Based on the current land-use policy, spatial planning and maps of oil palm expansion in Indonesia, this study identified three plausible future scenarios; namely business as usual, conservation and sustainable intensification for future development of oi

Key messages The land-use change caused by oil palm expansion results in adverse impacts on ecosystem functions and services provided by natural forests.This study assesses the impacts of oil palm expansion on key ecosystem services and analyzes the trade-offs among ecosystem services under four plausible future land-use scenarios in Central Kalimantan, Indonesia: business as usual, moratorium, zero gross deforestation and sustainable intensification.A trade-off between carbon benefit and habitat quality was observed in the area with low carbon stock. Providing some habitat quality in areas of oil palm expansion enhanced the carbon benefit.A synergy between carbon sequestration and water yield was evident due to oil palm expansion on Dry Rice Land with Mixed Scrub under the zero gross deforestation scenario.Among the four plausible LULC scenarios, zero gross deforestation is the most desirable option for the study area in Central Kalimantan.A successful implementation of zero gross deforestation requires a review of the forest moratorium to encompass all forest types, a clear land-use policy strategy and a detailed land-use plan involving all jurisdictions and engagement of stakeholders.Sustainable intensification is the second-best land use and land cover option for oil palm expansion with an assumed average yield enhancement to 5 tCPO ha-1 yr-1. However, enhancing yield in smallholder farms by 78% is highly challenging. It may be achievable by providing appropriate and adequate technical and management supports to smallholder farms and by ensuring off-take markets for oil palm produced by smallholders.

The oil palm is the world's most valuable oil crop. Its production has increased over the decades, reaching 56 million tons in 2013, and it gives the highest yields per hectare of all oil crops. Remarkably, oil palm has remained profitable through periods of low prices. Demand for palm oil is also expanding, with the edible demand now complemented by added demand from biodiesel producers. The Oil Palm is the definitive reference work on this important crop. This fifth edition features new topics - including the conversion of palm oil to biodiesel, and discussions about the impacts of palm oil production on the environment and effects of climate change – alongside comprehensively revised chapters, with updated references throughout. The Oil Palm, Fifth Edition will be useful to researchers, plantation and mill managers who wish to understand the science underlying recommended practices. It is an indispensable reference for agriculture students and all those working in the oil palm industry worldwide.

The planet is currently experiencing a mass extinction event, with human and business activity being the root cause of species loss and habitat destruction. Industries, companies, banks, investors, accountants and auditors have all played their role. This book explores how they can also provide a solution. The book presents plans, metrics, frameworks, mechanisms and financial innovations that can be, and are being, implemented through the financial markets in order to save and protect species, enhance biodiversity and, at the same time, preserve the financial markets and the business world. This biodiversity handbook addresses the intersection between species extinction and the global capitalist system. With contributions from leading non-governmental organisations such as the Capitals Coalition, Business for Nature, the Ecojustice Foundation, ShareAction and the Endangered Wildlife Trust, plus senior researchers in the field, as well as industry experts from Moody’s, EOS at Hermes Federated Investment Management, BlueBay Asset Management, ODDO BHF Asset Management and OSSIAM (to mention just a few), this book is at the forefront of addressing the crucially important topics of extinction accounting, finance and governance. Drawing on leading research, the book is written in an accessible style and is relevant to researchers and students in the fields of sustainability, governance, accounting, finance, corporate social responsibility and corporate governance. It is essential reading for investors, responsible investors, bankers, business leaders and policy makers in the field of sustainable financial markets. Given the interdisciplinary nature of this book, it is useful to conservationists, ecologists and others involved in species and biodiversity protection.

