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Oil Palm Plantations and Transboundary Haze: Patronage Networks and Land Licensing in Indonesia’s Peatlands

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Abstract

Peatlands in Indonesia are protected by regulations that forbid the conversion of these lands into plantations. However, peat fires here have been found to be a major source of smoke that travels across national boundaries creating regional haze. Despite these regulations, more than a quarter of all Indonesian oil palm plantations are on peat. This paper argues that patronage networks within the Indonesian oil palm sector have been a major factor in the unsustainable use of peatlands there. Rampant patronage politics have made it easy for well-connected companies to skirt regulations to obtain licenses for these lands. Decentralization has further encouraged this practice at the regional level, as regional elites are eager to reap the benefits of local investments. In addition, clients are able to exert their influence over state decision-making to ensure that any changes to the licensing process does not jeopardize their access to these lands. These converted lands are highly fire-prone. Furthermore, some companies have been found to use fire as a cheap way to clear the land for planting. Hence, this paper argues that transboundary haze in Southeast Asia can be traced back to the ongoing oil palm boom in Indonesia, bolstered by patronage networks.

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Notes

  1. For example, Presidential Decree No. 32/1990, Indonesian Government Regulation No. 26/2008 states that peat of more than 3 m deep should automatically be designated as protected areas (PanEco Foundation 2008; Ministry of Forestry 2009). The Regulation of the Ministry of Agriculture No. 14/2009 stipulates that if there is a concession in peatlands with an area of more than 30 % of its total concession having a peat thickness of more than 3 m, then the entire concession should not be opened (Wibisino et al. 2011). Ministry of Agriculture guidelines identify areas of peat more than 76 cm deep peat as unsuitable for conversion to agriculture (Ministry of Forestry 2009). The Ministry of Agriculture’s Instruction to the Governors of Indonesia No. 301/TU.210/M/12/2001 (13 December 2007) states that the issuing of new plantation concessions on peatlands are temporarily forbidden, pending further instructions. These policies are elaborated in detail in the discussion section of this paper.

  2. For further evidence of these networks of relationships between plantation firms and governments at the central and local level, seenVarkkey 2012)

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Acknowledgments

The author would like to thank interviewees from the media, government and civil society in Indonesia, Malaysia and Singapore who willingly shared information and insight for this paper. The author would like to also thank the University of Malaya and the University of Sydney for a scholarship and travel grant, respectively for the completion of this research paper.

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  1. Department of International and Strategic Studies, University of Malaya, 50603, Kuala Lumpur, Malaysia

    Helena Varkkey

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  1. Helena Varkkey
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Correspondence to Helena Varkkey.

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Varkkey, H. Oil Palm Plantations and Transboundary Haze: Patronage Networks and Land Licensing in Indonesia’s Peatlands. Wetlands 33, 679–690 (2013). https://doi.org/10.1007/s13157-013-0423-z

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