Socio-Economic Impact Assessment of Palm Oil Production

In 1935 Indonesia became the global
leader in palm oil export, with a plantation area
of 75,000 ha. Seventy five years later it re-gained the number one position
that it had lost to Malaysia with a planted area of over 8 M ha, 100 times more than in 1935, but still less than 5% of its land
area. In much of the humid lowland tropics, oil palm production is one of the most economically attractive forms of land
use. The introduction and expansion of oil palm in Indonesia reflects its economic attractiveness and benefits, but the social
interactions between companies and local communities have had a mixed track record that requires attention. Ambiguous
and contested land tenure in local communities and the state issuing concession licenses has been at the heart of most of
the problems in this regard.