2022
DOI: 10.1177/00220027221084826
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Oil Crops and Social Conflict: Evidence From Indonesia

Abstract: When do agricultural transformations impact social stability? Cash crops are typically associated with economic prosperity and social peace. I argue agricultural booms may spur violent conflict over resource allocation by pitting would-be producers against incumbent landowners when the gains from production are concentrated and the negative externalities are diffuse. I study the rapid expansion of oil palm in Indonesia, a growingly important crop in the global economy. I find when oil palm grows more valuable … Show more

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Cited by 8 publications
(2 citation statements)
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References 38 publications
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“…For instance, a study conducted in Papua has estimated that the benefits of virgin forest ecosystem services are valued at around $3,795 ($ -The United States Dollar) per ha annually, while the economic profits of oil palm cultivation are projected to be $2,153 per ha per year, resulting in a yearly loss of $1,642 per ha (Acosta and Curt, 2019). Another study conducted in Indonesia has calculated the costs of social conflicts arising from oil palm expansion, ranging from $22 million to $460 million per year (Grasse, 2022). Sumarga and Hein (2016) have also estimated that the deforestation costs of oil palm expansion in Southeast Asia are between $22 billion and $227 billion annually, depending on the assigned policy scenarios.…”
Section: Monetary Quantification Of Environmental and Social Costs Of...mentioning
confidence: 99%
“…For instance, a study conducted in Papua has estimated that the benefits of virgin forest ecosystem services are valued at around $3,795 ($ -The United States Dollar) per ha annually, while the economic profits of oil palm cultivation are projected to be $2,153 per ha per year, resulting in a yearly loss of $1,642 per ha (Acosta and Curt, 2019). Another study conducted in Indonesia has calculated the costs of social conflicts arising from oil palm expansion, ranging from $22 million to $460 million per year (Grasse, 2022). Sumarga and Hein (2016) have also estimated that the deforestation costs of oil palm expansion in Southeast Asia are between $22 billion and $227 billion annually, depending on the assigned policy scenarios.…”
Section: Monetary Quantification Of Environmental and Social Costs Of...mentioning
confidence: 99%
“…In addition to the ambiguity of land ownership status, Grasse (2022) highlights the significant role of industrial expansion in exacerbating agrarian conflicts in Indonesia. In this context, the Omnibus Law on Job Creation (UU Cipta Kerja) provides ease for investors to invest in Indonesia, yet often without seriously considering potential agrarian conflicts arising from the development of industrial infrastructure (Abdulgani et al, 2023).…”
Section: Introductionmentioning
confidence: 99%