This paper examines the implications of oil palm estate development in Indonesia's frontier province of Papua. Government planners believe that oil palm investment will develop the local economy, create jobs and reduce poverty. Using the input-output approach, we find that, in aggregate terms, oil palm investments boost the economic output in the province, generate jobs and increase worker salaries. However, the oil palm subsector operates in isolation and has limited economic multipliers. The number of jobs is potentially large, but those best positioned to benefit from them are mostly skilled migrants, not local poor. The government should reduce the size of plantation investments and plan their implementation as part of a broader development package to allow greater economic integration and skill acquisition by local communities. The priority areas for plantation development should be degraded, non-forest land.
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DOI:
https://doi.org/10.1007/s10668-014-9519-8Altmetric score:
Dimensions Citation Count:
- Sustainable Development of Palm Oil Production: Designing strategies from Improved Knowledge on Oil Palm Cropping Systems
- PRO-FORMAL: Policy and regulatory options to recognise and better integrate the domestic timber sector in tropical countries
- Large scale land acquisition for plantation estates in Indonesia
- Corporate governance in the palm oil sector - Engaging with an increasingly diverse landscape of supply chain actors and policy makers
- French Agricultural Research Centre for International Development (CIRAD)
- European Commission (EC)
- Catholic Organisation for Relief and Development Aid (CORDAID)
- Foreign, Commonwealth & Development Office (FCDO)
Source
Environment, Development and Sustainability 16(6): 1177-1196
Publication year
2014
ISSN
1387-585X
Authors
Obidzinski, K.; Dermawan, A.; Hadianto, A.
Geographic
Indonesia
Topic
Research was conducted by project
Funded by
Geographic
Indonesia
Project Leader
Pablo Pacheco
CIFOR Senior Associate
D. Andrew Wardell
Principal Scientist
Kristen Evans
CIFOR Associate
Julia E. Fa
CIFOR Senior Associate
Willy Daeli
Consultant
Lauren Coad
Consultant
Rebecca McLain
CIFOR Senior Associate
David Fabre
Consultant
Rodd Myers
CIFOR Associate
Boen Purnama, MSc
CIFOR Senior Associate