IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v8y2019i4p56-d218362.html
   My bibliography  Save this article

Expansion of Oil Palm Plantations in Indonesia’s Frontier: Problems of Externalities and the Future of Local and Indigenous Communities

Author

Listed:
  • Agus Andrianto

    (Center for International Forestry Research (CIFOR), Bogor 16115, Indonesia)

  • Heru Komarudin

    (Center for International Forestry Research (CIFOR), Bogor 16115, Indonesia)

  • Pablo Pacheco

    (Center for International Forestry Research (CIFOR), Bogor 16115, Indonesia
    World Wildlife Fund (WWF), Washington, DC 20037, USA)

Abstract

The expansion of oil palm plantations in Papua province, Indonesia, involves the conversion of forests, among other land types in the landscapes, which are a source of clan members’ livelihoods. The way in which this expansion occurs makes it necessary to understand the factors associated with why companies look for frontier lands and what externalities are generated during both the land acquisition and plantation development periods. Using a spatial analysis of the concession areas, along with data from household surveys of each clan from the Auyu, Mandobo, and Marind tribes who release land to companies, we find that investors are motivated to profit from timber harvested from the clearing of lands for plantations, activity that is facilitated by the local government. Land acquisition and plantation development have resulted in externalities to indigenous landowners in the form of time and money lost in a series of meetings and consultations involving clan members and traditional elders. Other externalities include the reduced welfare of people due to loss of livelihoods, and impacts on food security.

