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Expansion of Oil Palm Plantations in Indonesia’s Frontier: Problems of Externalities and the Future of Local and Indigenous Communities

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  • Agus Andrianto

    (Center for International Forestry Research (CIFOR), Bogor 16115, Indonesia)

  • Heru Komarudin

    (Center for International Forestry Research (CIFOR), Bogor 16115, Indonesia)

  • Pablo Pacheco

    (Center for International Forestry Research (CIFOR), Bogor 16115, Indonesia
    World Wildlife Fund (WWF), Washington, DC 20037, USA)

Abstract

The expansion of oil palm plantations in Papua province, Indonesia, involves the conversion of forests, among other land types in the landscapes, which are a source of clan members’ livelihoods. The way in which this expansion occurs makes it necessary to understand the factors associated with why companies look for frontier lands and what externalities are generated during both the land acquisition and plantation development periods. Using a spatial analysis of the concession areas, along with data from household surveys of each clan from the Auyu, Mandobo, and Marind tribes who release land to companies, we find that investors are motivated to profit from timber harvested from the clearing of lands for plantations, activity that is facilitated by the local government. Land acquisition and plantation development have resulted in externalities to indigenous landowners in the form of time and money lost in a series of meetings and consultations involving clan members and traditional elders. Other externalities include the reduced welfare of people due to loss of livelihoods, and impacts on food security.

Suggested Citation

  • Agus Andrianto & Heru Komarudin & Pablo Pacheco, 2019. "Expansion of Oil Palm Plantations in Indonesia’s Frontier: Problems of Externalities and the Future of Local and Indigenous Communities," Land, MDPI, vol. 8(4), pages 1-16, March.
    • Handle: RePEc:gam:jlands:v:8:y:2019:i:4:p:56-:d:218362
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    References listed on IDEAS

    as
    1. Obidzinski, Krystof & Dermawan, Ahmad & Andrianto, Agus & Komarudin, Heru & Hernawan, Dody, 2014. "The timber legality verification system and the voluntary partnership agreement (VPA) in Indonesia: Challenges for the small-scale forestry sector," Forest Policy and Economics, Elsevier, vol. 48(C), pages 24-32.
    2. Ramona Bunkus & Insa Theesfeld, 2018. "Land Grabbing in Europe? Socio-Cultural Externalities of Large-Scale Land Acquisitions in East Germany," Land, MDPI, vol. 7(3), pages 1-21, August.
    3. Bunkus, Ramona & Theesfeld, Insa, 2018. "Land Grabbing In Europe?," 58th Annual Conference, Kiel, Germany, September 12-14, 2018 275859, German Association of Agricultural Economists (GEWISOLA).
    4. Larkin, Sherry L. & Huffaker, Ray G. & Clouser, Rodney L., 2013. "Negative Externalities and Oil Spills: A Case for Reduced Brand Value to the State of Florida," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(3), pages 389-399, August.
    5. Larkin, Sherry L. & Huffaker, Ray G. & Clouser, Rodney L., 2013. "Negative Externalities and Oil Spills: A Case for Reduced Brand Value to the State of Florida," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45, pages 1-11, August.
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    Cited by:

    1. Arya Hadi Dharmawan & Dyah Ita Mardiyaningsih & Heru Komarudin & Jaboury Ghazoul & Pablo Pacheco & Faris Rahmadian, 2020. "Dynamics of Rural Economy: A Socio-Economic Understanding of Oil Palm Expansion and Landscape Changes in East Kalimantan, Indonesia," Land, MDPI, vol. 9(7), pages 1-20, July.
    2. Toumbourou, Tessa D. & Dressler, Wolfram H. & Werner, Tim T., 2022. "Plantations enabling mines: Incremental industrial extraction, social differentiation and livelihood change in East Kalimantan, Indonesia," Land Use Policy, Elsevier, vol. 119(C).
    3. Lara M. Lundsgaard-Hansen & Christoph Oberlack & Glenn Hunt & Flurina Schneider, 2022. "The (In)Ability of a Multi-Stakeholder Platform to Address Land Conflicts—Lessons Learnt from an Oil Palm Landscape in Myanmar," Land, MDPI, vol. 11(8), pages 1-40, August.
    4. Rochgiyanti Rochgiyanti & Deasy Arisanty & Karunia Puji Hastuti, 2023. "Fishing Tourism of Conflict Area in South Kalimantan," Technium Social Sciences Journal, Technium Science, vol. 39(1), pages 516-528, January.
    5. Stephany Iriana Pasaribu & Frank Vanclay, 2021. "Children’s Rights in the Indonesian Oil Palm Industry: Improving Company Respect for the Rights of the Child," Land, MDPI, vol. 10(5), pages 1-21, May.
    6. Rowland, Dominic & Zanello, Giacomo & Waliyo, Edy & Ickowitz, Amy, 2022. "Oil palm and gendered time use: A mixed-methods case study from West Kalimantan, Indonesia," Forest Policy and Economics, Elsevier, vol. 137(C).
    7. Christine Richter & Marthe Derkzen & Annelies Zoomers, 2020. "Land Governance from a Mobilities Perspective," Land, MDPI, vol. 9(2), pages 1-9, January.
    8. Putraditama, Andika & Kim, Yeon-Su & Sánchez Meador, Andrew Joel, 2019. "Community forest management and forest cover change in Lampung, Indonesia," Forest Policy and Economics, Elsevier, vol. 106(C), pages 1-1.
    9. Tran Van Ty & Kim Lavane & Phan Chi Nguyen & Nigel K. Downes & Nguyen Dinh Giang Nam & Huynh Vuong Thu Minh & Pankaj Kumar, 2022. "Assessment of Relationship between Climate Change, Drought, and Land Use and Land Cover Changes in a Semi-Mountainous Area of the Vietnamese Mekong Delta," Land, MDPI, vol. 11(12), pages 1-20, November.

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