An Indonesian worker handles palm oil seeds at a plantation in Pelalawan, Riau province on Sumatra island. Photo: AFP/ Adek Berry
Indonesia needs to put its palm oil industry on a more sustainable path. Photo: Asia Times Files / AFP / Adek Berry

Under the relentless sun, I survey the endless rows of oil palm trees stretching out before me.

This simple plantation, cultivated by smallholders three decades ago, is both a source of pride and a never-ending struggle – a microcosm of the complex challenges smallholder agrarians face in Indonesia.

For generations, farmers have toiled in these fields, their livelihoods largely dependent on the fate of these palm trees originating from the Guinea coast of West Africa.

The fruit they produce has become a lifeline for Indonesia, providing rural communities with a vital source of income while propelling the nation into one of the world’s largest palm oil producers.

However, as global demand for this versatile commodity rises, a heated debate has broken out about its sustainability and environmental impacts.

On one side, vocal conservation advocates denounce the devastation caused by rampant deforestation to make way for palm plantations, resulting in the loss of habitats for endangered species like the Sumatran tiger and orangutan.

On the other hand, there is the harsh reality of poverty and economic sustainability that shapes the lives of millions of smallholders. For them, the choice between preserving pristine rainforests or feeding their families is not just a philosophical issue but a daily struggle for basic survival.

The numbers paint a clear picture. According to the Indonesian Ministry of Agriculture, smallholders account for 35% of total national palm oil production. Their modest farms, most no larger than a few hectares, collectively contribute billions of dollars to the national economy each year.

However, the smallholders are caught in limbo, torn between the demands of global markets and the urgent need to protect the ecosystems on which their livelihoods depend.

Many of us have witnessed firsthand the encroachment of large-scale plantations on green and lush rainforest areas – an insatiable appetite for land fueled by ever-increasing demand for palm oil.

When these industrial titans cut down trees in large numbers, they leave behind damaged landscapes, destroying rich biodiversity in their wake.

It’s thus unfair to put disproportionate blame on smallholders, whose struggles are rooted in a complex web of socioeconomic factors that extend well beyond the boundaries of their lands.

Poverty plagues many rural families who rely on oil palm cultivation for their livelihoods. Limited access to education, healthcare and other sources of income means that these families may feel compelled to expand their plantations, even if it means encroaching on protected areas.

It’s important to note, however, that while some smallholders may contribute to the deforestation, the scale pales in comparison to the large-scale plantations.

Moreover, the lack of clear land ownership rights and inadequate legal protection leaves smallholders susceptible to exploitation by middlemen and companies. The farmers often have to sell their harvests at prices dictated by those higher up on the supply chain.

However, there is some hope amid these challenges. The movement towards sustainable palm oil production is gaining momentum thanks to the efforts of government agencies, NGOs and certain forward-thinking industry players.

Initiatives such as the Roundtable on Sustainable Palm Oil (RSPO) have established strict standards for responsible cultivation, which cover environmental protection, social responsibility and economic viability. By adhering to these guidelines, smallholders can access broader markets and command higher prices for their certified sustainable palm oil.

Yet, the path toward sustainability is long and arduous, extending beyond the boundaries of their plantations. A recent study by WWF Indonesia identified several hurdles to the implementation of the RSPO among smallholders, including a lack of technical knowledge, financial support, price stability and effective audit mechanisms.

The opportunity for transformation, however, is there. By investing in programs that empower smallholders with technical training and strengthen their land tenure rights, they can be equipped with the tools to better strike the balance between sustainability and survival.

This transformation will require collaboration and compromise. It is essential to bridge the gap between large corporations, environmental activists and the farmers often caught in the middle who form the backbone of Indonesia’s palm industry.

As I gaze at the vast expanse of green canopy before me, I am reminded of the delicate balance we must strike between progress and preservation. The future of Indonesia’s palm oil industry, as well as the fate of precious rainforests, hinges on the ability to create pathways that both respect the needs of communities and preserve our natural heritage.

That will require a strong commitment to creative solutions, a collective and cooperative determination of all stakeholders, and a willingness to confront long-standing inequalities. Only then can we find a path that ensures palm oil production can sustain local communities while also preserving the planet.

Indonesia’s destiny lies in the hands of its smallholders, a future where sustainability and survival no longer need to be mutually exclusive but rather are interwoven into a tapestry of hope and prosperity for generations to come.

Mohammad Yunus is with the Faculty of Science, Khon Kaen University, Thailand

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