This paper analyses the environmental, socioeconomic and cultural impacts of oil palm development in the Prafi Plain of Manokwari District in West Papua Province. This analysis is based on interviews and focus group discussions conducted in January-August 2011, a literature survey, and analysis of Landsat images of the region. The research findings indicate that oil palm cultivation brings significant benefits-such as infrastructure development, higher incomes for local stakeholders and broader opportunities for customary communities. However, the large number of immigrant workers brought in to work on the plantation estate are a source of conflict with the local population. Oil palm development has had adverse environmental impacts as it has resulted in the deforestation of about 60% of the Prafi watershed. It has also caused soil erosion, poor water quality and air pollution. To avoid additional adverse impacts, the development and expansion of oil palm estates should focus on replanting old plantation areas with high-yield varieties and planting on non-forested and degraded land. Special land zones should be set aside for the indigenous Arfak people to use for subsistence farming. Additional efforts should be made to ensure that local communities receive proper compensation for the loss of use of their traditional lands. Increasing transparency in land allocation, stricter supervision of plantation operations and sanctions for non-compliance with sustainability standards are of utmost importance.

Oil palm plantations can be a significant contributor to rural livelihoods in Indonesia. The government seeks to capitalize on this commodity and strengthen Indonesia’s position as the global leader in palm oil production by expanding plantation estates. As the land for new plantation investment in Kalimantan and Sumatra becomes scarce, plantation developers are looking east to acquire land in Papua Province. The rising interest in oil palm plantations in Papua presents potential opportunities but also poses challenges.

Oil palm plantations and smallholdings are expanding massively in Indonesia. Proponents highlight the potential for job creation and poverty alleviation, but scholars are more cautious, noting that social impacts of oil palm are not well understood. This report draws upon primary research in West Kalimantan to explore the gendered dynamics of oil palm among smallholders and plantation workers. It concludes that the social and economic benefits of oil palm are real, but restricted to particular social groups. Among smallholders in the research area, couples who were able to sustain diverse farming systems and add oil palm to their repertoire benefited more than transmigrants, who had to survive on limited incomes from a 2-ha plot.

The rapid development of oil palm cultivation feeds many social issues such as biodiversity, deforestation, food habits or ethical investments. How can this palm be viewed as a ‘miracle plant’ by both the agro-food industry in the North and farmers in the tropical zone, but a serious ecological threat by non-governmental organizations (NGOs) campaigning for the environment or rights of local indigenous peoples? In the present book the authors – a biologist and an agricultural economist- describe a global and complex tropical sector, for which the interests of the many different stakeholders are often antagonistic. Oil palm has become emblematic of recent changes in North-South relationship in agricultural development. Indeed, palm oil is produced and consumed in the South; its trade is driven by emerging countries, although the major part of its transformations is made in the North that still hosts the largest multinational agro industries. It is also in the North that the sector is challenged on ethical and environmental issues. Public controversy over palm oil is often opinionated and it is fed by definitive and sometimes exaggerated statements. Researchers are conveying a more nuanced speech, which is supported by scientific data and a shared field experience. Their work helps in building a more balanced view, moving attention to the South, the region of exclusive production and major consumption of palm oil.

Indonesia’'s forests make up one of the world’s most biologically diverse ecosystems. They have long been harvested by local people to meet their daily needs. Since the 1970s, a combination of demographic, economic and policy factors has driven forest exploitation at the industrial scale and resulted in growing deforestation. Key factors behind the forest loss and land use change in present-day Indonesia are the expansion of oil palm, plywood production and pulp and paper industries. Oil palm has been one of the fastest-growing sectors of the Indonesian economy, increasing from less than 1 million hectares in 1991 to 8.9 million hectares in 2011. The plywood and pulp and paper industries have also expanded significantly since the log export ban in 1985. All three sectors have contributed to deforestation. Several measures are being taken to reduce the loss of tropical forests in Indonesia. These measures are driven by growing global concern about the impact of deforestation on biodiversity and global warming and the Indonesian government’s commitment to reduce greenhouse gas emissions. A major policy initiative revolves around developing renewable energy from biomass that can be sourced from oil palm, sugar, cassava, jatropha and timber plantations. This paper analyzes these measures and assesses the conditions under which they may be most effective.