<![CDATA[The dynamics of the palm oil industry in Indonesia are closely linked to economic growth while also generating pressure on environmental sustainability. This study aims to analyze the dynamics of the palm oil industry in relation to economic growth and deforestation and to identify the challenges of achieving sustainable development in Indonesia. The study employs a descriptive qualitative approach through a literature review of 20 scientific articles obtained from Google Scholar. The synthesis results indicate that the palm oil industry contributes to Indonesia’s economy through exports, employment creation, and regional development. On the other hand, plantation expansion is associated with deforestation, habitat degradation, and increased greenhouse gas emissions. Efforts to promote sustainability through ISPO and RSPO certification, the use of digital technologies, and downstream industrial development continue to face challenges, including weak regulatory enforcement, low compliance among some industry actors, and limited access to and understanding of sustainable practices among smallholders. These findings highlight the need to strengthen governance, monitoring, technological utilization, and downstream development strategies to increase the industry’s added value without encouraging further conversion of forest areas. Dinamika industri kelapa sawit di Indonesia berkaitan erat dengan pertumbuhan ekonomi sekaligus tekanan terhadap kelestarian lingkungan. Penelitian ini bertujuan untuk menganalisis dinamika industri kelapa sawit dalam kaitannya dengan pertumbuhan ekonomi dan deforestasi serta mengidentifikasi tantangan pembangunan berkelanjutan di Indonesia. Penelitian menggunakan pendekatan deskriptif kualitatif melalui studi literatur terhadap 20 artikel ilmiah yang diperoleh dari Google Scholar. Hasil sintesis menunjukkan bahwa industri kelapa sawit berkontribusi terhadap perekonomian Indonesia melalui ekspor, penciptaan lapangan kerja, dan pembangunan daerah. Di sisi lain, ekspansi perkebunan berkaitan dengan deforestasi, degradasi habitat, dan peningkatan emisi gas rumah kaca. Upaya mendorong keberlanjutan melalui sertifikasi ISPO dan RSPO, pemanfaatan teknologi digital, dan hilirisasi masih menghadapi kendala berupa lemahnya penegakan regulasi, rendahnya kepatuhan sebagian pelaku usaha, serta keterbatasan akses dan pemahaman petani terhadap praktik keberlanjutan. Temuan tersebut menunjukkan perlunya penguatan tata kelola, pengawasan, pemanfaatan teknologi, dan strategi hilirisasi untuk meningkatkan nilai tambah industri tanpa mendorong perluasan konversi kawasan hutan.]]>
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