Deforestation and Social Impact: Palm Oil Expansion in Kalimantan, Indonesia

1. Introduction

Large-scale land conversion for oil palm plantations has led to tremendous environmental degradation within this province of Indonesia: Kalimantan Province has been one of the most important drivers of deforestation worldwide, in one of the globe's most biodiverse areas, with very unique ecosystems under tremendous pressure. Between 2015 and 2022, approximately 1.5 million hectares were being cleared for palm oil, amounting to the clear-cutting of important habitats for many endangered species, including the Bornean orangutan and the Sumatran tiger. The ecological effects of removing the forests in Kalimantan, include habitat loss, soil erosion, and loss of biodiversity. A study by the World Wildlife Fund for the year 2023 indicates that increased planting of palm oil has killed more than half of the available space to host the orangutans while, at times, their populations plummet to a rate of 75%. The loss of biodiversity disturbs ecological balance and also affects the services of an ecosystem such as carbon sequestration and the regulation of water.

Social impact is just as disturbing. Expansion of palm oil contributes to land displacement and loss of cultural identity to indigenous communities, especially the Dayak people. Encroachment by plantations into their ancestral lands threatens their traditional ways of livelihood, causing socioeconomic instability. This problem can be analyzed by the Tragedy of the Commons theory, representing how shared resources are overexploited in favor of selfish gain and have a socially detrimental effect.

2. Social-Ecological Issue: Palm Oil and Deforestation in Kalimantan

Kalimantan Context

Kalimantan is, of course, a very crucial region in Indonesia and is considered one of the most degraded areas in the country. Again, this is contributed by its role as the largest producer of palm oil; the deforestation has continued relentlessly over the years, accelerated from the turn of the 2000s when the conversion of forest land into oil palm plantations began, threatening the ecosystems in the region with its disastrous effects (Widiono, 2024). Kalimantan is characterized by wide areas of lowland tropical rainforests, but the extremely critical habitats have experienced extreme loss due to widespread deforestation, particularly in West and Central Kalimantan.

Deforestation Data

The latest analyses indicate that expansion of palm oil plantations has led to the loss of more than 1 million hectares of forest in Kalimantan. As much as over 50% of the original forest cover in Central Kalimantan has disappeared, Sintang Regency remains most exposed and considered one of the most endangered (Okardaet al. 2024). In the last ten years, for instance, encroachment from planting and illegal logging has led to the loss of up to 20% of the area in East Kalimantan's Kutai National Park. The alarming rate demands actual steps to conserve against land conversion, which is quite rampant.

Palm oil production

Figure 1: DPSIR Framework

(Source: Okardaet al. 2024)

Environmental and Social Impact

The environmental effects of deforestation in Kalimantan are major. The world's biggest carbon sinks-most of which are found in tropical peatlands-are especially vulnerable. The conversion of peatlands to palm oil plantations has made these areas particularly prone to fires, which have, in turn created a number of serious episodes of air pollution-including those encountered during the 2015 El Niño event, when some of the worst recent recordings of particulate matter occurred in Central Kalimantan (Hellmundtet al. 2024). These fires not only increase carbon emissions but also degrade air quality, becoming hazardous threats to local health.

3. Components and Interactions

Drivers of Deforestation

Expansion of Palm Oil

The rapid expansion of palm oil plantations has been one of the leading causes of forest loss in Kalimantan. PT MayawanaPersada alone cleared more than 16,000 hectares in 2023 alone, and up to 45% of the natural forest cover in concessions owned by such companies have been converted, leading to fundamental changes in ecosystems at local levels," says Greenpeace (Safitriet al. 2024). Such plantations often become monoculture crops that are less biodiverse and disrupt complex relationships between various plant and animal species.

Corporate and Smallholder Influence

Two major factors at play in influencing the expansion of palm oil in Kalimantan are large corporations and smallholder farmers. Corporate entities usually use hard hitting strategies on land acquisition, pushing small holder farmers and indigenous communities off the land (Eggen et al. 2024). An example is that it strikes an insecurity of the land tenure, hence threatening these local farmers even for more intensified struggles resulting from land conflicts as these farmers struggle with deep-pocketed corporations.

Palm oil production

Figure 2: Deforestation and palm oil in Indonesia

(Source: Eggen et al. 2024)

Gaps in Legislative Framework and Enforcement

Kalimantan is also marked by ineffective governance due to weak enforcement of environmental laws and rampant corruption. Most companies continue to get away with their doings; in fact, illegal forest clearing has especially been rife in West Kalimantan (Putra and Elida, 2024). The very lax controls and the lack of mechanisms that make possible responsible, accountable, and transparent governance have ushered in the rapacious unfolding of environmental destruction.

