Palm oil was supposed to help save the planet – Instead, it unleashed a catastrophe

By Abrahm Lustgarten
20 November 2018
(The New York Times) – The fields outside Kotawaringin village in Central Kalimantan, on the island of Borneo, looked as if they had just been cleared by armies. None of the old growth remained — only charred stumps poking up from murky, dark pools of water. In places, smoke still curled from land that days ago had been covered with lush jungle. Villagers had burned it all down, clearing the way for a lucrative crop whose cultivation now dominates the entire island: the oil-palm tree.
The dirt road was ruler straight, but deep holes and errant boulders tossed our tiny Toyota back and forth. Trucks coughed out black smoke, their beds brimming over with seven-ton loads of palm fruit rocking back and forth on tires as tall as people. Clear-cut expanses soon gave way to a uniform crop of oil-palm groves: orderly trees, a sign that we had crossed into an industrial palm plantation. Oil-palm trees look like the coconut-palm trees you see on postcards from Florida — they grow to more than 60 feet tall and flourish on the peaty wetland soil common in lowland tropics. But they are significantly more valuable. Every two weeks or so, each tree produces a 50-pound bunch of walnut-size fruit, bursting with a red, viscous oil that is more versatile than almost any other plant-based oil of its kind. Indonesia is rich in timber and coal, but palm oil is its biggest export. Around the world, the oil from its meat and seeds has long been an indispensable ingredient in everything from soap to ice cream. But it has now become a key ingredient of something else: biodiesel, fuel for diesel engines that has been wholly or partly made from vegetable oil.
Finally we emerged, and as we crested a hill, the plantations fell into an endless repetition of tidy bunches stretching for miles, looking almost like the rag of a Berber carpet. Occasionally, a shard of an old ironwood tree shot into the air, a remnant of the primordial canopy of dense rain forest that dominated the land until very recently.
Our driver, a 44-year-old island native and whistle-blower named Gusti Gelambong, had brought us here to show us the incredible destruction wrought by the growing demand for palm oil. The oldest male among nine siblings, he was modestly built but exuded a wiry strength. His father, he told us, was a king of one of Borneo’s dozens of Dayak tribes, the sixth descendant of the sultan of Old Kotawaringin, and his mother came from a line of warriors who served in the Indonesian special forces. In 2001, he said, he took part in a brutal ethnic cleansing of Indonesians who had moved in from the nearby island of Madura. He macheted his way through the nearby town of Pangkalan Bun, slaughtering dozens of people. He felt no remorse about the violence. But the palm-oil companies, Gelambong said, were much stronger than the Madurese. As we approached an intersection, we could see two plantation guards lying back in a shack, rifles propped against their knees. He sped past the guards, averting his eyes.
Most of the plantations around us were new, their rise a direct consequence of policy decisions made half a world away. In the mid-2000s, Western nations, led by the United States, began drafting environmental laws that encouraged the use of vegetable oil in fuels — an ambitious move to reduce carbon dioxide and curb global warming. But these laws were drawn up based on an incomplete accounting of the true environmental costs. Despite warnings that the policies could have the opposite of their intended effect, they were implemented anyway, producing what now appears to be a calamity with global consequences.
The tropical rain forests of Indonesia, and in particular the peatland regions of Borneo, have large amounts of carbon trapped within their trees and soil. Slashing and burning the existing forests to make way for oil-palm cultivation had a perverse effect: It released more carbon. A lot more carbon. NASA researchers say the accelerated destruction of Borneo’s forests contributed to the largest single-year global increase in carbon emissions in two millenniums, an explosion that transformed Indonesia into the world’s fourth-largest source of such emissions. Instead of creating a clever technocratic fix to reduce American’s carbon footprint, lawmakers had lit the fuse on a powerful carbon bomb that, as the forests were cleared and burned, produced more carbon than the entire continent of Europe. The unprecedented palm-oil boom, meanwhile, has enriched and emboldened many of the region’s largest corporations, which have begun using their newfound power and wealth to suppress critics, abuse workers and acquire more land to produce oil. […]

To make Indonesia’s plan a reality, a complicated question of land ownership had to be addressed. Much of the new development was focused on Borneo, where many villages were settled before there were nations, let alone land deeds. To create a legal basis for development, the Indonesian government established a commercial land-share system in the 1980s. In theory, the system let villages sign over development rights in return for some part of the profit. But in practice, many villagers said, companies often secured the permits they needed through some combination of intense lobbying, bribery and strong-arming, and the result was broken promises and missing payments.
Villagers were often simply outmatched by their huge negotiating partners. Wilmar was already a powerhouse in 2007, with operations in 23 countries on four continents, employing more than 60,000 people. When Wilmar said it would buy more than 200,000 acres in the states surrounding Gusti Gelambong’s village, it was a signal for others, too, to rush in. One of Indonesia’s largest conglomerates, the Salim Group — which owns Indofood, the nation’s largest maker of instant noodles — said it would pay $13 million for 200,000 acres in East and Central Kalimantan. Anthoni Salim, the company’s chief executive, was closely tied to Suharto, Indonesia’s longtime dictator who was overthrown in 1998. When the dictatorship fell, an angry mob firebombed Salim’s family mansion in Jakarta, and the new government forced him to abandon dozens of holdings. Within a few years, though, Salim had rebuilt his empire. [more]

Palm Oil Was Supposed to Help Save the Planet. Instead It Unleashed a Catastrophe.