Do agricultural incentives to grow Oil Palm Drive forest losses in Indonesia?
5. Discussion Our results show that agricultural incentives to grow oil palm and election incentives reinforce each other and significantly drive forest losses in Indonesia. Deforestation increases by 4.2% in years with high price exposure levels and by 7.1% in years before mayoral district elections.
Why is the palm oil trade important for Indonesia?
Asep Asmara, Director of Export Agriculture and Forestry Products at the Trade Ministry¡¯s Directorate General of Foreign Trade, discussed the importance of the palm oil trade for Indonesia, noting that the sector directly employed some 5.3 million people and provided incomes for 21.2 million farmers and their families.
How is sustainability affecting Indonesia’s palm oil exports?
From food consumption to travel and leisure, sustainability is increasingly driving public opinion, which in turn influences governments. Arguably, this shift in attitude has impacted one of Indonesia¡¯s largest exports: palm oil.
Which country produces the most palm oil in the world?
During the past two decades, Indonesia became the primary global producer of palm oil. 1 Home to one of the largest remaining tropical rain-forests in the world, Indonesia has also experienced accelerated deforestation dynamics, with a 13% loss of forests since 2000 (Austin et al., 2017; Hansen et al., 2013).