The growth and prospects for the oil palm plantation industry in Indonesia

This article provides a historical political economy perspective of the Indonesian oil palm plantation sector. It aims to shed light on the process of how Indonesia took over from Malaysia in becoming the world’s current largest producer of palm oil. This article argues that the regional trend of st...

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Main Author: Varkkey, H.
Format: Article
Language:English
Published: Malaysian Palm Oil Board 2012
Subjects:
Online Access:http://eprints.um.edu.my/8380/1/opiejv12n2-helena.pdf
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author Varkkey, H.
author_facet Varkkey, H.
author_sort Varkkey, H.
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description This article provides a historical political economy perspective of the Indonesian oil palm plantation sector. It aims to shed light on the process of how Indonesia took over from Malaysia in becoming the world’s current largest producer of palm oil. This article argues that the regional trend of state-led development that relied on agribusiness as a major sector played a major role in the development of oil palm as an important crop in the region, especially in Malaysia and Indonesia. Indonesia specifically promoted and encouraged the expansion of oil palm as a way to fulfill state developmental aims; identifying it as a lucrative source of revenue, foreign exchange, and rural employment. With oil palm playing such an important role in the Indonesian economy, the state has outlined plans for rapid area expansion, to maintain its world dominance in the sector. Malaysian and Singaporean companies are currently major players in the Indonesian oil palm plantation sector, and continue to reap the benefits of this lucrative crop alongside local firms.
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spelling um.eprints-83802013-10-17T01:50:24Z http://eprints.um.edu.my/8380/ The growth and prospects for the oil palm plantation industry in Indonesia Varkkey, H. HD Industries. Land use. Labor This article provides a historical political economy perspective of the Indonesian oil palm plantation sector. It aims to shed light on the process of how Indonesia took over from Malaysia in becoming the world’s current largest producer of palm oil. This article argues that the regional trend of state-led development that relied on agribusiness as a major sector played a major role in the development of oil palm as an important crop in the region, especially in Malaysia and Indonesia. Indonesia specifically promoted and encouraged the expansion of oil palm as a way to fulfill state developmental aims; identifying it as a lucrative source of revenue, foreign exchange, and rural employment. With oil palm playing such an important role in the Indonesian economy, the state has outlined plans for rapid area expansion, to maintain its world dominance in the sector. Malaysian and Singaporean companies are currently major players in the Indonesian oil palm plantation sector, and continue to reap the benefits of this lucrative crop alongside local firms. Malaysian Palm Oil Board 2012-09 Article PeerReviewed application/pdf en http://eprints.um.edu.my/8380/1/opiejv12n2-helena.pdf Varkkey, H. (2012) The growth and prospects for the oil palm plantation industry in Indonesia. Oil Palm Industry Economic Journal, 12 (2). pp. 1-13. http://palmoilis.mpob.gov.my/index.php/oil-palm-industry-economic-journal
spellingShingle HD Industries. Land use. Labor
Varkkey, H.
The growth and prospects for the oil palm plantation industry in Indonesia
title The growth and prospects for the oil palm plantation industry in Indonesia
title_full The growth and prospects for the oil palm plantation industry in Indonesia
title_fullStr The growth and prospects for the oil palm plantation industry in Indonesia
title_full_unstemmed The growth and prospects for the oil palm plantation industry in Indonesia
title_short The growth and prospects for the oil palm plantation industry in Indonesia
title_sort growth and prospects for the oil palm plantation industry in indonesia
topic HD Industries. Land use. Labor
url http://eprints.um.edu.my/8380/1/opiejv12n2-helena.pdf
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