http://www.thejakartaglobe.com/commentary/the-threat-of-indonesias-palm-oil-rush/425993

The Threat of Indonesia's Palm Oil Rush
Akira Moretto | March 02, 2011

 

A forest cleared to make way for a palm oil plantation in West Kalimantan. 
(Reuters Photo)



For those not familiar with images of a tropical forest being depleted, it is 
difficult to imagine the level of desperation faced by indigenous populations 
who have retained their customary rights to live and depend on the forest's 
environment according to their traditional ways. Many of these people of the 
forest live by traditional hunting and gathering, relying on their 
environmental knowledge to secure food resources. 

Yet among these ancient tropical forests, many do not resemble what they looked 
like even 20 years ago. Many forest areas around the world now show common 
features of depletion, such as rivers turning brown as a result of 
slash-and-burn practices. The changes are altering the land that nature has 
shaped over millions of years and life cycles. 

One of the most extensive tropical forests in the world is the Indo-Malayan 
one, stretching across India, Sri Lanka, mainland Asia and Southeast Asia. It 
is reputed to be one of the oldest and richest in biodiversity. But despite 
rainforests often being labelled the "lungs of the world," rainforests are 
increasingly becoming victims of land clearance, with their trees being 
replaced by palm trees. 

In Indonesia and Malaysia alone, between 1990 and 2000 the amount of land 
devoted to palm oil production doubled in Malaysia and tripled in Indonesia, 
reaching almost seven million hectares together. Indonesia alone is planning to 
increase this amount to 11.2 million hectares by 2020. 

Reasons for the increase in the production of palm trees are two-fold. First of 
all, as part of efforts to reduce heart diseases caused by diets high in 
trans-fats in vegetable oils, the worldwide demand for palm oil among food 
manufacturers is increasing. Yet palm oil creates health issues of its own, 
being high in saturated fats, and the World Health Organization has discouraged 
its consumption in favor of more heart-healthy alternatives such as olive oil. 

The second reason for the increased production of palm trees is the fact that 
they contain the main component for ecological biofuels. Palm trees produce 
palm oil and palm kernel oil, edible plant oils derived from the fruits of palm 
trees. This oil is used to produce biofuel, and several energy companies are 
planting hundreds of thousands of these trees across Borneo, clear-cutting and 
destroying forests where for centuries tribal populations have lived. 

This has been exacerbated because of the rise in demand for biofuels. One 
single hectare of palm oil is able to produce the equivalent of more than 6,000 
liters of crude oil. With the growing demand for alternative fossil fuels, palm 
oil producers are looking at this business as a lucrative source of future 
profits. Governments and consumers are also paying attention, given that some 
palm oil producers are not being fully held accountable for environmental 
destruction or human rights abuses. 

Palm oil has been labelled as the alternative to petrol and gas, with the 
intention of reducing CO2 emissions, which are enhancing the greenhouse effect. 
But after having replaced other species of plants which provide more generous 
returns to the environment, palm oil plants are taking much more out of the 
environment, releasing much less oxygen compared to the virgin forests they are 
now slowly replacing. 

Furthermore, cultivation with pesticides and fertilizers is putting pressure on 
all the surrounding areas where palm oil is cultivated. Some of the most 
ordinary supermarket products contain palm oil, including products like shampoo 
or facial soaps. But what many do not realize is how palm oil plantations in 
Southeast Asia are causing the destruction of rainforests, destroying the 
livelihoods of indigenous people and changing the climate, locally and 
globally. 

This is the other face of a world economy increasingly interested in satisfying 
business and consumer appetites for the new millennium. Businesses managed by 
multinational companies holding prestigious names, contributing to refilling 
supermarkets and fueling gas stations throughout the world, are increasingly 
causing environmental degradation as well. 

But environmental grass-roots organizations, with Greenpeace perhaps as the top 
runner, are trying to raise awareness of the fact that areas like Borneo, 
Sumatra and Papua New Guinea are increasingly becoming monocultural. The new 
plants all look the same, still green, but a lot more lucrative. 

However, a complicating factor for campaigners is that it is extremely 
difficult to reach some of the most remote destinations where palm oil is being 
planted. And the new "land owners" usually do not allow easy access to remote 
areas where tigers, elephants and orangutan were once living among trees 100 
meters high. By foot, several days might be required to reach those areas. 

It is also with the help of multinationals working on palm oil that logging 
companies are able to create lucrative businesses, logging the forests to make 
space for palm oil cultivation. 

Many of the emerging economies in Asia are in fact stocking up with wood from 
the forests of Southeast Asia while Malaysia has slowly become the 
second-biggest worldwide exporter of palm oil after Indonesia. Indonesia 
produces 22 million metric tons of palm oil compared to Malaysia's 17 million. 
Ominously, there seems to be evidence that more than half of the new palm oil 
plantations are coming about at the expense of tropical forests. Between 1990 
and 2005 palm oil plantations in Malaysia have doubled and now cover 3.6 
million hectares, of which almost half used to be tropical forest. 

While acknowledging the existence of native forest people, states and 
industrial companies often view tropical forests purely as empty lands 
available for exploitation and for the expansion of economic development 
through plantations, logging, oil wells, pipelines and agro-businesses. As a 
consequence, the modern conception of economic development endangers both the 
preservation and protection of forests, as well as those who inhabit them. In 
this context of industrialization forest people are increasingly faced with the 
gradual elimination of their customary ways of living, their means of survival 
as well as a loss of identity and cultural collapse by being forced out of 
their forest homes. 

After growing global environmental campaigns by grass-roots nongovernmental 
organizations and a number of scientific studies, there seems to be a growing 
awareness of the public relations damage for countries and multinationals 
exploiting forests. Some food multinationals even stopped buying palm oil not 
cultivated under sustainable principles. However, it remains to be seen whether 
this is enough. While these efforts are being made, logged wood and palm oil 
continue to be distributed on the market, with clients patiently waiting for 
their goods to be delivered. 

This begs the question of why countries have not been doing more to curb the 
destruction of rainforests. 

One of the enduring causes, which countries like Indonesia face, is the lack of 
economic diversification as a strong foundation for growth. Economic 
diversification would enable these countries to move into other, more 
environmentally friendly industries without harming growth prospects. 

Still, economic diversification continues to be a significant problem for many 
developing countries, since their economies are generally characterized by a 
heavy reliance on the production of primary commodities. In the case of palm 
oil, economic growth seems to come at the expense of long-term goals of 
sustainable development, increasing countries' vulnerability to environmental 
degradation. 

  

Akira Moretto is an associate consultant at Strategic Asia, a Jakarta-based 
consultancy promoting cooperation among Asian nations. He can be contacted at 
[email protected]




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