Toward Green Agriculture:

the case of oil palm development

Images: http://www.post2015hlp.org/the-report/; http://www.thejakartapost.com/news/2014/02/13/40-plantations-get-green-certificates.html

Presented at The International Oil Palm Conference 2014

17-19 June 2014, BNDCC, Bali, Indonesia

Fitrian Ardiansyah
Crawford School of Public Policy
The Australian National University
fitrian.ardiansyah@anu.edu.au

and

Pelangi Indonesia
http://www.pelangi.or.id
http://fitrianardiansyah.com

Presentation framework

1. The global and Indonesias challenges and the role

of agriculture development
2. Toward green agriculture
3. The palm oil case
4. The journey of sustainable palm oil

Global challenges
Source: United Nations (2013, p. 32-49).

1.3

out of
people
lives in extreme
poverty

people do not have

access to electricity.

5% by 2030.

The number of
unemployed people
has risen by about

The world will need

about

50%

28

more food by 2030.

The world loses about

billion

million since

2008.

5.2

million

hectares of forest per year to deforestation.

Drivers: growing global demand for food,
animal feed, fuel and fiber.

Global challenges: agriculture

Fig 1. World Population Projection

LAC

2,000

South Asia

1,000

year

year

2050

2030

2015

2006

2000

East Asia
Developed
countries
4

2050

3,000

2030

4,000

Near East/North
Africa

2015

5,000

2005/07

Sub-Saharan
Africa

6,000

1970

millions (people)

7,000

1990/92

Developing
countries

8,000

3,500
3,300
3,100
2,900
2,700
2,500
2,300
2,100
1,900
1,700
1989/91

9,000

kcal/person/day

World

1979/81

10,000

Fig 2. Per capita Food

Consumption

1969/71

Dealing with global poverty and hunger

Note: The 2015, 2030 and 2050 figures are projection; LAC (Latin America and
the Caribbean). Source: Alexandratos and Bruinsma (2012, p. 23) and UNDESA
(2009, p. 1).

Global challenges: agriculture

Note: The authors calculation. Source: Alexandratos and Bruinsma (2012, p. 23) and UNDESA (2009, p. 1).

Fig 3. Total Food Consumption

World

10,200

Developing countries

trillion calories

8,200

Sub-Saharan Africa
6,200

Near East / North Africa

4,200

Latin America and the

Caribbean
South Asia

2,200

East Asia

2050

2030

2015

2006

1970

200

Developed countries

year

Challenging demand, considering the limitation of land

and natural resources

FAO (2011): agricultural production has increased

but negative impacts are wide-spread

3X
5

Global challenges: agriculture

Note: The authors calculation. Source: Alexandratos and Bruinsma (2012, p. 44) and UNDESA (2009, p. 1).

Fig 4. Changes in Global Food

Commodity Composition

Roots &
tubers

250
200

Sugar & sugar

crops

150

Pulses

trillion calories

300

World

50
40
30

Developing
countries

20
10

50

Meat

2050

2030

2005/07

Vegetable oils

1999/2001

100

1969/71

Developed
countries

year

year

2050

2030

2005/07

1999/2001

1989/91

1979/81

1969/71

trillion calories

60

Cereals

350

Fig 5. Total Vegetable Oil

Consumption

Milk & dairy

Other
6

Development challenges &

emerging economies
High income: OECD
Low income
Lower middle income
Middle income

30000

20000
10000

2009

2007

2005

2003

2001

1999

1997

1995

1993

1991

1989

1987

1985

1983

1981

1975

1973

0
1971

Heavily dependent on naturebased economies (e.g. forest,

estate crops, plantations, coal, gas,
etc.)

1979

below the rich countries

40000

1977

increasing but still far

Billion US$

GDP

Fig 6. GDP Trend for Groups of Countries

(1971-2010)

50000

Year

Images: Ardiansyah et al. (2013) from IEA, the World

Bank and CDIAC data; GRID-Arendal UNEP (2009)
http://www.grida.no/graphicslib/detail/changingglobal-forest-cover_b110

Fig 7. Global forest cover change

Consumption (000 tons)

Net (000 tons)

Areas harvested (000 ha)

50,000

12,300

40,000

12,250
30,000

12,200
12,150

20,000

12,100

10,000

12,050
0

12,000
2021-22

2020-21

2019-20

2018-19

2107-18

2016-17

2015-16

2014-15

2013-14

2012-13

-10,000
2011-12

11,950
2010-11

Area harvested (000 ha)

