The Impact of Oil Palm Plantations on the Environment and the Economy of Local Communities

Wahyu Kurniadi (Mahasiswa Fakultas Ekonomi Dan Bisnis (Alumni),Universitas Jambi, Indonesia)

Siber International Journal of Advanced Law
Vol. 3 No. 2 (2025): Siber International Journal of Advanced Law (October - December 2025)

Palm oil plantations play a crucial role in Indonesia’s economy, particularly as one of its leading export commodities. However, the expansion of palm oil plantations has caused significant environmental impacts, including deforestation, biodiversity loss, and soil and water pollution. On the other hand, palm oil plantations also contribute to the local economy by providing job opportunities, increasing income, and improving infrastructure development. This study aims to analyze the impact of palm oil plantations from two main perspectives: the environment and the local economy, highlighting the importance of sustainable management to maintain the balance between economic development and environmental conservation.