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IFC and the World Bank Involve Multi Stakeholders to Promote Sustainable Oil Palm Sector


In Jakarta:
Novita Wund, IFC
Phone: (+62) 8118400438
E-mail: NWund@ifc.org

In Washington, D.C.:

Irina Likhachova, IFC
Phone: (+1) 202 473 1813
E-mail: ILikhachova@ifc.org

Indonesia, May 18, 2010 — IFC and the World Bank held consultations with multiple stakeholders in Indonesia in Medan, Pontianak, and Jakarta May 3-7, 2010, as part of a broad global consultative process to develop the World Bank Group Palm Oil Strategy. 140 participants from civil society organizations, affected communities, large and smallholder producers, government, and researchers took part in the consultations.  

“IFC and the World Bank seek to promote sustainable practices in the sector that will benefit the poor and preserve forests, biodiversity and forest communities,” said Adam Sack, IFC Indonesia Country Manager. “The challenges in the sector are vast and require coordinated efforts by multiple stakeholders. The current consultative process is a beginning of what we hope to become an on-going dialogue and partnership with a range of stakeholders as we work together towards common objectives,” he added.  

The participants of the consultations in Indonesia expressed support for the World Bank Group’s continued engagement in the palm oil sector alongside other partners seeking to promote solutions to move the sector to sustainable footing. Social and governance issues in the palm oil sector dominated the discussions, focusing on land use, land disputes, unified and transparent laws and regulations as well as their effective enforcement.

Others issues discussed included giving fair economic opportunities for smallholder producers, preserving natural resources, and protecting the rights of indigenous communities. There was an overall consensus on the need to support smallholder producers through increased access to finance, better inputs and production practices, and improved contractual relations with larger companies.

Attendees from civil society groups included Sawit Watch, Greenpeace, Setara Foundation, Borneo Child Aid Society, and Tenaganita. Representatives from the private sector included Sinar Mas, Bank Mandiri, Rea Kaltim, Musim Mas and Wilmar. Researchers from CIFOR, Zoological Society of London and Indonesian Palm Oil Palm Research Institution among others participated in the consultations. The National Planning and Development Agency (BAPPENAS), Ministry of Agriculture and Ministry of Trade officials, representatives from the Indonesian Plantations Association (IPA), Indonesian Palm Oil Association (IPOA) and Malaysian Palm Oil Association also attended.

The consultations in Indonesia are a part of a global outreach by the Word Bank Group to seek input into developing its global strategy of future engagement in the palm oil sector. Until this strategy is in place, the World Bank Group is refraining from developing new projects in the sector. Consultations with multiple stakeholders have been held in Washington DC, USA and in San Jose, Costa Rica. Further consultations are being planned in Accra, Ghana and Amsterdam, the Netherlands. For further information about the World Bank Group multi stakeholder palm oil strategy development process, please visit: www.ifc.org/palmoilstrategy