Greening palm oil

Can agricultural intensification reduce the environmental externalities of palm oil?

Agricultural productivity, poverty, and the environment

Fresh fruit bunches

Project overview

Global palm oil demand casts a long shadow by contributing to deforestation, a major driver of climate change and biodiversity loss. Indonesia’s People’s Palm Oil Replanting Program (PSR) aims to combat this by encouraging smallholder farmers to improve productivity on existing palm oil plantations, reducing the need for further deforestation. Unfortunately, low enrollment rates hinder the program’s effectiveness in achieving its environmental and socio-economic goals.

Using field experimental methods, this project aims to identify solutions to the PSR’s enrollment challenges. By rolling out the most promising solutions in a randomized controlled trial, we seek to understand how to best reduce the well-documented environment-development trade-offs associated with Indonesia’s recent agricultural development, thereby advancing sustainable development in Indonesia and beyond.

Working with J-PAL South East Asia, we are currently developing and piloting three interventions with smallholders in South Sumatra.

Field work trip to Musi Banyuasin in January 2024. Learning about the oil content of different palm oil varieties and quality standards.

Research team

Collaborators on this project include

  • Ryan Edwards (Crawford School of Public Policy, Australian National University)
  • Alin Halimatussadiah (Institute for Economic and Social Research Faculty of Economics and Business Universitas Indonesia)
  • Elan Satriawan (Universitas Gadjah Mada and National Team for the Acceleration of Poverty Reduction, TNP2K)

Funding

This pilot project received support from a KONEKSI Environment and Climate Change Collaborative Research Grant

Left: Fresh fruit bunch. Right: stakeholder engagement with the District Plantation Office in Musi Banyuasin.