Indonesian palm oil exports and deforestation

The document analyzes the environmental impact of Indonesia's palm oil sector, noting a general decline in deforestation over the last decade despite continued production growth. It highlights that while zero-deforestation commitments are widespread, they have not significantly lowered deforestation intensity compared to non-committed exporters. The analysis also emphasizes the critical role of peatlands in driving the sector's greenhouse gas emissions and the shift in export markets toward China and domestic use.

• Deforestation for industrial palm oil in Indonesia decreased significantly over the last decade, falling to 32,406 hectares per year between 2018–2022, which is only 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.
• Zero-deforestation commitments (ZDCs) are common, with over 85% of observed palm oil exports traded by companies with such commitments, yet they do not result in significantly lower deforestation intensity. Exporters with ZDCs had an annual deforestation intensity of 0.27 ha per 1,000 tonnes, compared to 0.23 ha for those without ZDCs.
• Greenhouse gas emissions from industrial palm oil production in Indonesia averaged 220 million tonnes of carbon dioxide equivalent annually between 2015 and 2022, representing nearly one-fifth of the country's total 2022 emissions of 1.23 gigatonnes. Nearly 92% of these emissions are attributed to peatland subsidence and fires on drained peatlands, despite peatlands accounting for only 14% of plantations.
• Export market dynamics have shifted; China became the largest importer of Indonesian palm oil by 2022, increasing its share from 11% in 2013 to 14%. Simultaneously, domestic consumption grew from 32% of production in 2018 to 44% in 2022, driven by government policies for biodiesel blending and downstreaming.
• Deforestation for industrial palm oil has been geographically concentrated, with four provinces in Kalimantan accounting for 72% of all such deforestation in Indonesia between 2018–2022.

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} }