Oil Palm Policy, Land Use Change and Community Livelihoods (OLCL) in Indonesia: A Sustainability Framework

The global demand for crude palm oil (CPO) has continuously increased with enormous economic benefits for governments and producers. To maximize the benefits, government policies have aimed at increasing CPO production usually through increasing the total harvested area (THA). However, increasing CPO production with the increase in THA results in both land use and livelihood changes. Modeling the complex relationship that exists between oil palm production and issues of land use and livelihoods changes holds the key to understanding their determinants and sustainability approach. At this stage, the conceptual framework was developed with targets of formulating evidence based policies with better economic, environmental and social outcomes using a 24years historic data with the simultaneous equations modeling technique.

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