Environmental Impacts

Loss of Biodiversity

Habitat loss due to palm oil production threatens much of the biodiversity in Kalimantan. Some species whose populations are being reduced by habitat loss are the orangutan (Pongo pygmaeus) and the sun bear (Helarctosmalayanus). Among key findings, area protected and its associated buffer zone shows increasing erosion from palm oil plantations, endangering the very survival of core species (Juliasticaet al. 2024). In addition, as biodiversity declines, the ecosystems' ecological integrity would also degrade, thus leading to a negative impact on the services that the ecosystems yield.

Soil Degradation and Carbon Emissions

Among the key carbon emitters in Kalimantan is the conversion of peatlands into oil palm plantations. Studies indicate that losing carbon-rich sites results in higher CO2 and methane in the atmosphere, worsening climate conditions. Conversion of peatland not only emits stored carbon into the atmosphere but also decreases the capability of the area as a future carbon store.

Palm oil production

Figure 3: Adaptive Cycle: Palm Oil and Deforestation in Indonesia

(Source: Self-Created in Draw.io)

Water Systems and Pollution

Palm oil production further renders the water systems dirty. All rivers and streams, including the Kapuas River, undergo much sedimentation and pesticide washing from the plantations, thereby causing a pollution within it as well as impacting the fisheries as well as other sources of drinking waters (Hasudunganet al. 2024). This degradation in terms of quality thereby puts at risk health of these ecosystems and communities reliant on those source waters for sustenance.

Social Impacts

Land Conflict and Indigenous Communities

Over the years, there is an increasingly outstanding struggle pitting the palm oil firms against the local communities of Kalimantan. Greatly affected is the Dayak population. The case studies in the regions of Kapuas Hulu about corporate land appropriation eventually trigger socio-economic instability and cultural decimation (Mahendra et al. 2024). The inability of the indigenous people to acquire land rights has a negative impact, not only on their livelihood but also deprives them of acquiring culture inheritance.

Economic Dependence

Of course, the economic benefits generated by the palm oil industry usually must overcome the ways of traditional livelihood in subsistence farming. Now, shifting diverse agricultural practices into monoculture plantations for palm oil may create socio-economic issues for the long term because communities depend on the benefits from an industry that would not guarantee sustainable benefits over the long run (Kusumadewiet al. 2024). This transition dislodges communities from their economic independence and cultural practices, causing a threat against their survival.

4. Theories Related to Palm Oil Plantations and Deforestation

Land Use Change Theory

Land Use Change Theory expounds on land transition, primarily focusing on the extensive transformation of forests to agricultural land. Between year 2000 and now, in Kalimantan Province, around 55% of the agricultural land transformed had earlier been forested (Irawan et al. 2024). This direct transformation shows that demand for agricultural land is forcing decisions on land use directly. Immediate economic gains are then used to transform forests into agricultural land.

The global surge in demand for palm oil naturally encourages land owners and farmers to look at short-term benefits of agricultural production; often, these have to be measured against long-term ecological health (Susanto, 2024). The rush to supply palm oil on an increasingly large scale resulted in the speeding up of the rate of deforestation. Land conversion practices by the palm oil industry, backed by government policy and international market forces, therefore do not balance out the ecological costs. This model of land use negates the practice of sustainability, leading to habitat degradation and soil pollution and the emission of greenhouse gases.

Environmental impact of palm oil

Figure 4: Conceptual Framework of Land-Use Change

(Source: Susanto, 2024)

The Environmental Kuznets Curve (EKC)

The EKC theory suggests an inverted U-shaped hypothesis: environmental degradation typically follows the trajectory of economic growth but worsens before it is improved by more sustainable choices made by societies. In the case of Kalimantan, earlier investments in palm oil production have greatly contributed to loss of forest cover, initially consistent with the EKC theory. However, recent investments in sustainable agricultural practices might begin to mark that important turning point (Kraus et al. 2024).

The reforestation evidence in Kalimantan shows increased awareness by stakeholders ranging from the local community up to various government institutions and international organizations. They are attempting to mitigate damage caused by unsustainable palm oil production in the past. When public awareness about environmental issues increases, there is a potential for incremental revival of forest ecosystems (Evalia et al. 2024). This recovery may suggest Kalimantan is shifting towards sustainable practices, presenting the latter stage of the EKC. Changes of this nature may spur long-term environmental benefits and help realize an economy-neutral environmental agenda.

