Abstract
Indonesia is the world’s leading producer of palm oil, responsible for over 50% of global supply. This sector is a cornerstone of Indonesia’s economy, contributing between 13% and 15% of total export revenue and providing employment for millions, particularly in rural areas. As a result, palm oil plays a vital role in driving local and national development.
However, palm oil expansion has also led to significant environmental challenges. Over the past two decades, it is estimated that around over 3 million hectares of forest have been lost due to palm oil-related deforestation, contributing to Indonesia’s high deforestation rates. This deforestation affects biodiversity, endangers key species, and contributes to greenhouse gas emissions due to the conversion of carbon-rich peatlands.