Peatlands, Oil Palm, and Sustainability in Indonesia: A Review of Hydrological Governance, Environmental Trade-offs, and Socioeconomic Futures
DOI:
https://doi.org/10.59890/ijgsr.v4i4.216Keywords:
Tropical Peatland, Oil Palm, Sustainability Governance, Water-Table Management, Subsidence, Peat Fire, Greenhouse Gas Emissions, Rewetting, IndonesiaAbstract
Tropical peatlands are globally significant carbon stores, but they become highly vulnerable to degradation when drained and cleared for agricultural production, including oil palm cultivation. In Indonesia, oil palm cultivation on peat is both economically consequential and environmentally contested, with central debates focusing on greenhouse gas (GHG) emissions, subsidence, peat fires, biodiversity loss, and the credibility of sustainability governance through standards and regulation. This qualitative literature review synthesizes post-2020 scientific and policy-relevant scholarship alongside foundational Indonesian peat–oil palm discussions to clarify what is known, what remains disputed, and what conditions shape divergent findings. The review applies a thematic synthesis centered on hydrological governance (water-table management, drainage infrastructure, and rewetting/restoration) because it has been consistently positioned that groundwater level (GWL)/muka air tanah (MAT) as the “hinge” connecting local biophysical outcomes (subsidence and fire vulnerability) to global climate claims (CO2-equivalent emissions). Evidence from recent peer-reviewed studies indicates that the climate impact of peat conversion is strongly time-dependent, with particularly high emissions during early conversion stages and continued net carbon losses through oil palm rotations in many settings. At the same time, recent work also points to substantial mitigation potential from rewetting interventions (e.g., canal blocking) in specific contexts, while warning about implementation constraints and livelihood implications, especially for smallholders. The article concludes by outlining policy and management pathways that treat peatland oil palm sustainability as a problem of risk-governed trade-offs rather than a binary “sustainable/unsustainable” label
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