Striking a Balance: Navigating Economic Growth and Sustainability in Indonesia’s Palm Oil Sector

Authors

  • Imelda Jo Anastasya Faculty of Law Universitas Pelita Harapan
  • Tiffany Angelica Faculty of Law Universitas Pelita Harapan

DOI:

https://doi.org/10.19166/lr.v24i1.9673

Keywords:

Palm Oil, Economic Growth, Sustainability

Abstract

Indonesia’s palm oil plantations have an irreplaceable role in Indonesia’s economy, contributing to job creation, rural poverty reduction, export revenue, and gross domestic product. Although such exploitation of its natural resources is within Indonesia’s permanent sovereignty, developed countries have expressed environmental concerns over Indonesia’s surge in palm oil expansion, which has brought about deforestation, biodiversity loss, and greenhouse gas emissions. This research will analyze whether Indonesia can navigate economic growth and sustainability in its palm oil sector, amidst such conflicting interests. Utilizing a normative legal research methodology with a statute approach, relevant laws, regulations, and practices will be used to identify whether Indonesia can achieve a sustainable palm oil industry that aligns with national development goals while also adhering to global environmental standards, ensuring both economic growth and sustainability.

References

Laws and Regulations

The 1945 Constitution of the Republic of Indonesia.

Republic of Indonesia Law Number 41 of 1999 on Forestry.

Republic of Indonesia Law Number 19 Year 2004 on Amendment to Law Number 41 of 1999 on Forestry.

Republic of Indonesia Law Number 32 of 2009 on Environmental Protection and Management.

Republic of Indonesia Law Number 18 of 2013 on the Prevention and Eradication of Forest Destruction.

Books

Soekanto, Soerjono, and Sri Mamudji. Penelitian Hukum Normatif: Suatu Tinjauan Singkat. Jakarta: Rajawali Pers, 2003.

Journal Articles

Januari, A.D., and H. Agustina. “Palm Oil Empty Fruit Bunches and the Implementation of Zero Waste and Renewable Energy Technologies.” IOP Conference Series: Earth and Environmental Science 1034 (2022): 012004, 4–6. https://doi.org/10.1088/1755-1315/1034/1/012004.

Mulyono, Andreas Tedy, and Rizky Karo Karo, “Questioning a Fair Settlement as the Legal Resolution of Global Interests.” IOP Conference Series: Earth and Environmental Science 1270 (2023): 012025. https://doi.org/10.1088/1755-1315/1270/1/012025

Nabila, Rakhmawati, Wahyu Hidayat, Agus Haryanto, Udin Hasanudin, Dewi Agustina Iryani, Sihyun Lee, Sangdo Kim, et al. “Oil Palm Biomass in Indonesia: Thermochemical Upgrading and Its Utilization.” Renewable and Sustainable Energy Reviews 176 (January 2023): 113193. https://doi.org/10.1016/j.rser.2023.113193.

Sudrajat, Dadang. “Problems of Illegal Logging Cases in Indonesia from the View of Criminal Law.” Legal Brief 11, no. 1 (November 2021): 85–89. https://www.legal.isha.or.id/index.php/legal/article/view/80.

Supriatna, Jajang, Mieke Rochimi Setiawati, Rija Sudirja, Cucu Suherman, and Xavier Bonneau. “Composting for a More Sustainable Palm Oil Waste Management: A Systematic Literature Review.” The Scientific World Journal (November 2022): 5073059. https://doi.org/10.1155/2022/5073059.

Syifa, Gheana. “Pertanggungjawaban Indonesia Dalam Menangani Pencemaran Asap Lintas Batas Ditinjau Dari ASEAN Agreement on Transboundary Haze Pollution (AATHP).” Litra 2, no. 2 (April 2023): 170–88. https://doi.org/10.23920/litra.v2i2.1186.

Scientific Papers

Abdel-Sabour, Mamdouh F. “Oil & Gas Industry Waste Management.” Paper presented at the Middle East Waste Management Summit, December 2015. https://www.researchgate.net/publication/286620089_Oil_Gas_industry_Waste_Management.

Sawit Watch, Madani, Indonesian Centre for Environmental Law, Lembaga Studi & Advokasi Masyarakat, Kaoem Telapak, Jaringan Pemantau Independen Kehutanan, Greenpeace Indonesia, et al. “Shadow Report: Where Is the Implementation of Presidential Instruction No. 8 of 2018, Going?” Kaoem Telapak, September 2019 https://kaoemtelapak.org/where-is-the-implementation-of-presidential-instruction-no-8-of-2018-going-2/.

News Articles

Argawati, Utami. “LSM Lingkungan Hidup Uji Ketentuan Proses Amdal dalam UU Cipta Kerja.” Mahkamah Konstitusi Republik Indonesia, October 26, 2021. https://www.mkri.id/index.php?page=web.Berita&id=17710&menu=2.

Arumingtyas, Lusia. “Eksekusi Lahan Sawit DL Sitorus, Kementerian Lingkungan Minta Bantuan KPK.” MONGABAY, February 22, 2018. https://www.mongabay.co.id/2018/02/22/eksekusi-lahan-sawit-dl-sitorus-kementerian-lingkungan-minta-bantuan-kpk/.

