Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach

Palm oil makes a significant contribution to the economies of Indonesia and Malaysia through private corporations, state-owned companies and smallholders, with the two countries supplying 85% of the global palm oil. Indonesia has 14 million hectares (ha) of oil palm; its palm oil exports were valued...

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Autores principales: Purnomo, H., Okarda, B., Dermawan, A., Ilham, Q.P., Pacheco, P., Nurfatriani, F., Suhendang, E.
Formato: Journal Article
Lenguaje:Inglés
Publicado: Elsevier 2020
Materias:
Acceso en línea:https://hdl.handle.net/10568/112321
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author Purnomo, H.
Okarda, B.
Dermawan, A.
Ilham, Q.P.
Pacheco, P.
Nurfatriani, F.
Suhendang, E.
author_browse Dermawan, A.
Ilham, Q.P.
Nurfatriani, F.
Okarda, B.
Pacheco, P.
Purnomo, H.
Suhendang, E.
author_facet Purnomo, H.
Okarda, B.
Dermawan, A.
Ilham, Q.P.
Pacheco, P.
Nurfatriani, F.
Suhendang, E.
author_sort Purnomo, H.
collection Repository of Agricultural Research Outputs (CGSpace)
description Palm oil makes a significant contribution to the economies of Indonesia and Malaysia through private corporations, state-owned companies and smallholders, with the two countries supplying 85% of the global palm oil. Indonesia has 14 million hectares (ha) of oil palm; its palm oil exports were valued at USD 23 billion in 2017 and USD 21 billion in 2018. Both domestic and international communities, particularly the European Union (EU), have raised concerns about its sustainability and impact on forest conservation. For example, the European Parliament in 2017 issued a resolution to restrict the ability of EU countries to count palm oil-based biodiesel imports toward their renewable 2030 energy targets. This paper describes palm oil value chains in Indonesia at the national level, using value chain analysis and system dynamics modeling. The model is used to understand how the moratorium, peatland conservation, agrarian reform, and the EU biodiesel ban affect plantation expansion and production, employment, CO2 emissions, smallholder incomes, the private sector, and government. The model provides scenarios to make Indonesian palm oil more sustainable through intensification, no-deforestation, and no-peat strategies, as well as through land swapping. There are trade-offs between economic development and environmental conservation, but win-win solutions are available. Scenarios that build synergies between Indonesian palm oil development and forest conservation can help guide the new frontiers of oil palm development in Asia, South America, and Africa.
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spelling CGSpace1123212025-12-08T09:54:28Z Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach Purnomo, H. Okarda, B. Dermawan, A. Ilham, Q.P. Pacheco, P. Nurfatriani, F. Suhendang, E. oil palms supply chain conservation sustainable development small scale farming biodiesel Palm oil makes a significant contribution to the economies of Indonesia and Malaysia through private corporations, state-owned companies and smallholders, with the two countries supplying 85% of the global palm oil. Indonesia has 14 million hectares (ha) of oil palm; its palm oil exports were valued at USD 23 billion in 2017 and USD 21 billion in 2018. Both domestic and international communities, particularly the European Union (EU), have raised concerns about its sustainability and impact on forest conservation. For example, the European Parliament in 2017 issued a resolution to restrict the ability of EU countries to count palm oil-based biodiesel imports toward their renewable 2030 energy targets. This paper describes palm oil value chains in Indonesia at the national level, using value chain analysis and system dynamics modeling. The model is used to understand how the moratorium, peatland conservation, agrarian reform, and the EU biodiesel ban affect plantation expansion and production, employment, CO2 emissions, smallholder incomes, the private sector, and government. The model provides scenarios to make Indonesian palm oil more sustainable through intensification, no-deforestation, and no-peat strategies, as well as through land swapping. There are trade-offs between economic development and environmental conservation, but win-win solutions are available. Scenarios that build synergies between Indonesian palm oil development and forest conservation can help guide the new frontiers of oil palm development in Asia, South America, and Africa. 2020-02 2021-03-08T08:25:49Z 2021-03-08T08:25:49Z Journal Article https://hdl.handle.net/10568/112321 en Open Access Elsevier Purnomo, H., Okarda, B., Dermawan, A., Ilham, Q.P., Pacheco, P., Nurfatriani, F., Suhendang, E. 2020. Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach. Forest Policy and Economics, 111: 102089. https://doi.org/10.1016/j.forpol.2020.102089
spellingShingle oil palms
supply chain
conservation
sustainable development
small scale farming
biodiesel
Purnomo, H.
Okarda, B.
Dermawan, A.
Ilham, Q.P.
Pacheco, P.
Nurfatriani, F.
Suhendang, E.
Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach
title Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach
title_full Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach
title_fullStr Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach
title_full_unstemmed Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach
title_short Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach
title_sort reconciling oil palm economic development and environmental conservation in indonesia a value chain dynamic approach
topic oil palms
supply chain
conservation
sustainable development
small scale farming
biodiesel
url https://hdl.handle.net/10568/112321
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