Impacts of oil palm plantation on the livelihood of the local communities and the conservation area

Abstract

Oil palm plantations have created so many controversies, particularly their impacts on the environment and the livelihood of the local communities. The controversies are usually raised by non-governmental organizations working on environmental and social-related issues. This paper focuses on the socio-economic impacts of plantation development. To observe what is going on, case studies were conducted in two villages strongly influenced by the development of oil palm plantation. The research finds out that those controversies are generally exaggerated. In general, economically the local communities benefit from the development of oil palm plantations. It does not mean that the negative socio-economic impacts are absent, but those impacts are manageable and have been addressed seriously, particularly when the plantation involves a member of Roundtable on Sustainable Palm Oil (RSPO). The real issue is not yes or no towards oil palm plantation, but rather how to develop oil palm plantation justly.