BBC. “Kebakaran Hutan: Dari Denda Belasan Triliun Rupiah, Pemerintah Klaim Baru Terima Rp400 Miliar dari Perusahaan Pembakar Lahan.” BBC News Indonesia, September 16, 2019. https://www.bbc.com/indonesia/indonesia-49716140.

GAPKI. “Palm Oil Has Irreplaceable Role in Indonesian Economy.” GAPKI News, September 22, 2021. https://gapki.id/en/news/2021/09/22/palm-oil-has-irreplaceable-role-in-indonesian-economy/.

Karokaro, Ayat Suheri. “Hutan Register 40 Masih Dikuasai Torganda, Kejati Sumut Belagak Bingung.” MONGABAY, April 21, 2014. https://www.mongabay.co.id/2014/04/21/hutan-register-40-masih-dikuasai-torganda-kejati-sumut-belagak-bingung/.

Kurmala, Azis. “Indonesia Accounts for 54% of Global Palm Oil Exports: Minister.” Antara News, March 28, 2024. https://en.antaranews.com/news/309540/indonesia-accounts-for-54-of-global-palm-oil-exports-minister.

Peranginangin, Firdaus. “DPRD SU ‘Bongkar’ Kembali Kasus Register 40 Padanglawas 19 Tahun Gagal Dieksekusi.” Harian SIB, January 7, 2025. https://www.hariansib.com/v1/Medan-Sekitarnya/418129/dprd-su-quotbongkarquot-kembali-kasus-register-40-padanglawas-19-tahun-gagal-dieksekusi/.

Revanda, Han. “Greenpeace Nilai Penegakan Hukum Karhutla Lemah: Sudah Divonis, Belum Bayar Denda.” Tempo, October 7, 2023. https://www.tempo.co/hukum/greenpeace-nilai-penegakan-hukum-karhutla-lemah-sudah-divonis-belum-bayar-denda-135394.

Saputra, Andi. “Perppu Cipta Kerja Pertahankan ‘Syarat Amdal’ yang Sempat Digugat ke MK.” Detiknews, January 1, 2023. https://news.detik.com/berita/d-6493143/perppu-cipta-kerja-pertahankan-syarat-amdal-yang-sempat-digugat-ke-mk.

Website Contents

European Union. “Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023 on the Making Available on the Union Market and the Export from the Union of Certain Commodities and Products Associated with Deforestation and Forest Degradation and Repealing Regulation (EU) No. 995/2010 (Text with EEA Relevance).” Last modified December 26, 2024. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1115&qid=1687867231461.

Kementerian Koordinator Bidang Perekonomian Republik Indonesia. “Izin AMDAL Dalam UU Cipta Kerja Tidak Dihapus, Hanya Disederhanakan.” Last modified October 9, 2020. https://www.ekon.go.id/publikasi/detail/558/izin-amdal-dalam-uu-cipta-kerja-tidak-dihapus-hanya-disederhanakan.

Indonesia Palm Oil Facts. “Palm and the SDGs in Indonesia.” Last modified January 23, 2024. https://www.indonesiapalmoilfacts.com/fact-sheet-palm-and-the-sdgs-in-indonesia/.

Office of the United Nations High Commisioner for Human Rights. “General Assembly Resolution 1803 (XVII): Permanent Sovereignty Over Natural Resources.” Accessed March 21, 2025. https://www.ohchr.org/en/instruments-mechanisms/instruments/general-assembly-resolution-1803-xvii-14-december-1962-permanent.

Palm Oil Analytics. “Exploring Palm Oil: Economic and Environmental Concerns in Indonesia.” Accessed March 21, 2025. https://www.palmoilanalytics.com/palm-oil-economic-and-environmental-concerns-in-indonesia/.

Rainforest Foundation Norway. “Norway Bans Palm Oil-Based Biofuel in Its Public Procurement.” Accessed March 21, 2025. https://www.regnskog.no/en/news/norway-bans-palm-oil-based-biofuel-in-its-public-procurement.

SMART. “How It Works: Zero Waste in Palm Oil Production.” Last modified November 12, 2018. https://www.smart-tbk.com/en/cara-kerja-nihil-limbah-dalam-produksi-minyak-kelapa-sawit/.

Statista. “Total area of oil palm plantations in Indonesia 2010-2022.” Accessed March 21, 2025. https://www.statista.com/statistics/971424/total-area-of-oil-palm-plantations-indonesia/.

WRI Indonesia. “Indonesia Has a Carrot to End Illegal Logging; Now It Needs a Stick.” Last modified January 4, 2018. https://wri-indonesia.org/en/insights/indonesia-has-carrot-end-illegal-logging-now-it-needs-stick.

Downloads

Published

2025-10-07

How to Cite

Jo Anastasya, I., & Angelica, T. (2025). Striking a Balance: Navigating Economic Growth and Sustainability in Indonesia’s Palm Oil Sector. Law Review, 24(1), 16–30. https://doi.org/10.19166/lr.v24i1.9673

Issue

Section

Articles

Similar Articles

1 2 > >> 

You may also start an advanced similarity search for this article.