Indonesian palm oil exports and deforestation

This research paper analyzes the relationship between Indonesia's palm oil production, its export markets, and the resulting deforestation and greenhouse gas emissions, utilizing Trase supply chain data.

• Indonesia is the world's largest palm oil exporter, providing 54% of global exports with a 2023 production of 47 million tonnes of crude palm oil. The industry is a significant economic driver, representing 4.5% of GDP and employing over 16.2 million people directly and indirectly.
• Deforestation for industrial palm oil decreased significantly over the last decade, falling to 32,406 hectares per year between 2018–2022, which is 18% of the peak seen in 2008–2012. However, there was a slight reversal in 2022 with an 18% increase in industrial oil palm-driven deforestation. Despite the overall decline, 2.4 million hectares of intact forest remain within oil palm concessions.
• Deforestation is geographically concentrated, with four provinces in Kalimantan accounting for 72% of all palm oil-related deforestation in Indonesia from 2018–2022. Sumatra saw a 3.7-fold increase in industrial palm oil-driven deforestation in 2022 compared to 2020, with much of the activity clustered in North Sumatra.
• Zero-deforestation commitments (ZDCs) are widespread, with over 85% of observed exports traded by companies with such commitments. However, deforestation intensity is similar between exporters with ZDCs (0.27 ha per 1,000 tonnes) and those without (0.23 ha per 1,000 tonnes), though both are far lower than the 2012 sector-wide intensity of 8.7 ha per 1,000 tonnes.
• Export markets have shifted, with China becoming the largest importer of Indonesian palm oil (14% share in 2022), while shares for India (12%) and the EU (10%) declined from 2013 levels. Domestic consumption increased from 32% of production in 2018 to 44% in 2022, driven by government policies on biodiesel blending and downstreaming.
• Industrial palm oil production emitted an annual average of 220 million tonnes of CO2 equivalent between 2015 and 2022, nearly one-fifth of Indonesia's 2022 total annual emissions of 1.23 gigatonnes. Although only 14% of plantations (2.2 million ha) are on peatlands, peatland subsidence and fires accounted for nearly 92% of the sector's average annual GHG emissions for 2015–2022.

APA

Benedict, J. J., & Heilmayr, R. (2024). Indonesian palm oil exports and deforestation. Stockholm Environment Institute. https://www.sei.org/features/indonesian-palm-oil-exports-and-deforestation/

Chicago

Benedict, Jason Jon, and Robert Heilmayr. Indonesian palm oil exports and deforestation. Stockholm Environment Institute, 2024. https://www.sei.org/features/indonesian-palm-oil-exports-and-deforestation/.

Wikipedia

{{cite report |last1=Benedict |first1=Jason Jon |last2=Heilmayr |first2=Robert |title=Indonesian palm oil exports and deforestation |publisher=Stockholm Environment Institute |date=8 October 2024 |url=https://www.sei.org/features/indonesian-palm-oil-exports-and-deforestation/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{benedict2024indonesian, author = {Benedict, Jason Jon and Heilmayr, Robert}, title = {{Indonesian palm oil exports and deforestation}}, institution = {Stockholm Environment Institute}, year = {2024}, month = oct, url = {https://www.sei.org/features/indonesian-palm-oil-exports-and-deforestation/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }