InfoSAWIT, JAKARTA – The first hundred days of President Prabowo Subianto's administration have been marked by policies emphasizing food and energy security as top priorities. One major plan announced is the expansion of 20 million hectares of palm oil plantations to support food and energy independence. However, this policy has drawn criticism for potentially exacerbating social and environmental crises.
Concerns have been raised that this palm oil expansion could accelerate deforestation, worsen agrarian conflicts, and neglect the rights of workers and indigenous communities. These worries intensified following a meeting between President Prabowo and Malaysian Prime Minister Anwar Ibrahim on January 27, 2025, which discussed economic cooperation, including in the palm oil sector. However, according to TuK INDONESIA and the Transnational Palm Oil Labour Solidarity (TPOLS), the discussions between the two leaders did not sufficiently address the environmental and social impacts of palm oil industry expansion.
In the report "Banking on Biodiversity Collapse 2024" released by Forests & Finance, it was noted that over 50 major banks worldwide continue to fund sectors that risk damaging tropical forests, particularly in Indonesia and Malaysia. From 2016 to June 2024, a total of USD 89.17 billion (approximately IDR 1,289.59 trillion) has been allocated to projects directly related to deforestation, land conversion, and violations of indigenous rights.
While the palm oil sector significantly contributes to the economy, it is also a leading cause of tropical forest loss and land grabbing. Amid global pressures for sustainability, the European Union has implemented the European Union Deforestation Regulation (EUDR), which prohibits the import of products resulting from deforestation. If palm oil expansion is not managed properly, Indonesia and Malaysia risk losing access to the EU market, which has stringent sustainability standards.
In addition to environmental issues, the palm oil expansion policy is also seen as potentially worsening social conditions, particularly for Indonesian migrant workers in Malaysia. They often face poor working conditions, low wages, long hours, and high risks of workplace accidents. Unclear legal status also makes them vulnerable to exploitation and forced deportation.
Rizal Assalam, Coordinator of the TPOLS Network, stated that palm oil expansion will exacerbate agrarian conflicts and tensions between workers and local communities. "Currently, land conflicts in Seruyan and the struggles of the Buol Plasma Farmers Forum have yet to find a fair resolution. Palm oil expansion does not automatically bring prosperity to low-wage workers or communities losing their land," Rizal emphasized in an official statement received by InfoSAWIT on Wednesday (February 5, 2025). He urged the government to reconsider the expansion plan and begin adapting to global policies like the EUDR.
Linda Rosalina, Director of TuK INDONESIA, stressed that economic cooperation between Indonesia and Malaysia should also prioritize the welfare of small farmers and the protection of indigenous rights. Before Prabowo's administration, Malaysian investment in Indonesia's palm oil sector reached IDR 49 trillion, or about 30% of total national palm oil investment. The two largest investors, Permodalan Nasional Bhd and the Employees Provident Fund, reportedly have investments of IDR 23.24 trillion and IDR 15.23 trillion, respectively.
"The governments of Indonesia and Malaysia cannot continue to ignore the serious impacts of palm oil expansion. They must ensure that this industry not only meets global standards but also focuses on sustainability and community welfare," Linda stated.
In this context, the government is expected to not only prioritize political commitments on paper but also implement policies that genuinely protect the environment and social rights. If strict oversight of deforestation, a transparent due diligence system, and the protection of community rights are not prioritized, then the food and energy security policies of the Prabowo era could worsen social inequality and intensify environmental crises. (T2)
