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Evidence-Based Insights
for Climate Action.

Access research reports, policy briefs, and data-driven resources that support transparent, fair, and sustainable climate decision-making in Indonesia.

Access research reports, policy briefs, and data-driven resources that support transparent, fair, and sustainable climate decision-making in Indonesia.

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Overview of Indonesia’s Palm Oil Industry: Responding to Assumptions with Facts and Figures

The presence of oil palm plantation companies holding Land Use Rights (HGU) across five districts in West Kalimantan, Ketapang, Landak, Sekadau, Sintang, and Sanggau has not yet optimally supported the development of surrounding villages, despite the province having the third-largest planted oil palm area nationally. Case studies in Ketapang, Landak, and Sekadau reveal significant disparities in the Village Development Index (IDM), with many villages still receiving limited benefits from HGU operations. Low IDM scores are mainly driven by weak economic and environmental resilience, reflected in limited community access to economic opportunities, high disaster risks, and poor environmental quality in villages near HGU areas.

Meanwhile, IDM data from Sintang and Sanggau indicate strong potential for rural development, with many “developing” villages capable of advancing further. To reduce disparities and optimize the contribution of the palm oil industry, multi-stakeholder collaboration through public–private partnerships is needed, supported by more targeted Corporate Social and Environmental Responsibility (TJSL) programs. Local governments can direct company involvement toward developing and disadvantaged villages, implement reward and punishment mechanisms, and promote concrete initiatives such as improving village road access, establishing Entrepreneurship Training Centers (PPK), and initiating Community Fire Care Groups (MPA) to mitigate forest and land fire risks.