Environmental impact of palm oil

Figure 5: Environmental Kuznets Curve

(Source: Evalia et al. 2024)

Tragedy of the Commons

The Tragedy of the Commons theory explains how overexploitation of common-pool resources, such as land in Kalimantan, often results from unclear property rights and inadequate governance. Thus, the palm oil industry comes within the scope of where maximization of short-term profits leads to unsustainable use of common-pool resources. The foresters as well as large corporations are encouraged to clear forests without worrying about long-run consequences, mainly because the short-run economic gains may be sufficiently attractive from producing palm oil (Rauf et al. 2024).

This exploitation calls for improvement in governance and development in effective land-use policies that advocate for sustainability. The governance frameworks, therefore, have to represent transparency and community engagement at the same time as bringing on board the rights of the people. Sustainability in land use provides a possibility to bring together economic growth with the protection of the environment and social equity (Chandra et al. 2024). This interplay of theories underscores the complexity of land use and environmental sustainability in Kalimantan. Continued demand for palm oil propels deforestation, while new trends are emerging that aim for more sustainable agriculture forms in combination with changes in governance offering potential for improvement.

Deforestation in Indonesia

Figure 6: The Tragedy Of The Commons

(Source: Chandra et al. 2024)

5. Data and Evidence from Kalimantan

Deforestation Rates

Its impact on deforestation in Kalimantan Province, Indonesia, forms a significant social-ecological challenge. The region of Kalimantan is richly endowed with biodiversity, and big and widespread forest clearing has taken place because of the conversion of land into palm oil plantations, significant impacts for local ecosystems and communities (Susilowatiet al. 2024). The Loss Rates Deforestation in Kalimantan between the years 2020 and 2023 is recorded to be about 305,000 hectares, with many of these hectares being devoted to palm oil cultivation. Palm oil accounts for more than 70% of deforestation in the region in 2023. This has great consequences in regards to biodiversity and is carbon-emitting, thereby making climate change worse.

Economic Contributions vs. Environmental Costs

It has been among the biggest economic activities in Kalimantan, accounting for about $24 billion worth of added value into the Indonesian economy by 2022. It brings significant revenue in terms of jobs as it supports local economies and exporting of products, making palm oil an important commodity for the region. The expansion of the industry has led to the development of infrastructure in terms of roads, increased investment opportunities, and upliftment of livelihoods in many poor farmers who use palm oil to earn a living (Rosyidy and Frimawaty, 2024).

However, palm oil production has been found to have a very massive environmental cost. Kalimantan's ecosystems are affected severely due to oil palm plantations through habitat loss and massive losses in biodiversity. One study has estimated the carbon emissions from Kalimantan's palm oil plantations at over 100 million tons yearly, thus fueling climate change and working against the global efforts aimed at lessening emissions of greenhouse gases (Noerdin and Mar’iyah, 2024). While forest cover loss affects the wildlife habitats, it also usually renders much-needed ecosystem services, such as carbon storage, purification of water, and soil stabilization, unusable.

Social impact of palm oil

Figure 7: The costs and benefits of environmental costs

(Source: Noerdin and Mar’iyah, 2024)

Local Initiatives

To address these environmental issues caused by palm oil production, there have been several local initiatives advocating sustainability. The Roundtable on Sustainable Palm Oil (RSPO) certified some of the Kalimantan plantations as environmentally friendly, with this insisting that these cultivation methods have to be sustainable. Thus, giving relatively diminished negative impacts compared to conventionally farmed palm oil and would encourage land management and carbon footprints (Juniyantiet al. 2024).

Community-managed reforestation activities are implemented on the degraded areas, where local organizations and residents collaborate on rejuvenating lost habitats. The programs focus not only on biodiversity improvement but also on ecosystem health, which are necessary in maintaining both local communities and wildlife in Kalimantan. All of this combined forms the greater awareness that there is a need for better balancing of economic expansion in the palm oil sector with environmental responsibilities.

6. Impact on Kalimantan’s Ecosystems and Communities

Flora and Fauna

Deforestation has led to the destruction of habitats that are crucial for many species in Kalimantan. For instance, Bornean orangutan (Pongo pygmaeus) populations have dropped by nearly 50% over the last two decades. The primary cause of the decrease in this decline is habitat loss from the introduction of palm oil plantations (Lim et al. 2024). According to World Wildlife Fund, over 400 species are put into jeopardy in Kalimantan; these include pygmy elephants and Sumatran tigers. This hotspot also requires greater engagement. The Indonesian Ministry of Environment and Forestry reported that, from 2020 to 2023, the region of Kalimantan lost 1.2 million hectares of forestland to palm oil production.