Suggested Citation

  • Agus Andrianto & Heru Komarudin & Pablo Pacheco, 2019. "Expansion of Oil Palm Plantations in Indonesia’s Frontier: Problems of Externalities and the Future of Local and Indigenous Communities," Land, MDPI, vol. 8(4), pages 1-16, March.
    • Handle: RePEc:gam:jlands:v:8:y:2019:i:4:p:56-:d:218362
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/8/4/56/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/8/4/56/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Larkin, Sherry L. & Huffaker, Ray G. & Clouser, Rodney L., 2013. "Negative Externalities and Oil Spills: A Case for Reduced Brand Value to the State of Florida," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(3), pages 389-399, August.
    2. Bunkus, Ramona & Theesfeld, Insa, 2018. "Land Grabbing In Europe?," 58th Annual Conference, Kiel, Germany, September 12-14, 2018 275859, German Association of Agricultural Economists (GEWISOLA).
    3. Larkin, Sherry L. & Huffaker, Ray G. & Clouser, Rodney L., 2013. "Negative Externalities and Oil Spills: A Case for Reduced Brand Value to the State of Florida," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45, pages 1-11, August.
    4. Obidzinski, Krystof & Dermawan, Ahmad & Andrianto, Agus & Komarudin, Heru & Hernawan, Dody, 2014. "The timber legality verification system and the voluntary partnership agreement (VPA) in Indonesia: Challenges for the small-scale forestry sector," Forest Policy and Economics, Elsevier, vol. 48(C), pages 24-32.
    5. Ramona Bunkus & Insa Theesfeld, 2018. "Land Grabbing in Europe? Socio-Cultural Externalities of Large-Scale Land Acquisitions in East Germany," Land, MDPI, vol. 7(3), pages 1-21, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stephany Iriana Pasaribu & Frank Vanclay, 2021. "Children’s Rights in the Indonesian Oil Palm Industry: Improving Company Respect for the Rights of the Child," Land, MDPI, vol. 10(5), pages 1-21, May.
    2. Arya Hadi Dharmawan & Dyah Ita Mardiyaningsih & Heru Komarudin & Jaboury Ghazoul & Pablo Pacheco & Faris Rahmadian, 2020. "Dynamics of Rural Economy: A Socio-Economic Understanding of Oil Palm Expansion and Landscape Changes in East Kalimantan, Indonesia," Land, MDPI, vol. 9(7), pages 1-20, July.
    3. Rowland, Dominic & Zanello, Giacomo & Waliyo, Edy & Ickowitz, Amy, 2022. "Oil palm and gendered time use: A mixed-methods case study from West Kalimantan, Indonesia," Forest Policy and Economics, Elsevier, vol. 137(C).
    4. Toumbourou, Tessa D. & Dressler, Wolfram H. & Werner, Tim T., 2022. "Plantations enabling mines: Incremental industrial extraction, social differentiation and livelihood change in East Kalimantan, Indonesia," Land Use Policy, Elsevier, vol. 119(C).
    5. Lara M. Lundsgaard-Hansen & Christoph Oberlack & Glenn Hunt & Flurina Schneider, 2022. "The (In)Ability of a Multi-Stakeholder Platform to Address Land Conflicts—Lessons Learnt from an Oil Palm Landscape in Myanmar," Land, MDPI, vol. 11(8), pages 1-40, August.
    6. Christine Richter & Marthe Derkzen & Annelies Zoomers, 2020. "Land Governance from a Mobilities Perspective," Land, MDPI, vol. 9(2), pages 1-9, January.
    7. Putraditama, Andika & Kim, Yeon-Su & Sánchez Meador, Andrew Joel, 2019. "Community forest management and forest cover change in Lampung, Indonesia," Forest Policy and Economics, Elsevier, vol. 106(C), pages 1-1.
    8. Tran Van Ty & Kim Lavane & Phan Chi Nguyen & Nigel K. Downes & Nguyen Dinh Giang Nam & Huynh Vuong Thu Minh & Pankaj Kumar, 2022. "Assessment of Relationship between Climate Change, Drought, and Land Use and Land Cover Changes in a Semi-Mountainous Area of the Vietnamese Mekong Delta," Land, MDPI, vol. 11(12), pages 1-20, November.
    9. Rochgiyanti Rochgiyanti & Deasy Arisanty & Karunia Puji Hastuti, 2023. "Fishing Tourism of Conflict Area in South Kalimantan," Technium Social Sciences Journal, Technium Science, vol. 39(1), pages 516-528, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Agnieszka Stacherzak & Maria Hełdak & Ladislav Hájek & Katarzyna Przybyła, 2019. "State Interventionism in Agricultural Land Turnover in Poland," Sustainability, MDPI, vol. 11(6), pages 1-13, March.
    2. Sattwick Dey Biswas, 2021. "Smith’s paradox of price and negotiation: Empirical evidence from India," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(4), pages 465-484, December.
    3. Tomasz Berbeka & Tomasz Szuk & Aleksandra Plonka, 2021. "Land Concentration Processes: Polish Case Study in the Light of Selected EU Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 325-337.
