ACEH AND THE ARCHIPELAGO ECONOMY

The document examines the economic risks of deforestation in Aceh, specifically linking palm oil expansion on peatlands to increased flooding and potential 'stranded assets'. It argues that increasing agricultural productivity for palm oil and rice can meet government production targets while reducing the need for land conversion and protecting the Leuser Ecosystem.

• The frequency of flooding events in Aceh is increasing, with a strong correlation found between flooding and the percentage of monoculture palm oil plantations in districts, particularly in western Aceh areas on or near peatlands.
• Direct costs of flooding in Aceh are conservatively estimated at US $27 million per year, based on data from 2010 to 2015 which recorded 1,209 unique flooding events.
• Palm oil plantations on peatlands in western Aceh face a risk of becoming 'environmentally stranded assets' due to land subsidence and permanent inundation, which could lead to losses in the billions of dollars.
• Under a business-as-usual scenario, meeting palm oil production targets would require converting at least 220,000 hectares of land, but increasing productivity to the national industry average (3.67 t/ha) would reduce the required land to 41,000 hectares less than the current area.
• Rice production targets can be met with significantly less land conversion if productivity increases; a 1% annual increase in yield between 2015 and 2019 would more than halve the land required for conversion.
• There is currently insufficient suitable land in Aceh to meet 2019 palm oil targets under business-as-usual productivity (2.1 t/ha) if a commitment to zero deforestation is maintained.
• The Leuser Ecosystem, covering 2.6 million hectares, is at high risk of conversion under business-as-usual scenarios, with 115,000 hectares identified as potentially viable for palm oil cultivation.

APA

Leggett, M., Lubis, M. I., Nuruliawati, & Pusparini, W. (n.d.). ACEH AND THE ARCHIPELAGO ECONOMY. Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2016/07/ACEH-Briefing-Note_eng_web.pdf

Chicago

Leggett, Matt, Muhammad I. Lubis, Nuruliawati, and Wulan Pusparini. ACEH AND THE ARCHIPELAGO ECONOMY. Climate and Development Knowledge Network, n.d. http://cdkn.org/wp-content/uploads/2016/07/ACEH-Briefing-Note_eng_web.pdf.

Wikipedia

{{cite report |last1=Leggett |first1=Matt |last2=Lubis |first2=Muhammad I. |last3=Nuruliawati |last4=Pusparini |first4=Wulan |title=ACEH AND THE ARCHIPELAGO ECONOMY |publisher=Climate and Development Knowledge Network |url=http://cdkn.org/wp-content/uploads/2016/07/ACEH-Briefing-Note_eng_web.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{leggettndaceh, author = {Leggett, Matt and Lubis, Muhammad I. and Nuruliawati and Pusparini, Wulan}, title = {{ACEH AND THE ARCHIPELAGO ECONOMY}}, institution = {Climate and Development Knowledge Network}, url = {http://cdkn.org/wp-content/uploads/2016/07/ACEH-Briefing-Note_eng_web.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }