How has the Riau province in Indonesia been affected by palm oil production ?

Adwait Shikhar
SN Mentoring
Published in
3 min readMay 10, 2024

Indonesia is the world’s top producer of crude palm oil, and this strategiccommodities have boosted the nation’s economic growth. Riau is an Indonesian province on the central eastern coast of Sumatra, facing the Strait of Malacca.

According to the 2020 census,

Riau had a population of 6,394,087 across a land area of 89,935.90 km²

In the 1980s the PIR (Perkebunan Inti Rakyat) The program brought many Javanese transmigrants to Riau to cultivate palm oil, helping Riau Province become Indonesia’s largest producer of palm oil, accounting for almost one fifth of national production in 2018. The growth of the palm oil industry has spurred economic growth in Riau while also contributing to an increase in environmental degradation.

Most of the Riau province is under environmental exploitation. Whether it be timber exploitation, the development of the pulp and paper industry or palm oil production. The development of the palm oil sector began in Riau province in the 1920s. Favorable soils and climatic conditions combined with the availability of the required labor force, saw oil palm plantation areas skyrocket within a few years.

The extraction of oil has also helped in reshaping land use through large concessions granted to oil companies and the construction of roads and industrial plants. Malaysian and other international palm oil corporations have made significant investments in Riau. As a result, Malaysians controlled 25% of the palm oil farms and nearly 20% of the businesses in Riau in 2011. Due to this tendency, local authorities have decided to limit foreign investors’ access to land ownership, including the Riau Plantation Office.

The conversion of wood dwellings into brick homes and the rise in the number of children attending school and even university are only two tangible examples of the advantages the palm oil industry has given to the province of Riau. The province appears to have had a swift modernization process characterized by the expansion of its road network and infrastructure, along with a rise in income levels. However, a large portion of this success story is challenged by the large number of landless people, who are mostly natives but also migrants who were unable to save their investment.

Fire is used widely in clearing forest areas and preparing land for palm oil plantations. “Since the 1900s, most of the haze pollution in the region has come from burning forest lands, especially peatlands. Land-use change for oil palm cultivation in Riau accounts for 22% of the emission of carbon from deforestation, fire and degradation of peatland, which reached an estimated total 220 Mt of CO2/year between 1990 and 2007” Additionally, palm oil plantations have also been built upon logged-over areas. These are some of the negative environmental effects of palm oil production in the Riau Province of Indonesia.

In conclusion, the palm oil industry has brought both prosperity and adversity to Riau Province in Indonesia. While it has driven economic growth, leading to modernization, improved infrastructure, and increased access to education, it has also led to significant environmental degradation and social challenges. The rapid expansion of palm oil plantations has resulted in the exploitation of natural resources, deforestation, and the loss of biodiversity. Furthermore, the use of fire for land clearing has contributed to haze pollution and carbon emissions, exacerbating climate change concerns. Despite the economic benefits, many locals, particularly indigenous and landless people, have been marginalized or displaced, highlighting the complex social impacts of palm oil production. Moving forward, sustainable practices and balanced policies that prioritize environmental conservation, social equity, and economic development are crucial to mitigate the negative effects of palm oil production in Riau Province and ensure a more sustainable future for its inhabitants and ecosystems.

References-

Riau. (n.d.). Citypopulation.de. Retrieved May 9, 2024, from https://www.citypopulation.de/en/indonesia/admin/14__riau/

Baudoin, A., Bosc, P.-M., Bessou, C., & Levang, P. (2017). Case studies in Riau and Jambi.

Jakarta Post 2011

Potter and Badcock 2004; Levang, pers. comm. 2012)

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