Proceedings of the 1st Economics and Business International Conference 2017 (EBIC 2017)

The Reforestation through Oil Palm Plantation in Sumatra Island

Authors
Jan Horas Veryady Purba
Corresponding author
Jan Horas Veryady Purba
Keywords
Sumatra Island; reforestation; oil palm; degraded land
Abstract
The Sumatra Island is one of the important islands that has the largest contribution in the development of plantations in Indonesia. Some of the world's important commodities are produced on the Sumatra Island and deliver Indonesia into an important producing country in the world. The purpose of this study, is to examine whether the palm oil industry is becoming a "driver" of deforestation on the Sumatra Island. The method of analysis is descriptive, using secondary data from 1950 to 2016, from Forestry Statistics, Plantation Statistics. The theory Multifunctional Agriculture is used to understand the process of reforestation. Indonesia is one of the important countries as a producer of several world commodities. Indonesia is among the top 5 in four world commodities, namely palm oil, cocoa, rubber and coffee. Oil palm, rubber and coffee have the largest share compared to other commodities on Sumatra Island. 63 percent of 11.3 million hectares of oil palm, is on the Sumatra Island. Based on Citra Landsat and other research data, shows that Sumatra oil palm plantation comes from the degraded land of 7 percent, agricultural land conversion 71 percent, degraded land forest 18 percent and protected forest 4 percent. The conversion of forests to non-forests in Sumatra is mostly 88 percent used for other sectors, and only 12 percent is used for oil palm plantations. In other words, oil palm plantations are not drivers of deforestation in Sumatra.
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