Efficiency of Land Use in Smallholder Palm Oil Plantations in Indonesia: A Stochastic Frontier Approach

Sari, Dyah Wulan; Hidayat, Faqih Nur; Abdul, Irawati

doi:10.24259/fs.v5i1.10912

Cited by 12 publications

(12 citation statements)

References 29 publications

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“…By considering how improving crop yields shift the supply relationship, our work challenges the notion that agricultural intensification leads to a reduced extent of cropland. With oil palm plantations across Indonesia exhibiting crop inefficiency (Sari et al., 2021), the land‐sparing framework (Green et al., 2005) has been repeatedly promoted as an effective means of increasing agricultural output on less land to meet these demands while protecting forests and biodiversity (Luskin et al., 2018). However, while agricultural intensification undoubtedly increases outputs within existing plantations and improves overall land‐use efficiency, it also raises profit margins, making crop expansion more attractive across a larger area and resulting in a notable shift in the supply curve, at least in the short term.…”

Section: Discussionmentioning

confidence: 99%

Land‐use change from market responses to oil palm intensification in Indonesia

Lim

Carrasco

Edwards

et al. 2023

Conservation Biology

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Oil palm is a major driver of tropical deforestation. A key intervention proposed to reduce the footprint of oil palm is intensifying production to free up spare land for nature, yet the indirect land‐use implications of intensification through market forces are poorly understood. We characterise supply and demand of oil palm in Indonesia using a spatially explicit land‐rent modelling framework under different crop yield improvement and demand elasticity scenarios, and explore how shifts in market equilibria alter projections of crop expansion. Oil palm supply was sensitive to both crop prices and yield improvements: intensification raises agricultural rents and lowers the effectiveness in reducing crop expansion. Increased yields are able to lower oil palm prices, but these price‐drops are not sufficient to prevent further cropland expansion from increased agricultural rents under a range of price elasticities of demand. Crucially, we show that agricultural intensification might only result in land being spared when the demand relationship is highly inelastic, and crop prices are severely reduced. Under these scenarios, the extent of land spared is countered by the continued expansion of new plantations. Oil palm intensification in Indonesia has potential to exacerbate current pressures on its imperiled biodiversity and should be deployed with stronger spatial planning and enforcement to prevent further cropland expansion.This article is protected by copyright. All rights reserved

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Section: Discussionmentioning

confidence: 99%

Land‐use change from market responses to oil palm intensification in Indonesia

Lim

Carrasco

Edwards

et al. 2023

Conservation Biology

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“…The Indonesian palm coconut industry can also be seen from documented data from the Food and Agriculture Organization (FAO), which provides information that by 2021, the most productive sector in Indonesia will be coca palm, with a total production of about 25.130.562 tons. This gure is much higher when compared to the production of rice products, the primary raw material in Indonesia, with an average production of 21.280.164 tons (Sari et al, 2021).…”

Section: Introductionmentioning

confidence: 93%

Optimizing Sustainability: A Deep Learning Approach on Data Augmentation of Indonesia Palm Oil Products Emission

Tahyudin,

Tikaningsih,

Suryana

et al. 2023

Preprint

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Life Cycle Assessment (LCA) is a widely used methodology for quantifying the environmental impacts of products, including the carbon footprint. However, conducting LCA studies for complex systems, such as the palm oil industry in Indonesia, can be challenging due to limited data availability. This study proposes a novel approach called the Anonymization Through Data Synthesis (ADS-GAN) based on a deep learning approach to augment carbon footprint data for LCA assessments of palm oil products in Indonesia. This approach addresses the data size limitation and enhances the comprehensiveness of carbon footprint assessments. An original dataset comprising information on various palm oil life cycle stages, including plantation operations, milling, refining, transportation, and waste management. The number of original data is 195 obtained from the Sustainable Production Systems and Life Assessment Research Centre of Indonesia's National Innovation Research Agency (BRIN). To measure the performance of prediction accuracy, this study used regression models: Random Forest Regressor (RFR), Gradient Boosting Regressor (GBR), and Adaptive Boosting Regressor (ABR). The best-augmented data size is 1000 data. In addition, the best algorithm is the Random Forest Regressor, resulting in the MAE, MSE, and MSLE values are 0.0031, 6.127072889081567e-05, and 5.838479552074619e-05 respectively. The proposed ADS-GAN offers a valuable tool for LCA practitioners and decision-makers in the palm oil industry to conduct more accurate and comprehensive carbon footprint assessments. By augmenting the dataset, this technique enables a better understanding of the environmental impacts of palm oil products, facilitating informed decision-making and the development of sustainable practices.

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“…Crop yields, especially those managed by smallholders, are lower than those owned by the company. Sari et al, 2021 [63] said that smallholders often use lands inefficiently. However, Grassini et al 2018 [64] have said that the climate and soils offer favorable conditions for oil palm growth.…”

Section: Threatmentioning

confidence: 99%

Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme

Nurfatriani

Ramawati²,

Sari³

et al. 2022

Land

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Palm oil is considered a key commodity in supporting the Indonesian economy, generating both domestic revenue and foreign exchange. Such revenue needs to be distributed equally for the benefit of the government and society. This paper discusses the opportunities and challenges of the proposed revenue-sharing scheme, DBH Sawit, sourcing from palm oil, particularly between central and local governments. It examines how the proposed scheme can be implemented and what strategies can reward regions for moving toward environmental sustainability practices. Research methods used in this paper include a literature study, stakeholder interviews, the SWOT method and analytical hierarchy processes. Results indicate that DBH Sawit is one of several fiscal instruments that could potentially incentivize sustainability. It has both strengths and anticipated opportunities, such as increased CPO production and global demand for palm oil. It faces, however, serious weaknesses, such as unauthorized oil palm plantations and the absence of traceability systems. It is also threatened by unfair market and global policies. This paper recommends diverse strategies to increase palm oil productivity, accelerate sustainability certification and develop a tracing system. To accelerate the adoption of environmental sustainability, the paper advocates an ecological-based fiscal transfer system.

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Efficiency of Land Use in Smallholder Palm Oil Plantations in Indonesia: A Stochastic Frontier Approach

Cited by 12 publications

References 29 publications

Land‐use change from market responses to oil palm intensification in Indonesia

Land‐use change from market responses to oil palm intensification in Indonesia

Optimizing Sustainability: A Deep Learning Approach on Data Augmentation of Indonesia Palm Oil Products Emission

Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme

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