the backing of the government in the name of development."

The plantations boom in Papua is being driven by a raft of government policies promoting the development of biofuels, explained the EIA, principally oil palm, yet management of the sector is chaotic and non-transparent. The government intends to expand the area under oil palm cultivation from six million hectares to 20 million hectares.

The EIA says that as well as attracting major Indonesian companies, the lure of cheap land for plantations, coupled with substantial amounts of valuable timber from clearing forests, overseas investors are moving into Papua. EIA/Telapak uncovered a Hong Kong-based company registered in an offshore tax haven obtaining over 300,000 hectares of heavily forested land in southern Papua. In its publicity the company claims it will "improve" the forest by felling 200,000 hectares and replacing it with oil palm to supply biofuels to industrialised countries seeking to reduce carbon emissions.

EIA/Telapak is calling for the Indonesian government to suspend any further award of plantation licenses in Papua until strong safeguards to support the rights of local communities and protect forests are put in place. It is also calling for the international community to address the role played by consumption of plantation commodities and timber as a key driver of deforestation.

The report can be downloaded here .