Trends in global dependency on the Indonesian palm oil and resultant environmental impacts

Abstract

AbstractRapid growth in the international demand for palm oil has triggered considerable global concern because oil palm plantations deteriorate the environment where they are developed, resulting in complex environmental impacts in the producer nations. Here, we illustrate the historical trends in the structure of Indonesian palm oil supply chains and how these have been affected by the final demand of other nations since 2000 by using the most recent dataset of global material flows of palm oil and a global input–output database. In addition, the combination of spatial land-use change with palm oil consumption along the supply chains illustrates the linkages between ultimate consumption and land-use changes due to the palm oil plantations. As a result, the major contributors to palm oil production in Indonesia were mostly stable, being India, China, Western Europe, the United States, and Japan. However, the contribution of Indonesia declined by 6% during 2000–2013, illustrating a possible shift towards palm oil being used for non-food demands, such as apparel and medicines. Building on consumption-based accounting schemes as demonstrated by this study are considered necessary to protect local ecosystems and society.