Oil palm in Indonesia: governance, decision making, and implications for sustainable development

Authors: Paoli G.D., Gillespie, P., Wells, P.L., Hovani, L., Sileuw, A.E., Franklin N., and Schweithelm, J.

Publisher: The Nature Conservancy

May 2013

This research and analysis was conducted by Daemeter Consulting and The Nature Conservancy (TNC), with funding provided from the people of United Stated of America through the United States Agency for International Development (USAID) and Responsible Asia Forestry and Trade (RAFT).

The purpose of this analysis is to describe Indonesian oil palm decision-making processes in terms that are understandable to a range of audiences, including government officials, the private sector, civil society, international consumers, and donors. This report aims to (a) provide a balanced perspective to help bridge between proponents and critics of oil palm, and (b) highlight opportunities to align decision-making more closely with Indonesia’s Green Growth objectives.

This study organizes a selection of key decisions made by different actors involved in palm oil development, explains how decisions affect development outcomes, and recommends ways to support ongoing improvements in performance. This information provides a basis for a more informed policy dialogue, drawing attention to concrete means for improving decisions, and giving actors a better sense of their role and how they might collaborate more effectively to achieve particular outcomes.