Jakarta — A recent study by a coalition of civil society organisations, including MADANI Berkelanjutan, Satya Bumi, and Sawit Watch, has revealed that Indonesia’s environmental capacity to sustain palm oil cultivation is nearing its limit. The research concluded that the country’s palm oil industry can only sustainably occupy a maximum of 18.15 million hectares, a significant revelation for a sector that has expanded rapidly over the past two decades, the groups said in a joint statement on Tuesday, October 1.
With palm oil plantations covering vast areas of Indonesia, the findings highlight a growing concern: the available land for further expansion is shrinking, and the country’s ecosystems are becoming increasingly strained. The coalition warns that if the growth of the palm oil industry continues unchecked, the environmental and economic consequences could be severe. Deforestation, loss of biodiversity, and declining productivity could not only damage the environment but also threaten the long-term viability of the palm oil industry and the national economy.
Giorgio Budi Indrarto, Deputy Director of MADANI Berkelanjutan, emphasised the need to shift industry practices. He said the current focus is on expanding palm oil plantations, not improving productivity. “How can palm oil be changed to be better, not destructive, and utilised optimally without expanding? The context of carrying capacity and capacity needs to be sounded,” said Giorgio.
The research used an ecological footprint calculator to measure land suitability for palm oil cultivation. Fourteen limiting environmental factors, including water availability, peat hydrological units, mangroves, conservation areas, and the presence of protected species, were taken into account. The findings suggest that palm oil can only be grown sustainably in areas where these factors are not compromised.
Riezcy Cecilia Dewi, a researcher from Satya Bumi, said they first calculated the land required to meet human needs across various sectors and then assessed land suitability for palm oil based on physical parameters. She said the results show that 34% of existing palm oil plantations in 2022 were outside suitable land areas, with the majority located in Kalimantan.
“It was found that 64% of palm oil ‘caps’ were in important areas that were included in the limiting variables. Most were found in Kalimantan, reaching 80% of the existing palm oil cover there,” Riezcy explained.
Sawit Watch Executive Director Achmad Surambo said respecting the environmental “cap” on palm oil expansion is important. He said, that if the industry exceeds these limits, the consequences will be felt across various sectors, especially as the land’s capacity to support palm oil will be overwhelmed. Surambo urged the next Indonesian government to incorporate the study’s findings into regulatory frameworks that prevent further expansion.
The coalition has called for immediate action, urging the government to halt new licenses for oil palm plantations and prioritise improving the efficiency of existing plantations. Among their recommendations are optimizing plantation intensification, resolving land and agrarian conflicts, pursuing tax reform in the palm oil sector, and encouraging adherence to sustainability certification standards such as the ISPO and RSPO.
The research findings provide a critical framework for future palm oil industry policies in Indonesia. As the industry faces environmental and economic crossroads, the coalition’s work underscores the urgent need for a balanced approach to palm oil production that protects both ecosystems and economic stability. (nsh)
–Updated: Oct 2, 14:24. First paragraph. Previously the maximum capacity for oil palm plantation in Indonesia was cited as 18.51 million hectares. MADANI Berkelanjutan corrected this figure to 18.15 million hectares.
