iip albanjary

What is the role of companies in the era of sustainable development?  It easy to understand that companies are contributing to economy and world growth at various levels; from local to global by creating value added of goods and services. In term of oil palm plantation, large scale companies alter land monetary value to some degree higher by producing palm oil from the plantation.

But, the world is changing and more people considering social and environmental value. Companies are now working not only for profitability only and neglecting their environment.  How the oil palm companies dealing with this issue?

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Today deforestation always linked to some issues : biofuel demand, settlement development and agrarian reform. A recent news from Brazil informs causes of deforestation in Amazon forest region is linked to agrarian reform implemented by government.

In Indonesia,most deforestation are linked to agriculture expansion and settlement development. In recent years, tropical forests also threatened by the expansion of oil palm plantation as world’s demand on biofuel is raising. In fact, oil palm plantation are built close to forests areas or degraded forest areas. Government of Indonesia has reserving some forests areas called conversion forests to be converted to other land uses including plantation.

Now, more countries are moving up to halting deforestation using global mechanism called REDD (Reducing Emissions from deforestation and degradation). Although the mechanism is still testing in some places, the mechanism has potential advances to limiting the impact of deforestation on climate change. Deforestation is known as a significant contributor of carbon emission.

I agree with argument on the development of biofuel threatening Indonesia food security. It happen mainly through land conversion. In the next decades, biofuel crops will dominate agricultural land and decreasing forest land.

Today I read a 2006 publication on agricultural land conversion. It says that the accelerating rate of conversion of agricultural lands in mainly caused by very low incentives to work in agriculture compared to industrial and service sectors. I try to link it with biofuel development.

Commodity price is significant factor in all agricultural bussines. Increasing demand of biofuel lead to the higher price. Thus, farmers will change their commodity to biofuel crops. Biofuel crops seems attractive, but we need to consider about its economic scale. In which land the biofuel crops plantation will economically feasible?

Biofuel crops plantation may feasible in outside java. Oil palm plantations show obvious evidence. Some publications also show about the environmental impacts of oil palm plantation expansion.

And, talking about food security it’s not about land an sich. Food could be physically available, but how about the price? We must make sure that we have good food with affordable price. ~

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