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The Kalimantan Border Oil Palm Mega-project

While the rubber trees are immature, selected legume cover crops such as Pueraria phoseoloides, Culopogonium mucunoides and Centrosemu pubescens may be grown on rubber plantations. Intercropping can be carried out with coconut trees and banana plants within the rubber plantation. Sometimes banana alone is used as an intercrop. Intercropping can also be carried out with rice, longgong, mangosteen, satow, bamboo, jampada, riang, durian, pineapple, coffee trees, neem and hot pepper (ITTO, 2000). Intercropping while the rubber trees are immature can generate extra income, and make farming at the rubber plantation more intensive. The. | The Kalimantan Border Oil Palm Mega-project Commissioned by Milieudefensie - Friends of the Earth Netherlands and the Swedish Society for Nature Conservation SSNC April 2006 AIDE nvironment The Kalimantan Border Oil Palm Mega-project Commissioned by Milieudefensie - Friends of the Earth Netherlands and the Swedish Society for Nature Conservation SSNC April 2006 Eric Wakker AIDEnvironment Donker Curtiusstraat 7-523 1051 JL Amsterdam The Netherlands Telephone 31-20-5818250 Fax 31-20-6866251 E-mail wakker@aidenvironment.org Website www.aidenvironment.org Summary A few years ago the Indonesian government and sections of the palm oil industry united in the Indonesian Palm Oil Commission IPOC to undertake efforts to restore the atrocious public image that the palm oil industry had earned abroad for its role in the demise of Indonesia s tropical rainforests the massive forest fires and haze in 1997-1998 and for the widespread conflicts between plantation companies and local communities. The border oil palm mega-project If IPOC succeeded in restoring the palm oil industry s image abroad it was shattered again after June 2005 when the Indonesian Minister of Agriculture revealed details of a government plan to develop the world s largest oil palm plantation in a 5-10 kilometer band along the border of Kalimantan and Malaysia. To finance the US 567 million plantation project the Indonesian President and Chamber of Commerce and Industry KADIN had already met up with the Chinese government and private sector several times resulting in Memoranda of Understanding between among other the Artha Graha and Sinar Mas groups from Indonesia and the Chinese CITIC group and Chinese Development Bank CDB . The oil palm mega-project launched in Indonesia under the banner of bringing prosperity security and environmental protection to the Kalimantan border area turned sour when a business plan developed by the Indonesian State Plantation Corporation PTPN began to circulate. This document .