Ara Simanjuntak : Betting the Farm
Palm oil contributes to up 4.5% to Indonesia’s GDP and unlike other commodities, the Indonesian government promotes palm oil as motor of rural development. This is because up to half of Indonesia’s palm oil production is generated by smallholders, farmers with 2-3 hectares of land, cultivating oil palm crops and selling the product for reliable market prices to corporate and state refineries. But this model of national development is in crisis. Small holder palm oil plants are aging, yields are decreasing and company profits are becoming leaner. At the same time, major markets are putting…
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