Palm Oil Industry in Indonesia

Case Study by Maria Kisyova

Palm oil is a vegetable oil derived from the fruit of African oil palm trees, which typically
thrive in tropical environments. Today, palm oil supplies more than 30% of global vegetable oil
production with approximately 50 million tons of palm oil produced annually (King 2016). In
developing countries, palm oil is primarily used for cooking. Conversely, palm oil is found in 40-
50% of processed foods and in a variety of household products in developed countries such as
the United States and Canada (King 2016). With increasing global demand for palm oil products,
large scale forest conversion is taking place throughout tropical rainforests in Asia, Latin
America, and West Africa in order to make room for palm oil plantations. Indonesia and
Malaysia alone are responsible for 90% of the worlds palm trees, with Indonesia crowned as the
leading global supplier (Block 2009). On one hand, palm oil has its benefits: oil palms are
surprisingly productive crops compared to other vegetable oil-producing crops because oil palms
offer higher yields at significantly lower costs. However, lack of regulation has allowed for a
mass conversion of forests that is having detrimental effects on environmental and human health.

The Leuser Ecosystem in Indonesia is specifically threatened by industrial development

and deforestation for palm oil production. This ecosystem, located in the provinces of Aceh and
North Sumatra, consists of 6.5 million acres of tropical lowland rainforests and mountains.
According to REDD (Reducing Emissions from Deforestation and Degradation) Project
estimates, Leusers forests are falling at an alarming rate of 5,500 hectares per year, which
correlates to a yearly deforestation rate of about 2% (REDD Desk 2016). The REDD Desk
additionally states that almost 30% of the ecosystem is threatened by deforestation. As the
industry cuts down trees and releases pollutants into the environment, valuable habitat is lost and
resources such as air and water become degraded. This creates problems for both humans and
animals who depend on Leuser. The Leuser ecosystem provides four million people with clean
air and water, and it is the last place on Earth where endangered elephants, orangutans, tigers,
and rhinos coexist (Chow 2016). These reasons give environmentalists enough motive to fight
for sustainable palm oil development and biodiversity protection in the Leuser ecosystem.
 In fact, Aceh citizens recently filed a lawsuit against the Aceh government in an effort to
save the Leuser Ecosystem. Although Leuser is nationally designated as a protected area, Acehs
new spatial plan fails to specifically mention the protection of Leuser, leaving it technically
unregulated, open for development, and vulnerable against invasive palm oil industries. Farwiza
Farhan, a plaintiff in the case and chairperson of the NGO Forest, Nature and Environment of
Aceh, argued that the plan legalizes new roads, many of which have already been cut and
constructed illegally through vast areas of the forests, fragmenting the sensitive ecosystem and
opening up new pathways for destruction (Rogers 2016). The lawsuit has not yet been resolved.

The environmental justice problem occurs in Indonesia in the form of environmental

racism and exploitation of vulnerable populations. As the palm oil industry continues polluting
Leusers air and water, millions of people will experience threats to their quality of life.
Furthermore, the palm oil industry exploits indigenous people in Indonesia by promising
livelihood and providing the opposite. Industry representatives promote palm oil plantations as a
way to fuel local economy, provide jobs, and bring development to rural regions. After accepting
the industrys appealing offer, locals realize they made a mistake: the industry is purely
concerned with its own financial benefit. Locals and indigenous people experience harsh
working conditions, forced child labor, and are often forced off their land. The following is a
quote from Thomas King, founder of Say No to Palm Oil, describing the human rights violations
and exploitations associated with the palm oil industry:

Children are made to carry large loads of heavy fruit, weed fields and spend hours every day
bent over collecting fruit from the plantation floor [they] receive little or no pay ... With
plantations systematically destroying the rainforest land that the local people depend on,
communities are continuously finding themselves with no choice but to become plantation
workers indigenous communities become reliant on the palm oil industry for their income and
survival, leaving these villagers incredibly vulnerable to the world market price of palm oil which
they have no control over.

In addition to human rights violations, the palm oil industry creates an animal welfare
crisis. As briefly mentioned, the populations of currently endangered speciesthe Sumatran
orangutan, tiger, elephant, and rhinoare further threatened by land development for palm oil.
During deforestation, valuable habitat is lost and animals are injured, displaced, and killed. Like
the four million people dependent on Leusers resources, animals are also affected by diminished
air and water quality. Additionally, palm oil development puts animals in danger by increasing
the accessibility of animals to poachers and wildlife smugglers (King 2016). By applying
philosopher Mylan Engels theory of animal ethics, deforestation is morally wrong and may be
considered a form of animal abuse because it results in the harm and death of animals for no
good reason.

Indigenous people and animals are exploited for the sole purpose of bringing the
rainforest to the cupboards and dinner tables of global consumers. A majority of people in the
United States and Canada are completely unaware of the effects their consumerism has on the
environment and on people across the world. Consumers generally do not pay attention to the
ingredients of their products and what kind of global impacts are associated with the acquisition
and production of the ingredients. People around the world have no idea what industries they are
supporting through the purchase of certain products, such as ice cream, instant noodles,
shampoo, and detergent. Global consumers unknowingly contribute to the growing demand for
palm oil, and are thus indirectly supporting the environmental and human health impacts
associated with palm oil production.
 References

Block, B. (April 2009). Can Sustainable Palm Oil Slow Deforestation? Worldwatch Institute.

Retrieved from http://www.worldwatch.org/node/6082

Block, B. (April 2009). Global Palm Oil Demand Fueling Deforestation. Worldwatch Institute.

Retrieved from http://www.worldwatch.org/node/6059

Block, B. (April 2009). Oil Palm Industry Takes Land, Promises Livelihood. World watch

Institute. Retrieved from http://www.worldwatch.org/node/6075

Chow, L. (March 2016). Leonardo DiCaprio: We Must Save the Last Place on Earth Where

Orangutans, Rhinos and Elephants Coexist. Ecowatch. Retrieved from

http://www.ecowatch.com/leonardo-dicaprio-we-must-save-the-last-place-on-earth-
where-orangutan-1882200037.html

Climate Action Tracker. (2016). Climate Action Tracker: Indonesia. Climate Action Tracker.

Retrieved from http://climateactiontracker.org/countries/indonesia.html

King, T. Oray, M. (2016). Palm Oil: Whats the Issue? Say No To Palm Oil. Retrieved from

http://www.saynotopalmoil.com/Whats_the_issue

REDD Desk. (2016). Leuser Ecosystem REDD Project. The REDD Desk. Retrieved from

http://theredddesk.org/countries/initiatives/leuser-ecosystem-redd-project
Rogers, C. (January 2016). Aceh citizens sue government to save Leuser Ecosystem.

Mongabay. Retrieved from https://news.mongabay.com/2016/01/aceh-citizens-sue-

government-to-save-leuser-ecosystem/

World Wildlife Fund. (2016). Sustainable Agriculture: Palm Oil. World Wildlife Fund.

Retrieved from http://www.worldwildlife.org/industries/palm-oil