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  • How has palm oil benefited Indonesia?
  • As the largest producer of palm oil, its production has benefited more than 4 million smallholder households and lifted around 2.6 million rural Indonesians out of poverty. The production and expansion of palm plantation areas have led to a 2.7% faster poverty reduction and a 4% faster consumption growth (Palm Oil Monitor: 2020).
  • Is palm oil causing deforestation in Indonesia?
  • Deforestation associated with the palm oil sector in Indonesia increased slightly in 2022 after falling for nearly a decade, according to the latest Trase data. Greenhouse gas emissions linked to palm oil production on carbon-rich peatland account for a substantial portion of the country's total climate impact.
  • Does Indonesia have a sustainable palm oil supply chain?
  • Indonesia's total emissions for 2022, excluding the land-use sector, were 1,240 million metric tons, the highest on record. Therefore, palm oil supply chain emissions account for about a fifth of Indonesia's total emissions (Mongabay: 2024). This underscores the urgent need for sustainable practices in the palm oil supply chain.
  • What are the business models for palm oil production in Indonesia?
  • The three main business models for palm oil production in Indonesia are private large scale plantations, nucleus estate smallholders, and independent smallholders. The breakdown of palm oil area and production by type of palm oil plantation is shown in Table 1. [ 12 ]
  • Where does Indonesian palm oil come from?
  • In addition to being the largest markets for Indonesian palm oil, Indonesia, China and india all tend to source from supply chains with comparatively higher rates of deforestation exposure. We estimate that these markets tend to rely on palm oil with twice the per-tonne deforestation exposure of exports destined for export to the EU.
  • How much carbon dioxide does palm oil produce in Indonesia?
  • We found that industrial palm oil production in Indonesia emitted an annual average of 220 million tonnes of carbon dioxide equivalent between 2015 and 2022. This amounts to almost a fifth of Indonesia’s total annual emissions of 1.23 gigatonnes in 2022.