Much of the controversy surrounding the expansion of oil palm plantations relates to the destruction of forests and peatlands, which not only are valuable ecosystems but also absorb large amounts of carbon from the atmosphere. However, it is possible for oil palm growers to meet the demands for increased production as well as their obligations to minimise forest clearance by increasing yields and expanding into previously degraded lands. In the report Reducing agricultural expansion into forests in Central Kalimantan-Indonesia: Analysis of implementation and financing gaps, Boer et al. present several different scenarios for how these strategies can be employed in Indonesia so that businesses can find pathways for environmentally sustainable growth and different levels of government can meet targets for increasing production and limiting forest clearance.  

  • Intensification typically involves adapting pruning strategies and fertiliser and pesticide use and planting more productive seeds to increase yields. More techniques for increasing yields can be found in the document Yield Intensification in Oil Palm Plantations through Best Management Practice.
  • Plantation expansion depends on the land available, but it is usually easier for palm oil companies to obtain larger tracts of continuous forested land for cultivation because degraded areas can be fragmented and there are more likely to be previous community claims to the land.

What are the potential impacts of intensification?

Oil palm intensification can disrupt key ecosystem services that underpin successful production. Pollination, soil stabilisation, water filtration, nutrient cycling, pest control, microclimate maintenance, and hosting of native species can all be greatly impaired by intensification. This is described in further detail in the study Crops, trees, and birds: Biodiversity change under agricultural intensification in Uganda’s farmed landscapes.

Opportunities for change

The working paper How to Identify Degraded Land for Sustainable Palm Oil in Indonesia from the World Resources Institute (WRI) demonstrates a quick and cost-effective method of identifying suitable degraded land for oil palm expansion.