Slowing deforestation rates in Indonesia were linked to a drop in the market value of crude palm oil, an indication that trends reflect fluctuating commodity prices, according to our new published in PLOS One journal.
We show that expansion of industrial plantations and forest loss was closely correlated with palm oil prices. Through a satellite survey conducted from 2001 to 2019 over Indonesia, we took stock of and estimated the impact of large-scale and smallholder oil palm plantations on natural old-growth, or primary, forests.
“Deforestation rates fell below pre-2004 levels from 2017 to 2019, providing an opportunity to focus on sustainable management. “The price of palm oil has doubled since the beginning of the COVID-19 pandemic, making effective regulation and oversight key to preventing further forest conversion.”
Historically, a price increase of 1 percent was associated with a 1.08 percent increase in new industrial oil palm plantations and a 0.68 percent increase in forest loss. Continue reading here.