12,350

Production (000 tons)

Rice produced and consumed (000 tons)

Indonesias context: agriculture

Year

Fig 8. Indonesias Rice Production and Consumption (2010-2022)

Images: Wailes & Chavez (2012)

Indonesias context: agriculture

Fig 9. Annual Average of Paddy Fields Impacted
by Diseases, Floods and Drought (2007-2011)
300,000
Impacted areas (ha): pest and
diseases, floods and drought

200,000

Crop failure (ha): pest and

diseases, floods and drought

150,000
100,000
50,000
0

Aceh
North Sumatra
West Sumatra
Riau
Jambi
South Sumatera
Bengkulu
Lampung
Bangka Belitung Archipelago
Riau Archipelago
Jakarta
West Java
Central Java
Yogyakarta
East Java
Banten
Bali
West Nusa Tenggara
East Nusa Tenggara
West Kalimantan
Central Kalimantan
South Kalimantan
East Kalimantan
North Sulawesi
Central Sulawesi
South Sulawesi
Southeast Sulawesi
Gorontalo
West Sulawesi
Maluku
North Maluku
West Papua
Papua

Impacted areas (ha)

250,000

Source: Directorate of Food Crops (2013)

Agriculture sector:
Rice : consumption >
production in 2020
Addressing land
availability
Coping with climate
impacts: water
scarcity, pest,
diseases, floods
Improving farmer
capacity

Province

Toward green agriculture

The good apples of
Fig 10. Government Spending on COP-19?
Agriculture

Transformation of farming
practices, including:

Transforming production &

consumption patterns
Increase in spending &

partnership that support

agriculture & landscape
innovation

35

percentage (%)

30
25
20
15
10

1980

2004
U-GDP

T-GDP

A-GDP

U-PSGDP

T-PSGDP

A-PSGDP

U-PS

T-PS

A-PS

Soil restoration &

enhancement;
Soil erosion reduction &
improvement of water use
Chemical pesticide and
herbicide use reduction (e.g.
IPM);
Ecosystem management
Food spoilage & loss
reduction

Categories
Note: A (agriculture-based countries), T (transforming
countries), U (urbanised countries), PS (public spending on
agriculture as a share of total public spending [%]), PSGDP
(public spending on agriculture as a share of agricultural GDP
[%]), GDP (share of agriculture in GDP [%]). Source: World Bank
(2007, p. 41).

10

25000

Fig 11. Indonesia palm oil exports

20000
15000

Exports of palm oil (000 tons)

10000
5000

year

2014

2012

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

1978

1976

1974

1972

1970

1968

1966

0
1964

exports of palm oil (000

tonnes)

The palm oil case

WTF? Where is The Finance?

Source: Index Mundi (2014)

PROS (+):
Employment: but depending on the employment intensity of the plantation as
well as the land uses that are being replaced
Local livelihoods: cattle, etc.
CONS (-):
Land conflicts (i.e. tenure and land rights issues)
11
Deforestation & water issues (pollution & drought)

The journey of sustainability:

RSPO

Source: RSPO (2014)

12

The journey of sustainability:

Indonesia

Image: http://commodities.globalforestwatch.org/#v=suitability&e=9453786%2C-1547630%2C14810492%2C1005979

Magnifying the intake of ISPO (& its system); aligning with RSPO
Improving land use/spatial planning
Legal reforms & fiscal/financial incentives creation
Increasing productivity

13

Options for expansion

without deforestation
(i)

reclassification of forests in non-forestry

development estates (Area Penggunaan Lain
or APL) to protection or conservation zone
(revision of spatial plans);
(ii) reclassification of remaining forests and
peat lands which are not yet licensed to
protection or conservation (no new licenses
on peat and a revision of spatial plans); and
(iii) relocate licenses or parts of licenses where
companies have not yet initiated operations
on the ground, from forests and peat lands
to mineral soils (land swapping using barren
or degraded lands). Land swapping is in fact
a good alternative but legal intervention/
reforms may be needed.

Image: WRI (2014)

Images:
forestclimatechange.org;

Source: Bappenas (2009, p. 8)

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The future: partnership is key!

Images: UN fair play info (2010), JFCC (2010),

www.ceopalmoil.com
Antara Foto, Kementerian Linngkungan Hidup

Images:
forestclimatechange.org;

15

Thank you

Terima kasih
Fitrian Ardiansyah, fitrian.ardiansyah@anu.edu.au
http://fitrianardiansyah.com
http://www.pelangi.or.id
@EcoFitrian

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