Between Discourse and Field: The Socio-Environmental Impacts of Chinese Foreign Direct Investment in Indonesia's Palm Oil Sector

Abstract

Indonesia's palm oil industry, the world's largest supplier, faces significant scrutiny because of its severe environmental and social impacts. The expansion of Chinese companies in this sector has raised concerns about exacerbating existing problems. This study examines the case of Jade (pseudonym), a Chinese-owned palm oil company, to assess the socio-environmental consequences of Chinese investments in Indonesia. Employing a dual methodology combining an analysis of public discourse with primary field data, the research reveals the complexity and contradictions within Chinese, global and local perspectives on the company's operations, highlighting a collision of priorities: Economic growth, environmental protection and governance reform. At the field site, unresolved land disputes and weak governance have created a fragile balance between local resistance and the company's partial compromises. Although Chinese companies are often perceived as autonomous entities advancing national interests, this study underscores how their activities are deeply embedded in Indonesia's political, historical and cultural contexts, exposing them to systemic challenges in the palm oil sector. The study also critiques the ‘global ecological civilisation’ concept, arguing that China's non-interference stance, by avoiding engagement with entrenched local conflicts, risks undermining efforts to achieve meaningful socio-environmental progress.