Introduction : The Sustainability of Indonesian Palm Oil Industry
The words ecology and economy have the same root in the classic Greek word “oikos” – household. But while the two words have the same root, in the real world the economic and ecological interests do not always match. Tensions between developmentalists and ecologists have long been with and among us, and tend to lead to win-lose situations. In sustainable development these two streams should meet with the result of a win – win situation.
The development of Indonesian oil palm plantations and industry has become an example of sustainable development. Agribusiness connects business and nature and therefore combines ecological, economic and social functions. In the case of oil palm plantations it can meet the standards of sustainable development.
This publication is titled “The Sustainability of Indonesian Palm Oil Industry”. It claims that the palm oil industry contributes to sustainable development and reveals, through empirical evidence, the contribution of the oil palm plantations and related industries to four aspects of sustainability namely: environmental preservation, inclusive growth, rural development and poverty reduction.
Oil palm plantations make a huge contribution to environmental conservation through the ecological function of the oil palm, which is a very unique tree indeed. Moreover, oil palm plantations play a key role in local rural development, income creation and poverty reduction in the country.
There are many development issues of a strategic nature, and these need to be studied more deeply to yield intellectual and applicable results which will help improve the concept and direction of the sustainable economic development. It has shown that there is a need for organizations such as the Palm Oil Agribusiness Strategic Policy Institute (PASPI), as the think tank par excellence for strategic studies of palm oil industry.
I appreciate the hard work by PASPI in completing this study. I hope that the research will lead to
increasingly sustainable development of oil palm plantations and the palm oil industry.