Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 560039
Title Reconciling oil palm economic development and environmental conservation in Indonesia : A value chain dynamic approach
Author(s) Purnomo, Herry; Okarda, Beni; Dermawan, Ahmad; Ilham, Qori Pebrial; Pacheco, Pablo; Nurfatriani, Fitri; Suhendang, Endang
Source Forest Policy and Economics 111 (2020). - ISSN 1389-9341
DOI https://doi.org/10.1016/j.forpol.2020.102089
Department(s) Public Administration and Policy
Publication type Refereed Article in a scientific journal
Publication year 2020
Keyword(s) Biodiesel - European Union - Palm oil - Smallholders - Sustainable development - Value chains
Abstract

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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