Summary of contract

• Negotiation, representation, and other relevant context

  The purpose of the agreement is to settle a land conflict between the community of Senujuh village and Wilmar Sambas Plantation occurred as a result of the coconut palm plantation by Wilmar Sambas Plantation in the Senujuh village territory. Wilmar Sambas Plantation apologizes for their land clearing without the community’s consent and the parties agree to settle the conflict (Art. 1). The community of Senujuh village is represented by the spokesman of the negotiation team, Jamani Saroji, who acts on the name of the government and community of Senujuh village -Sejangkung sub-district (preamble). A participatory mapping of the disputed area was developed previously to this agreement and accepted by the parties (Art. 2). The Senujuh village accepts that Wilmar Sambas Plantation manages the land that is already planted with coconut palm for 35 years to be a core plantation, and Wilmar Sambas Plantation is permitted to utilize the land for only one production period of 25 years after which Senujuh village must take over the land utilization. After the 25 years, the parties can renegotiate. The 35 years management and the 25 years utilization began in July 2007 (Art. 3). Wilmar Samba Plantation will return a land clearing of 86,039 hectares to the Senujuh village for its management. Based on the letter of agreement between the parties (April 2008), and the participatory mapping, Wilmar Samba Plantation cannot expand its plantation in other area of the Senujuh village without the collective consent of the community (Art. 4).

• Governance, implementation, dispute resolution

  The Senujuh village Community and Wilmar Sambas Plantation agree to settle the disputes arising on the implementation of the agreement through arbitration (Art. 11.1). If one of the parties does not comply with the arbitral decision, the other party may report it to the police (Art. 11.2). 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. 11.4). The costs of dispute resolution will be covered by the defaulting party (Art. 11.5). 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. 10.2). The external monitoring and evaluation will be implemented by an independent team appointed by the parties, once a quarter or as needed. Cost of external monitoring is borne by the parties and institutions participating in the monitoring (Art. 10.3). Wilmar Sambas will help Senujuh village to settle a land conflict over a land in Northern West of Tenggiling that has been cleared by Wilmar Sambas but it is inside of SAM Co. concession (Art. 6). The parties, through participatory mapping, will delineate borders of land for the core plantation and the community’s plantation. Wilmar Sambas will facilitate the mapping activities, and Senujuh village community and other eyes witnesses should see the implementation the participatory mapping. The Senujuh village community will not sign the agreement of land utilization until Wilmar Sambas pays all compensations (Art. 8). Article 7 of the agreement contains the names of the people from the Senujuh village in the compensation team and in the community plantation managment team.

• Fiscal obligations: content

  Wilmar Sambas Plantation will pay a livelihood lost compensation to the Senujuh village community amounting IDR 800,000 per each hectare of the land intended in the agreement, or totally amounting IDR 185,120,000 (Art. 5.1). Wilmar Sambas will pay this compensation through a team of members from the Senujuh village (Art. 9.1). The compensation will be paid to the Senujuh village community no later than November 2008 (Art. 9.2). Wilmar Sambas Plantation will pay to the Senujuh village community a land compensation for the land covered with the plantation amounting IDR 300,000 per hectare, or totally amounting IDR 30,166,200 (Art. 4.2).

• Community development obligations: Other

  Wilmar Sambas Plantation and the Senujuh village agree that 30 hectares of planted land will be used for a community’s coconut palm plantation. That plantation will be managed during the first 5 years for Wilmar Sambas Plantation in order to ensure quality standards but if it produces harvest it will be the property of the community. The expenditures and activities during the 5 years of development of the community’s plantation will be agreed with the Senujuh village community. The Senujuh village community, assisted by Wilmar Sambas Plantation, will take a credit to cover the expenditures of the community's plantation during the first 5 years. The Senujuh village community will take over the plantation management after the first 5 years (Art. 3.3). Based on the participatory map, the land clearing of 86,000 will be returned to the Senujuh village and Wilmar Samba Plantation cannot expand its plantation without the collective consent of the community (Art. 4).

• Transparency or confidentiality

  The agreement will be registered before public notaries at the expenses of Wilmar Sambas Plantation (Art. 12).