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Governing the Palm-Oil Sector through Finance: The Changing Roles of the Indonesian State

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  • Eusebius Pantja Pramudya
  • Otto Hospes
  • C. J. A. M. Termeer

Abstract

By analysing the different roles of the Indonesian state in arranging finance schemes for palm-oil development since 1945, this article aims to answer two questions: What are these roles? And to what extent have they prioritised or balanced economic growth, social equity, and environmental protection? We conclude that the state has never been absent from the palm-oil industry but has had different and changing financing roles that are historically contingent and shaped by the evolving economic and political landscape. Furthermore, these roles reflect Indonesia’s priorities of achieving economic growth through palm-oil development, furthering social equity, and, recently, promoting environmental sustainability.

Suggested Citation

  • Eusebius Pantja Pramudya & Otto Hospes & C. J. A. M. Termeer, 2017. "Governing the Palm-Oil Sector through Finance: The Changing Roles of the Indonesian State," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 53(1), pages 57-82, January.
    • Handle: RePEc:taf:bindes:v:53:y:2017:i:1:p:57-82
    DOI: 10.1080/00074918.2016.1228829
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    Cited by:

    1. Apriani, Ernawati & Kim, Yeon-Su & Fisher, Larry A. & Baral, Himlal, 2020. "Non-state certification of smallholders for sustainable palm oil in Sumatra, Indonesia," Land Use Policy, Elsevier, vol. 99(C).
    2. Ketut Sukiyono & Muhammad Mustopa Romdhon & Gita Mulyasari & M. Zulkarnain Yuliarso & Musriyadi Nabiu & Agung Trisusilo & Reflis & Dompak M. T. Napitupulu & Yoga Nugroho & May Shiska Puspitasari & Sig, 2022. "The Contribution of Oil Palm Smallholders Farms to the Implementation of the Sustainable Development Goals-Measurement Attempt," Sustainability, MDPI, vol. 14(11), pages 1-16, June.
    3. Yeong Sheng Tey & Mark Brindal, 2021. "Sustainability stewardship: Does roundtable on sustainable palm oil certification create shareholder value?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 786-795, March.
    4. Pitalis Mawardi Baging & Mohd Khairul Amri Kamarudin & Reza Rachmadtullah, 2020. "Change of Mindset of Dayak Indigenous Peoples in West Borneo Towards Indigenous Forests as a Management of Oil Palm Plantations and Oil Palm Plantations Wastes," Journal of Wastes and Biomass Management (JWBM), Zibeline International Publishing, vol. 1(2), pages 18-22, January.
    5. Pablo Ciocchini & Joe Greener, 2023. "Regimes of Extreme Permission in Southeast Asia: Theorizing State-Corporate Crime in the Global South," The British Journal of Criminology, Centre for Crime and Justice Studies, vol. 63(5), pages 1309-1326.
    6. Pablo Pacheco & George Schoneveld & Ahmad Dermawan & Heru Komarudin & Marcel Djama, 2020. "Governing sustainable palm oil supply: Disconnects, complementarities, and antagonisms between state regulations and private standards," Regulation & Governance, John Wiley & Sons, vol. 14(3), pages 568-598, July.

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