ABSTRACT
This chapter explores the drivers behind palm oil-related deforestation in Indonesia and the environmental impact of such deforestation, and identifies some of the major companies and business practices responsible. Rampant clearing for oil palm plantation development is one of the chief drivers of the deforestation. Government corruption and nepotism played a large role in the expansion of palm oil; in particular, former President Suharto distributed large tracts of forest to cement political relationships with army generals, and it is thought that his relatives and business associates still control much of the Indonesian palm oil industry. Bumitama Agri serves as a good example because its business practices provide a good microcosm of the flaws of the oil palm industry as a whole. The environmental impacts of uncontrolled deforestation are varied and severe. One of the most immediately obvious effects is habitat loss.
