By Tania Murray Li and Pujo Semedi
August 08, 2024
Indonesia’s palm oil industry is a stark contrast of wealth and poverty.
While corporations reap billions in revenue, villagers living near oil palm plantations suffer. They lose access to farm and forest land, and many struggle to find work.
Independent oil palm smallholders have potential to prosper with oil palm, and so far they have planted 36 percent of Indonesia’s oil palm area. Official data clearly show the contribution smallholders make to the national economy, yet the government offers them little support. Several government policies actually hinder smallholder prosperity, especially policies concerning land laws, finance, and the favored model of production.