The rapid expansion of Indonesia’s independent smallholder oil palm sector is posing important productivity, sustainability and legality challenges. As a result, the need to better regulate independent oil palm smallholders is increasingly being acknowledged by Indonesian polity. Because the sub-sector is comprised of highly diverse stakeholder groups that face and pose distinct challenges, a targeted and stakeholder-disaggregated approach to sector regulation is required. Efforts to that effect have, however, been frustrated by an inadequate understanding of independent oil palm smallholder characteristics and associated challenges. This paper aims to contribute to this knowledge gap by developing a typology of independent oil palm smallholders. Through a hierarchical cluster analysis employing field data collected on 1840 smallholders in one of Sumatra’s largest oil palm producing districts, Rokan Hulu, six sub-groups are identified, which are differentiated here on the basis social, economic, and geographic characteristics. Drawing on these results, the paper identifies a number of specific intervention priorities for each of the sub-groups

This book not only highlights the risks associated with large-scale investment, but also advises on how governments can create an environment to attract investment that contributes to broad-based growth and poverty reduction in cases where land acquisition by large investors makes sense from a social, economic, and environmental perspective.

This paper proposes an overview of the development of oil palm production in Indonesia combining two levels: (i) a national and historical perspective of the development of the sector; (ii) a regional approach considering two contrasting provinces, Riau and Jambi. Starting with colonial times, the national approach deals first with the main periods that punctuate the development of oil palm plantations up to the contemporary period, marked by the liberalization of the economy. It emphasizes several factors that played a strategic role in the development of palm oil production, such as the role of the State and migration. After presenting the different models that structure the relationships among stakeholders and how these relationships have evolved, the role of small family planters is analyzed. This section ends with a review of some controversial issues: livelihood improvement, land tenure and customary rights, inclusion versus exclusion, market risks, forest and environmental threats and governance. The regional approach gives context to the development of palm oil production within two territories that have different historical backgrounds, with Jambi entering into production relatively recently. In each of the two provinces, the themes and issues involved in palm oil development identified at national level are analyzed, with specific emphasis on stakeholders’ strategic behaviours. The paper concludes with a comparative perspective on both provinces.

In Plantation Life Tania Murray Li and Pujo Semedi examine the structure and governance of Indonesia's contemporary oil palm plantations in Indonesia, which supply 50 percent of the world's palm oil. They attend to the exploitative nature of plantation life, wherein villagers' well-being is sacrificed in the name of economic development. While plantations are often plagued by ruined ecologies, injury among workers, and a devastating loss of livelihoods for former landholders, small-scale independent farmers produce palm oil more efficiently and with far less damage to life and land. Li and Semedi theorize “corporate occupation” to underscore how massive forms of capitalist production and control over the palm oil industry replicate colonial-style relations that undermine citizenship. In so doing, they question the assumption that corporations are necessary for rural development, contending that the dominance of plantations stems from a political system that privileges corporations.

The objective of this study was to evaluate past and current policies and smallholder financing schemes in the palm oil industry in Indonesia and Malaysia. The outcomes of these models for smallholders were also evaluated, in terms of income security, sustainable practices and environmental impact. Finally, financing schemes that could contribute to more sustainable smallholder oil palm development were analyzed, and compared to past and existing schemes. The focus of this study is on oil palm smallholders, who play a crucial role in the palm oil production industry and account for the vast majority of oil palm cultivation in Malaysia, and even more so in Indonesia. A number of past and current financing schemes in Indonesia and Malaysia were evaluated through a literature analysis and field assessment. In Malaysia, the main long-term financing challenges faced by smallholders have been solved by large government-sponsored financing schemes and are, thus, less relevant for the report’s discussion. As such, the case studies regarding current innovative financing schemes are restricted geographically to Indonesia. The report proposes potential models to increase the mobilization of long-term finance to smallholders in the palm oil sector. Furthermore, it identifies and reflects on the key enabling conditions that would help overcome the bottlenecks in smallholder long-term financing and create an enabling environment for sustainable oil palm investments. These are: 1) incentives to meet sustainability requirements including Good Agricultural Practices, RSPO certification and deforestation-free production; 2) land tenure security; 3) improved market linkages between smallholders and mills; 4) support for FSPs to assess and manage risks; and 5) strong and effective smallholder organizations.