134
Globally, most of the palm oil production is located in Southeast Asia and particularly in Indonesia and Malaysia. The two countries accounted for 85.4% of
global production in 2014 and for 86.0% of palm oil exports in 2013 (FAO 2017).
1
In fact, the huge increase in palm oil production globally has been spearheaded by
the oil palm expansion and yield increases in the two countries. Between 1961 and
2014, palm fruit yield increased by 27.7% in Indonesia and by 77.4% in Malaysia
(FAO 2017). However, these yield increases are nowhere near to the expansion of
the area under oil palm cultivation, a 106-fold expansion in Indonesia and a 108fold expansion in Malaysia (Fig. 10.1).
There is evidence to suggest that oil palm production mainly happened at the
expense of forested land rather than land already under agriculture (Gibbs et al.
2010). According to Koh and Wilcove (2008), 55–59% of oil palm expansion in
Malaysia and at least 56% in Indonesia occurred at the expense of primary forests.
Estimates suggest that since 1990, 1 million ha and 1.7–3 million ha of forest were
lost in Malaysia and Indonesia, respectively, due to oil palm (Fitzherbert et al. 2008;
Koh and Wilcove 2008). There have been fears that the lack of careful planning in
the ongoing expansion of oil palm in Indonesia might lead to significant additional
deforestation (Koh and Ghazoul 2010).
Smallholders play a significant role is the palm oil sector in Indonesia
(Pricewaterhouse Coopers 2010; Gatto et al. 2015). Most smallholders have entered
the palm oil sector through state-sponsored agreements between private companies
1 In 2013, palm oil was the seventh most widely traded agricultural commodity in monetary terms
at USD 33.8 billion with the biggest importers being India, China, the Netherlands, Pakistan, and
Nigeria (FAO 2017).
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013
Area (million ha)
Indonesia
Malaysia
Fig. 10.1 Area under oil palm cultivation in Indonesia and Malaysia, 1961–2014 (Source FAO
2017)
R. Moreno-Peñaranda et al.
Globally, most of the palm oil production is located in Southeast Asia and particularly in Indonesia and Malaysia. The two countries accounted for 85.4% of
global production in 2014 and for 86.0% of palm oil exports in 2013 (FAO 2017).
1
In fact, the huge increase in palm oil production globally has been spearheaded by
the oil palm expansion and yield increases in the two countries. Between 1961 and
2014, palm fruit yield increased by 27.7% in Indonesia and by 77.4% in Malaysia
(FAO 2017). However, these yield increases are nowhere near to the expansion of
the area under oil palm cultivation, a 106-fold expansion in Indonesia and a 108fold expansion in Malaysia (Fig. 10.1).
There is evidence to suggest that oil palm production mainly happened at the
expense of forested land rather than land already under agriculture (Gibbs et al.
2010). According to Koh and Wilcove (2008), 55–59% of oil palm expansion in
Malaysia and at least 56% in Indonesia occurred at the expense of primary forests.
Estimates suggest that since 1990, 1 million ha and 1.7–3 million ha of forest were
lost in Malaysia and Indonesia, respectively, due to oil palm (Fitzherbert et al. 2008;
Koh and Wilcove 2008). There have been fears that the lack of careful planning in
the ongoing expansion of oil palm in Indonesia might lead to significant additional
deforestation (Koh and Ghazoul 2010).
Smallholders play a significant role is the palm oil sector in Indonesia
(Pricewaterhouse Coopers 2010; Gatto et al. 2015). Most smallholders have entered
the palm oil sector through state-sponsored agreements between private companies
1 In 2013, palm oil was the seventh most widely traded agricultural commodity in monetary terms
at USD 33.8 billion with the biggest importers being India, China, the Netherlands, Pakistan, and
Nigeria (FAO 2017).
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013
Area (million ha)
Indonesia
Malaysia
Fig. 10.1 Area under oil palm cultivation in Indonesia and Malaysia, 1961–2014 (Source FAO
2017)
R. Moreno-Peñaranda et al.