Shinji Sensei Report (Martiwi)

8/3/2019 Shinji Sensei Report (Martiwi)

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Name : Martiwi Diah Setiawati

ID student number : 11 8710 602 3

Lecturer : Prof.Masato Shinji

Palm Oil Plantation and Its Problem in Indonesia

Palm oil is one of the most important export commodity for Indonesia beside gas and

petroleum. Over the last 14 years, increasing oil palm plantation area until 2.35 million ha

was occurred in 1999. It can be shown in the figure 1.

Figure 1. Area of Oil Palm Plantation, 1985-1999 (Directorate General of Plantations in

Manurung, 2001)

Increasing oil palm plantation area was followed with increasing total production of

Indonesian palm oil. The development of sub-sectors of oil palm plantations in Indonesia are

not separated from the government policies that provide incentives. It was started in 1996,

when Suharto as president of Indonesia want to defeat Malaysia as the biggest exporter of

palm oil in the world. So that, the development of palm oil plantations was done in some

island in Indonesia like Kalimantan, Sumatra, Papua, and Sulawesi. It can be shown in the

figure 2.

Smallholder GovernmentPrivate

company



Figure 2. Palm oil production and export value, 1990- 1998 (BPS and Ministry of Forestry

and Estate Crops in Casson, 2000)

Increasing palm oil area will threat the existence of tropical forest of Indonesia.

Because the development of oil palm plantation was occurred at forest conversion area. The

investors prefer to establish palm oil plantations in forest areas conversion because of

potentially benefit in the form of wood of converted natural forest. Another cases is the

development of oil palm plantation occurred at Bukit Tigapuluh National Park with the area

of plantation almost 12000 ha. As a result, forest conversion activities has become a source of

destruction of Indonesia's natural forests, and even a threat to the loss of wealth biodiversity

of tropical rain forest ecosystem in Indonesia.

Furthermore, the practice of conversion of natural forests for oil palm plantation

development is often a major cause of forest fire and land fires in Indonesia. It is happened

because in the land clearing activity to develop oil palm plantation was done by burning in

order to quickly and low cost. Results of field research states that most of the forest and land

fires are in (from) the location of oil palm plantation development.

millon

US$

Total Production (ton)

Export value (US$)



Figure 3. The data was tak

Central Kalimantan. (

Figure 4. Oil palm pl

n from Modis AIT at 25 September 2009 in

he picture shows that hotspot near the plan

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rubber plantationrubber plantationrubber plantationrubber plantation

apuas District,

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Figure 5. Land cover in 1989,1996,1998 based on the GIS on Landsat TM image combined

with SAR at Tumbang Titi West Kalimantan. (Ruchiyat, 2001)

There are many environmental problem occurs during oil palm plantation developed.

The impact of this are pest attack, changes in soil surface water runoff, increased soil erosion,

and environmental pollution because of large quantities using of fertilizer and pesticide and

another negative impact from natural tropical forest.

Beside environmental problem, there is also social problem such as, development of

oil palm plantation in large-scale area has also led to remove the local communities who lived

in the area of oil palm development. In addition, land claims by local communities against oil

palm plantations also to be a big social problem. These issues have sparked a protracted

social conflict issues and is very detrimental to all parties - especially for people who get the

negative impacts from development palm oil plantations.

Environmental costs and social costs that occur should be taken into account in the

analysis of oil palm plantation investments. However, private plantation companies never

include the cost of environmental and social costs in the financial analysis of oil palm

plantation development project in Indonesia.

Reference

Casson, A. 2000. The Hesistant Boom: Indonesia’s Oil Palm Sub-Sector in an Era of

Economic Crisis and Political change. CIFOR Occasional Paper No. 29. CIFOR,



Bogor, Indonesia.

Manurung,T. 2001. Analisis Valuasi Ekonomi Investasi Perkebunan Kelapa Sawit di

Indonesia. Technical Report of Environmental Policy and Institutional Strengthening

IQC,Jakarta, Indonesia.

Ruchiyat, 2001. The Underlying Causes and Impact of Fire.CIFOR Workshop project of

Community development through rehabilitation of Imperata grasslands using trees: A model

approach growing Vitex Pubescens for charcoal production in Kalimantan Indonesia.

Pontianak , Indonesia.

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