French tire company Michelin’s local subsidiary, PT Lestari Asri Jaya (LAJ), has been allegedly involved in deforestation and intimidation against local farmers although the company had secured green bonds.
Indonesian Forum for the Environment (Walhi)’s Jambi chapter Chairman Abdullah said that since its operation in 2009, LAJ has been carrying out land clearing in Tebo regency, Jambi province.
“Based on our monitoring, when a company opens the land, they clear out the forest and then create a conservation areas in the concession. Since the beginning, there was no plan for conservation area,” he told Indonesia Business Post on October 28, 2022.
After the land clearing, the company then started to plant rubber trees and decided the plot for the conservation areas. LAJ has 61,000 hectares of rubber concession in Tebo regency. Based on the regulation, a plantation company must allocate a certain percentage of its concession for conservation area before planting the land.
According to Abdullah, LAJ has destroyed bio-diversity in the areas. He said in the past, there were Sialang trees (Caesalpiniaceae), which house honey bees. Honey bees have supported the livelihood of the locals for a long time. However, the trees now extinct.
“We inquired LAJ for their decision to cut down Sialang trees in the area. The woods were transported outside. However, they did not respond. They claimed they have secured permits and want to clear the trees out,” he said, adding that only a small numbers of Sialang trees are left in the village.
The land clearance has also caused big floods during the rainy seasons. “There are always inundations in the corridor road of the plantation,” he added.
The presence of the concession areas has disrupted the crossing line for Sumatran elephants. As a result, the elephants switched their crossing line to other areas.
Conflict with local community
In addition to the environmental impact, the LAJ operation has also prompted violence and intimidation against local farmers living around their concession area.
Abdullah said that since 2019, Jambi Police have summoned many farmers due to the complaints filed by LAJ.
“We accompany the local community and we explained to them that there is no need to proceed the case to the police. There must be a discussion. We can sit together to find the right solution. The local community has been living and relying their livelihood on the forest for a long time, even before the company secured the permit for concession,” he explained.
Abdullah said the government often issued a permit for companies without double checking if the land has been occupied by local community for their farming activities, schools or housings. Therefore, conflict between companies and the community often occur.
“The police’s accusation that the people have trespassed into the forest is a blunder. In Tebo, the local community has been gardening in the forest areas. Why did the police summon all the peasants? We will consolidate and request all the peasants to come into the police stations,” he said.
Green washing
LAJ is a subsidiary of PT Royal Lestari Utama, which ultimate shareholder is Michelin. In its website, the company said that it is developing an environmental and wild life friendly natural rubbers and inclusive in terms of social aspect.
The company designs the planting practice and harvest of rubber that protect and preserve and grow the forest. That was the reason why in 2018, Royal Lestari Utama become the first company in Asia that secured sustainable bond based on the International Capital Market Association’s green bond principles.
Abdullah said the green bond was a recognition that the company has well managed the forest, obeyed the permit and regulations and did not intimidate local community. In reality, they did the opposite and just recently opened a communication with the local community.
He suggested that international agency should accommodate the aspiration of the locals before granting any companies with credits and awards.
“Since Michelin is the shareholder, they should be responsible for the impact of their company’s operation in Jambi,” Abdullah concluded.
PT Lestari Asri Jaya spokesperson, Tasya, did not respond to the Indonesia Business Post’s request for comment on the allegations.
