How China can help rewrite the future of Indonesian palm oil
Indonesian President Prabowo Subianto has launched a campaign against illegal palm oil plantations, seeking to reclaim millions of hectares of forest lost to unchecked expansion.
The authorities confirm that plantations on 3.7 million hectares are illegal, and more are under review. In Riau, the heart of Indonesia’s palm oil economy, the government has begun dismantling plantations in Tesso Nilo National Park and relocating families who have long lived within its shrinking forest boundaries.
Palm oil is often treated as a commodity, yet it is also a mirror of civilisation. Each hectare of forest cleared for palm oil erases wildlife and ecosystem services, and destroys the memory written into the land. Despite this, economic tables reduce the story to export and growth figures. Numbers present development, but behind them lies an arrangement where prosperity is bought at the expense of destruction.
Indonesia’s plantations cannot be understood in isolation from global demand. Each tree felled is linked to the appetite of markets abroad.
China’s choice carries consequences both economic and civilisational. Responsible sourcing would pressure Indonesian producers to raise standards, while reliance on cheap, unregulated oil would entrench illegality. The scale of China’s demand effectively determines the future of Indonesia’s forests. Shared responsibility and trust are the answer.
If responsibility is chosen, the first requirement is deforestation-free sourcing. This cannot be reduced to compliance paperwork. Traceability systems can support accountability, but real change comes when buyers reject the illusion of cheapness without cost. When integrity becomes essential, palm oil is transformed from a neutral commodity into a covenant. It becomes an agreement between grower and buyer.
China’s market strength makes this transformation possible. By rewarding responsible producers with long-term contracts and stable prices, it can turn sustainability into opportunity. Even small adjustments, scaled across its vast purchasing power, could shift industry behaviour.
Centuries ago, China built the Silk Road to connect civilisations. Today it has the chance to create a “Green Road”, where trade is woven not from erasure, but from justice and stewardship.
Dialogue will also matter. Indonesia worries that sustainability rules may conceal protectionist intent. Cooperation can ease this suspicion. Joint forums could harmonise standards, improve enforcement and build transparency. Such collaboration would do more than enforce compliance. It would signal a pact between two nations prepared to defend the living planet together through sustainable and responsible palm oil production.
Finance is another powerful tool. Chinese banks already fund firms in the palm oil supply chain. Redirecting these flows into sustainable projects would accelerate reform. Loans could prioritise replanting degraded land or developing traceability systems. Guarantees could reduce risks faced by smallholders. When financial resources are linked to responsibility, capital itself becomes a moral force. Investment decisions then shape not just economies but landscapes, communities and the meaning of progress.
Indonesia would gain deeply from such a transformation. Without markets that demand integrity, Prabowo’s crackdown risks losing strength. With China’s partnership, illegal plantations would lose profits while enforcement would gain power. Certified producers would thrive, rural villages would stabilise and forests would endure.
The future of palm oil would move beyond simple economics. It would mark a reconciliation between growth and guardianship, between ambition and care of the environment.
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