23 May 2012:
Papuans Paid a Pittance
For Palm Oil Land, Investigation Says
A major palm oil company has paid indigenous residents of Indonesian Papua $0.65 per hectare for forested land that will be worth $5,000 a hectare once cultivated
, according to a report by the
Environmental Investigation Agency
(EIA). The EIA said that Moi indigenous landowners agreed to the land sale — at a price 7,000 times less than the land will eventually be worth — after pressure from company representatives and local officials and after being told they would receive new housing and free education for their children. But the Moi said these promises were never kept,
and that only a few children were offered the chance to study at a polytechnic school in Java for three years — and only under the condition that the students return and work for seven years for the palm oil company, PT Henrison Inti Persada (PT HIP). The Noble Group, a global commodities trading giant, has a majority stake in PT HIP. The Norwegian government, which has been funding programs to reduce deforestation, has invested nearly $50 million in Noble Group through Norway’s sovereign wealth fund, EIA says.
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