Indigenous Communities

In socio-cultural life, deforestation associated with Kalimantan deforestation has been felt among the Dayak communities, who have stayed in the area for centuries. The most affected family members are those seen being displaced due to the intense expansion of palm oil plantations; thus, most families have left behind their ancestral lands and are forced to seek new habitats-this loss causes them to lose parts of their customary ways of life and represents a dire threat to their identity. According to Ramdhani et al. (2024), this has resulted in approximately 200,000 Dayak people being affected and hence unable to sustain cultural activities and solidarity as a tribe because the palm oil companies have continually occupied land over time. Most of the Dayak families have been marginalized because of loss of their livelihood in agriculture and socio-economic problems resulting from their displacement (Berenschot et al. 2024). The most threatening impact of erosion in terms of cultural ties and community coherence is the challenge to the ways of life among the Dayaks, proving the emergency intervention where rights are respected and strengthened through sustainable land management practice.

Climate Impact

Destruction in Kalimantan has a climatic impact as huge as it sends into the atmosphere a tremendous amount of greenhouse gases. According to Novarina et al. (2024), it has been disclosed that land use changes due to palm oil production accounted for about 30 percent of Indonesia's total emissions. According to a report by Global Forest Watch (2024), Kalimantan alone had been emitting annually about 122 million tons of CO2 that sustain global climate change. This is a disturbingly high figure and calls for reflection on the role of palm oil plantations in fueling climate change, whose impacts range from displacing critical carbon sinks to altering local climates and all sorts of biodiversity (Woittiez et al. 2024). Their effects surely extend beyond the eastern islands, creating global warming and its related effects such as extreme meteorological events and degradation of habitats all over the world. This paper focuses on the pressing need of challenges that shall be demanded by this sustainable practice of palm oil for the protection of Kalimantan forests to protect it with respect to the needs of future people.

Sustainable palm oil

Figure 8: Environmental Impacts of Palm Oil Production

(Source: Woittiezet al. 2024)

7. Conclusion and Recommendations

Conclusion

The impact of producing palm oil causes severe deforestation in Kalimantan Province, posing great challenges on the environment and society. The rapid conversion of forests into oil palm plantations over the five-year period 2015 to 2022 has resulted in the loss of more than 1.5 million hectares of forest, thus critically endangering Kalimantan's biodiversity. The loss of habitats has significantly eliminated important habitats for key species such as Bornean orangutan (Pongo pygmaeus) and Sumatran tiger (Panthera tigrissumatrae). According to some evaluations, population declines of up to 75% occur among these species due to habitat destruction. It not only endangers the survival of these species but also disrupts an entire ecosystem and affects its resilience and functionality.

Reported to be occurring on the population of Dayak natives, major displacement and cultural erosion with palm oil expansion that has taken over their ancestral land. Socio-economic instability among communities is noticed where such communities lack the ability to sustain their manner of life or their cultural identity in the face of industrial development encroachment.

The production of palm oil also plays a significant role in causing global climate change, and Kalimantan emits more greenhouse gases than Indonesia would aspire to. The degradation of the forests kills the carbon sinks hence feeding into the climate crisis. This becomes a complex issue that confronts interconnection within palm oil production and deforestation; it, therefore, calls for urgent action from local governments, business operators, and civil society in ensuring that the state's unique ecosystems are preserved and the rights of its indigenous people. Such issues are pertinent in encouraging and building a sustainable future that balances economic development with environmental protection.

Recommendations

To effectively undertake the mitigation of deforestation in Kalimantan, a multi-pronged approach needs to be undertaken:

Support Sustainable Palm Oil Practices: Encourage RSPO and other sustainable palm oil certifications. The stipulations of such certification ensure palm oil production remains environmentally friendly, undertaking agroforestry practices that promote biodiversity and protect the local ecosystems (Nasution et al. 2024).

Strengthen Environmental Law Implementation: Improve the enforcement of existing environmental laws on the prevention of illegal forest clearing and land conversion. More monitoring and penalties attached to violations will ensure compliance from palm oil producers.

Supporting Local Community Rights: The recognition and protection of land rights of local communities, in particular the Dayak, is also very important. Even more pressing would be the establishment of policies that include them in the process of decision-making on how their lands are to be used and, therefore, letting them benefit from the economic activities conducted in these ancestral domains.

Alternative Livelihood Programs: Alternative livelihood programs for communities dependent on palm oil will undoubtedly alleviate pressure on the forests (Supriatnaet al. 2024). This could include ecotourism, ecological agriculture, among other environmental-friendly economic activities.

Support Reforestation/ Afforestation Activities: Reforestation and afforestation activities will help to recover the land that has suffered degradation and loss of biodiversity. In order to really recover ecologically in the long term, this will necessarily require collaboration with local and international NGOs to develop such activities.

Raise awareness and education: An educative campaign for consumers to inform them of the impacts of producing palm oil and the importance of sustainable practices raise market demand to supportive options.

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