How will Indonesia cope with slump in demand for palm oil?

With demand for the environmentally destructive crop falling, the future of Indonesia’s key commodity, palm oil, is under scrutiny. Another strain on the commodity’s place in the global market is said to stem from environmental concerns. “There is increasingly more pressure from environmental groups in sensitive markets [such as the US and Europe], which is pressuring companies,” explained Krystof Obidzinski, a palm oil expert with the Indonesia-based Center for International Forestry Research. “Some of these markets are becoming uncertain for crude palm oil.”