R.E.A. Holdings has proposed a new development plan for its concession that covers an area of 5,159.83 ha located inside its operational area in PT Prasetia Utama (PT PU) management unit. The plantation properties are located in the Umaq Dian Village, Muara Pedohon Village, Buluqsen Village, Muara Ritan Village, Ritan Baru Village, Tabang Sub District, Kutai Kartanegara Regency, East Kalimantan Province, Indonesia.
The NPP verification for PT Prasetia Utama was conducted through document verification and on-site visit. PT SGS Indonesia auditors conducted a preliminary document review on 13 to 14 April 2022 and the on-site verification on 24 to 27 April 2022.
The summary report of this area is now undergoing a 30-day public comments period as required by the RSPO New Planting Procedure 2021 from 2 August 2022 until 31 August 2022.
R.E.A Holdings – PT Prasetia Utama (PT PU)
Community of Desa Buluq Sen
Date of Comment :
8 August 2022
Nature of Comment :
Exclusion of an area from the Cultivation Rights (Hak Guna Usaha, HGU).
Comment Summary :
- PT Prasetia Utama was reminded to demonstrate compliance to Indonesia’s national laws and observe the social and cultural rights of the community.
- The community requested for 1,115.35 ha to be excluded from the company’s total area of 9,097.35 ha in its HGU.
- The community requested for further socialisation to explain the company’s obligations to and rights of the community in Desa Buluq Sen.
Response from Grower :
PT Prasetia Utama conducted a meeting on 10 September 2022 with the village head and representatives of Desa Buluq Sen and the following was communicated, agreed upon and verified by SGS Indonesia:
- All relevant national legal requirements have been met and the company has identified social and environmental impacts, HCV & HCS areas, and applied FPIC principles in its operational activities prior to the NPP submission.
- The company had never received any request for exclusion of the 1,115.35 ha from its HGU and conveyed that any changes must follow the applicable laws and regulations since HGU is a legal product issued by the National Land Agency/BPN.
- The company and the community of Desa Buluq Sen agreed to resolve the issue through a joint consultation and will start this process in October 2022. In the meantime, the company will not proceed with land compensation and operational activities on the area proposed to be excluded from the HGU.
- The company is committed to implementing FPIC principles and will improve coordination with relevant stakeholders in every land acquisition process.
- The company will conduct further discussion on plasma and community development programmes and will inform the workforce needs and qualifications to the community of Desa Buluq Sen.
- Socialisation of the new development plan in Desa Buluq Sen was carried out in 2018 after PT Prasetia Utama was acquired by REA Kaltim Plantations. The company agreed to plan re-socialisation activities with the community of Desa Buluq Sen.
On 27 September 2022, the Secretariat provided a conditional approval for PT Prasetia Utama’s NPP. The company was instructed to inform and get acknowledgement from the new village head of Buluq Sen on the decisions made by the previous village head and update the NPP documents.
On 7 October 2022, SGS Indonesia conveyed to the Secretariat that the following has been completed by PT Prasetia Utama:
- Minutes from the 10 September 2022 meeting were presented to the new village head on 28 September 2022. On 6 October 2022, SGS conducted a verification process to confirm that the new village head understood and agreed with the company’s plans.
- All the necessary revisions have been made and the updated NPP documents were verified by SGS Indonesia and sent to the Secretariat for final review.
On 12 October 2022, the Secretariat provided approval for this NPP after concluding that all the actions taken by PT Prasetia Utama to resolve the comment and verification by SGS Indonesia are satisfactory
NPP Public Notification/Comment Status :
Comment referred to Complaints :
The comment was resolved between the grower and the community of Desa Buluq Sen and the process was verified by SGS Indonesia. The Secretariat provided approval for PT Prasetia Utama’s NPP on 12 October 2022.