    4. Shirzad, Hossein & Barati, Ali Akbar & Ehteshammajd, Shaghayegh & Goli, Imaneh & Siamian, Narges & Moghaddam, Saghi Movahhed & Pour, Mahdad & Tan, Rong & Janečková, Kristina & Sklenička, Petr & Azadi,, 2022. "Agricultural land tenure system in Iran: An overview," Land Use Policy, Elsevier, vol. 123(C).
    5. Ruxandra Malina Petrescu-Mag & Hamid Rastegari Kopaei & Dacinia Crina Petrescu, 2021. "What Drives Landowners to Resist Selling Their Land? Insights from Ethical Capitalism and Landowners’ Perceptions," Land, MDPI, vol. 10(3), pages 1-21, March.
    6. Petrescu-Mag, Ruxandra Malina & Petrescu, Dacinia Crina & Todoran, Silviu Ciprian & Petrescu-Mag, Ioan Valentin, 2021. "Us and them. Is the COVID-19 pandemic a driver for xenophobia in land transactions in Romania?," Land Use Policy, Elsevier, vol. 103(C).
    7. von Hobe, Cord-Friedrich & Mußhoff, Oliver, 2020. "On the effectiveness of restricted tenders as a form of policy intervention on agricultural land markets," 60th Annual Conference, Halle/ Saale, Germany, September 23-25, 2020 305592, German Association of Agricultural Economists (GEWISOLA).
    8. Lucia Palšová & Anna Bandlerová & Zina Machničová, 2021. "Land Concentration and Land Grabbing Processes—Evidence from Slovakia," Land, MDPI, vol. 10(8), pages 1-16, August.
    9. Ramona Bunkus & Ilkhom Soliev & Insa Theesfeld, 2020. "Density of resident farmers and rural inhabitants’ relationship to agriculture: operationalizing complex social interactions with a structural equation model," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(1), pages 47-63, March.
    10. João-Pedro Ferreira & Bijeta Bijen Saha & Gabriel Cardoso Carrero & Jinwon Kim & Christa Court, 2023. "Impacts of red tide in peer-to-peer accommodations: A multi-regional input-output model," Tourism Economics, , vol. 29(3), pages 812-834, May.
    11. Margherita Masi & Yari Vecchio & Gregorio Pauselli & Jorgelina Di Pasquale & Felice Adinolfi, 2021. "A Typological Classification for Assessing Farm Sustainability in the Italian Bovine Dairy Sector," Sustainability, MDPI, vol. 13(13), pages 1-14, June.
    12. von Hobe, Cord-Friedrich & Mußhoff, Oliver, 2020. "On the effectiveness of restricted tenders as a form of policy intervention on agricultural land markets," 60th Annual Conference, Halle/ Saale, Germany, September 23-25, 2020 305592, German Association of Agricultural Economists (GEWISOLA).
    13. Dominika Milczarek-Andrzejewska & Jerzy Wilkin & Renata Marks-Bielska & Adam Czarnecki & Anna Bartczak, 2020. "Konflikty o ziemię rolną – perspektywa ekonomiczna," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 5-31.
    14. Marii Rasva & Evelin Jürgenson, 2022. "Europe’s Large-Scale Land Acquisitions and Bibliometric Analysis," Agriculture, MDPI, vol. 12(6), pages 1-13, June.
    15. Vasile Burja & Attila Tamas-Szora & Iulian Bogdan Dobra, 2020. "Land Concentration, Land Grabbing and Sustainable Development of Agriculture in Romania," Sustainability, MDPI, vol. 12(5), pages 1-19, March.
    16. José Luis Vicente-Vicente & Cristina Quintas-Soriano & María D. López-Rodríguez, 2022. "A Transformative (r)Evolution of the Research on Agriculture through Fostering Human-Nature Connectedness—A Special Issue Editorial," Agriculture, MDPI, vol. 12(4), pages 1-7, April.
    17. Theesfeld, Insa & Soliev, Ilkhom & Bunkus, Ramona, 2020. "Social Dimensions of Agricultural Land Transactions in Germany: An Analysis with a Structural Equation Model," 60th Annual Conference, Halle/ Saale, Germany, September 23-25, 2020 305582, German Association of Agricultural Economists (GEWISOLA).
    18. Nicoleta Valentina Florea & Mircea Constantin Duică & Constantin Aurelian Ionescu & Anișoara Duică & Mihaela Cristina Onica Ibinceanu & Sorina Geanina Stanescu, 2021. "An Analysis of the Influencing Factors of the Romanian Agricultural Output within the Context of Green Economy," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    19. Petrescu, Dacinia Crina & Hartel, Tibor & Petrescu-Mag, Ruxandra Malina, 2020. "Global land grab: Toward a country typology for future land negotiations," Land Use Policy, Elsevier, vol. 99(C).
    20. Adewale Henry Adenuga & Claire Jack & Ronan McCarry, 2021. "The Case for Long-Term Land Leasing: A Review of the Empirical Literature," Land, MDPI, vol. 10(3), pages 1-21, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlands:v:8:y:2019:i:4:p:56-:d:218362. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.