Summary of contract

• Negotiation, representation, and other relevant context

  The purpose of the agreement is to settle a land conflict between the Sajingan Kecil Hamlet community - Semanga Village and Agronusa Investama occurred as a result of the oil palm plantation by Agronusa Investama on the territory of Sajingan Kecil Hamlet (Art. 1). The Sajingan Kecil Hamlet Community accepts that Agronusa Investama uses for 35 years the land that is already planted with oil palm and after the 35 years the parties can renegotiate (Art. 3). The Sajingan Kecil Hamlet Community is represented by the spokesman of the negotiation team (preamble).

• Governance, implementation, dispute resolution

  The Sajingan Kecil Hamlet Community and Agronusa Investama agree to develop a participatory re-mapping of the land in dispute to mark the forest, the land clearing and the oil palm planted, no later than 31 January, 2009 (Art. 6). The Sajingan Kecil Hamlet Community and Agronusa Investama agree to settle the disputes arising on the implementation of the agreement through arbitration (Art. 9.1). If one of the parties does not comply with the arbitral decision, the other party may report it to the police (Art. 9.3). If the defaulting party does not comply with the enforcement order of the police, the other party may take the claim to a Court (Art. 9.4). The costs of dispute resolution will be covered by the defaulting party (Art. 9.5). The internal monitoring and evaluation of the agreement will be implemented by the parties together and will be conducted at least once per month (Art. 8.2). The external monitoring and evaluation will be implemented by an independent team once a quarter or as needed. Cost of external monitoring are borne by the parties and institutions participating in the monitoring (Art. 8.3).

• Fiscal obligations: content

  Agronusa Investama will pay to the Sajingan Kecil Hamlet community IDR 300.000 per each hectare of oil palm plantation (Art. 4.1). Agronusa will pay this compensation through a team of members from the Sajingan Kecil Hamlet (Art. 5.1). The compensation will be paid to the Sajingan Kecil Hamlet community members two weeks after the re-mapping of the area (Art. 7.2). Agronusa Investama will pay to the Sajingan Kecil Hamlet community IDR 40.000.000 per year during the 5 years of development of the Sajingan Kecil smallholders’ oil palm plantation (Art. 4.2). The head and government institutions of the Sajingan Kecil Hamlet community should give the community the plan to be financed with the compensation for the development of the plantation (Art. 5.3). Agronusa Investama will pay the logistic and transportation needed during the participatory re-mapping of the land (Art. 6.1).

• Community development obligations: Infrastructure and social services

  Agronusa Investama is obliged to assist the socio-economic development of the Sajingan Kecil Hamlet community according to its needs, e.g. with the oil palm plantation management, social activities, household economic development (Art. 4.3).

• Community development obligations: Other

  Agronusa Investama and the Sajingan Kecil Hamlet - Semanga Village agree that the existing areas of land clearing will be used for a smallholders’ oil palm plantation of the Sajingan Kecil Hamlet community. That plantation will be managed during the first 5 years for Agronusa Investama in order to ensure quality standards. The expenditures and activities during the 5 years of development of the community’s plantation will be agreed with the Sajingan Kecil Hamlet community. The smallholders of the Sajingan Kecil Hamlet community, assisted by Agronusa Investama, will take a credit to cover the expenditures of the community's plantation during the first 5 years. The Sajingan Kecil Hamlet community will take over the plantation management after the first 5 years (Art. 3.3).

• Environmental and social protection

  Agronusa Investama and the Sajingan Kecil Hamlet - Semanga Village agree that the land covered with forest will be managed by the Sajingan Kecil community as a forest reservation and if there was deforestation, Agronusa Investama is obliged to reforest (Art. 3.1). Agronusa Investama agrees to replace with plantation land the clearing land that the Sajingan Kecil Hamlet community cannot use for plantation purposes due to environmental protection restrictions (Art. 3.3). Agronusa Investama will not extend its plantation to other areas inside the territory of the Sajingan Kecil Hamlet - Semanga Village (Art. 2.2). If there is disagreement between the Sajingan Kecil Hamlet Community and Agronusa Investama about whether an area is classified as land clearing or as environmental protected, Agronusa will pay the costs of a technical decision (Art. 3.c).

• Transparency or confidentiality

  The agreement will be registered before public notaries at the expenses of Agronusa Investama (Art. 10.2).

• Other noteworthy clauses

  The article is translated from Indonesian to English. The translation is not official and sometimes difficult to understand.