Achieving a high-productivity, sustainable palm oil sector in Indonesia: a landscape management approach

The paper argues that while supply chain traceability is a necessary first step, it is insufficient for achieving large-scale sustainability. Instead, it advocates for a 'landscape management approach'—managing agricultural production and ecosystem protection across connected areas of land rather than on a plantation-by-plantation basis. This strategy involves five key steps: defining landscape boundaries, partnering with government and business, allocating land to its highest value use, increasing productivity, and monitoring results. The document highlights a pilot project in Sei Mangkei, North Sumatra, and identifies significant opportunities to utilize degraded lands in North Sumatra and Central Kalimantan to reduce deforestation pressure.

• Supply chain traceability is an essential initial step but cannot alone deliver net positive environmental and livelihood impacts because it only manages benefits on a plantation-by-plantation basis.
• A landscape management approach involves partnerships to manage agricultural production and ecosystem protection across connected areas of land at scale, rather than managing smaller, independent patches of land.
• The Sei Mangkei landscape management pilot in North Sumatra targets five districts: Simalungun, Serdang Bedagai, Asahan, Labuan Batu Utara, and Batu Bara. These areas contain over 40% of North Sumatra's oil palm, 25% of its peat soils, and 10% of its forests (exceeding 250,000 hectares).
• There are substantial opportunities to use degraded lands within forest estates for more productive use or protection, specifically an estimated 1.1 million hectares in North Sumatra and 5.3 million hectares in Central Kalimantan.
• Smallholder farmers are critical to the sector's transformation as they manage approximately 40% of oil palm plantations in Indonesia.
• A significant replanting challenge exists in North Sumatra, as most smallholder plantations were established in the late 1990s, with roughly two-thirds requiring replanting before 2020.
• The landscape management approach requires aligning fiscal frameworks, such as adjusted tax frameworks, to incentivize high productivity and discourage development in high-value ecosystems.

APA

Climate Policy Initiative (2015). Achieving a high-productivity, sustainable palm oil sector in Indonesia: a landscape management approach. https://www.climatepolicyinitiative.org/wp-content/uploads/2015/06/Achieving-a-high-productivity-sustainable-palm-oil-sector-in-Indonesia-a-landscape-management-approach.pdf

Chicago

Climate Policy Initiative. Achieving a high-productivity, sustainable palm oil sector in Indonesia: a landscape management approach. 2015. https://www.climatepolicyinitiative.org/wp-content/uploads/2015/06/Achieving-a-high-productivity-sustainable-palm-oil-sector-in-Indonesia-a-landscape-management-approach.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Achieving a high-productivity, sustainable palm oil sector in Indonesia: a landscape management approach |date=June 2015 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2015/06/Achieving-a-high-productivity-sustainable-palm-oil-sector-in-Indonesia-a-landscape-management-approach.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2015achieving, author = {{Climate Policy Initiative}}, title = {{Achieving a high-productivity, sustainable palm oil sector in Indonesia: a landscape management approach}}, institution = {Climate Policy Initiative}, year = {2015}, month = jun, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2015/06/Achieving-a-high-productivity-sustainable-palm-oil-sector-in-Indonesia-a-landscape-management-approach.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }