1. be converted to plantations. In Nunukan district (East
Kalimantan), the Bupati (Head of District) is planning
to convert 230,000 hectares of land for oil palm
plantations.
In Malaysia, a significant amount
of forests has been and is being
converted into plantations. In the
1980s, only 1 percent of Sabah's
land area was planted with oil palm.
In 1998, 11 per cent or about
842, 496 hectares of Sabah's land
area is planted with oil palm.
Currently, new plantations are being
developed from forest land in the
Labuk-Sugut district, Tongod, as
well as in Kinabatangan and lower
Sagama.
Forest conversion activities have
also led to a string of environmental
problems such as flooding (where
palms are planted on floodplain
land), soil loss and river
sedimentation.
WWF believes the solution lies in putting the concept
of sustainability into practice. By adopting responsible
practices, plantations are not only able to tackle
environmental issues wisely, but also maintain
productivity.
The loss of High
Conservation Value
Forests has
inevitably led to the
loss of important
animal and plant
species.
World production of
palm oil: Some facts
and figures
!!!!! Palm oil is the second
most important oil after soy oil,
producing 23.18 million tonnes
(2001) or 19.8 per cent of the
total production of 17 oils and
fats.
!!!!! Malaysia is currently
the world's largest palm oil
producer, contributing 50.9 per
cent of total global production.
Indonesia comes second,
accounting for 32.3 per cent.
!!!!! It was reported by the
Jakarta Post (February 28,
2003) that conversions of forests
into oil palm plantations in
Indonesia has reached 200,000
hectares per year since 1997.
!!!!! Between 1990-2002,
Malaysia's oil palm area
increased by 1.6 million
hectares. Over the same time
period, oil palm expansion was
most extensive in Sabah where
it increased from 276,171.
The Forest Stewardship Council (FSC) defines a High Conservation Value Forest (HCVF) as a forest of outstanding and critical
importance due to their environmental, socio-economic, biodiversity or landscape values (www.fscoax.org).
1
The Palm Oil Profile
O
ver the past decades, the global oil palm
industryhaswitnessedincredibleproduction
growth.This is especially
so in Malaysia and Indonesia where
land has been available for
conversion.
Duetothehighdemandforthecrop,
oil palm plantation areas in
Malaysia expanded from 1.7
million hectares in 1990 to 3.37
million hectares in 2002. In
Indonesia, the areas used for oil
palm plantations have expanded
from 1.1 million hectares in 1991
to 4.1 million hectares in 2002 .
Globally, oil palm area increased by
43 per cent from approximately 6
million hectares in 1990 to 10
million hectares in 2002.
Looking at the current trend, the
palm oil industry is set to grow even
more. This means that more forest
areas will be converted for oil palm
plantations. In most cases, these
forests are not just ordinary forests.
The same prime oil palm lands may
also contain High Conservation
Value Forests (HCVFs).
In Indonesia, the expansion rate of oil palm plantation
is rapidly increasing.The Papua province has allocated
approximately 3 million hectares of mainly forests to
1
WWF-Malaysia
2. What are Better Management Practices?
The development of Better (or Best) Management Practices (BMPs) for oil palm plantations has been driven by
the rationale that these practices enhance the overall productivity of the operations. It illustrates the industry's
positive efforts to protect the environment from its own footprint. WWF believes that BMPs are important
tools to ensure sound land use policies and good plantation management.
The lack of uniformity or consistency in implementing BMPs by industry members has become a cause of
concern for both the industry and WWF. In addition, BMPs have not adequately addressed conservation-
related issues that represent one pillar of sustainability, such as managing conflicts with wildlife.
Unsustainable practices result in the loss
of important ecosystems
An aerial view of a flooded oil palm plantation
WWF-Malaysia WWF-Malaysia
1
GAPKI stands for Gabungan Pengusaha Kelapa Sawit Indonesia or Indonesian Palm Oil Producers’ Association
BMPs in BriefBMPs in BriefBMPs in BriefBMPs in BriefBMPs in Brief
! HCVF: Provides a tool to identify High Conservation Values at the landscape and
plantation level for management.
! Human-wildlife conflict resolution: Generates guidelines for managing human-
wildlife conflicts at the plantation and district/regional levels. These include guidelines
for the establishment and/or maintenance of wildlife corridors, riparian reserves or
forest reverts.
! Habitat conservation & restoration: Conserves forest areas within plantation area to
enhance its natural biodiversity. This includes areas classified as unsuitable for oil palm
cultivation.
! Restoring and avoiding land tenure conflicts: Identifies potential dispute
resolutions with local communities with claims over lands that are appropriated for new
plantations, e.g. customary resources and land rights of indigenous peoples.
! Zero Burning: Non-polluting commercial techniques for land preparation.
! Integrated Pest Management (IPM): Management of pest populations by using a
mix of suitable techniques in plant protection that minimises damage to the
environment.
! Waste minimisation and utilisation: The efficient use of field residues to minimise
pollution generated in palm oil production.
3. What WWF is doing
Globally, WWF has worked to promote sustainable practices within the oil palm and soy industry through its
Forest Conversion Initiative. The Forest Conversion Initiative was set up to ensure that forests of high
conservation value are no longer threatened by the expansion of palm oil and soy.
Since1999,WWF-Malaysiahascollaboratedwiththeoilpalmindustrytobuildgreaterenvironmentalawareness
andpromoteBetterManagementPractices(BMPs).TogetherwiththeMalaysianPalmOilAssociation(MPOA),
WWF-Malaysia has been conducting numerous dialogue sessions and seminars to promote BMPs in a more
integrated manner within the industry.
In Indonesia, the second largest producer country, WWF-Indonesia has opened dialogue and built a common
platform where industry representatives (e.g. GAPKI and several companies) and the government work
together to promote BMPs. These include mitigating human-elephant conflicts as well as identifying and
managing HCVF in Riau and other plantation areas.
Why is it important for oil palm companies to
implement BMPs?
! A management solution or potential reduction in wildlife impacts on plantations
reduces unnecessary crop loss.
! Proper land-use policies minimise unnecessary environmental problems and increase
productivity per hectare.
! A reduction in pollution will result in a better environment.
! Enhances corporate image and competitive edge.
! Maintaining a responsible corporate image will reduce potential conflicts with the
surrounding communities and avoid future reputational or financial risks.
! Efficient waste management is cost-effective.
! Maximum use of field residues generates renewable energy source for mills.
! Residues generate additional income for company such as animal feed or raw
materials in the wood-based industries.
Effluent Pond - Where
field residues are processed
for assorted usage.
Shredding palm trunks is a
common non-polluting
practice in plantations.
Beneficial plants help
biological control of pests.
Riparian reserves conserve
biodiversity within
plantation areas.
Golden Hope Plantations Golden Hope Plantations Golden Hope Plantations WWF-Malaysia
4. For more information on how your
company can be actively involved
in the development of BMPs,
please contact:
WWF Malaysia
49 Jalan SS 23/15
47400 Petaling Jaya
T: + 603 7803 3772
F: + 603 7803 5157
E-mail: ang@wwf.org.my
National Coordinator for
Sustainable Palm Oil in Indonesia
WWF Indonesia
Kantor Taman A9, Unit A-1,
Jl. Mega Kuningan, Lot 8-9/A9
Kawasan Mega Kuningan, Jakarta 12950
Indonesia
T: +62-21-5761070 ext. 502
F: +62-21-5761080
Email: fardiansyah@wwf.or.id
WWFForest Conversion Initiative
Coordination Office
WWF Switzerland
Hohlstrasse 110
CH-8010 Zürich
Switzerland
T: +41 1 297 21 21
F:+41 1 297 21 00
info.conversion@wwf.ch
Acknowledgements
Golden Hope Plantations Berhad
United Plantations Berhad
WWF- International (Asia Pacific Forest
Futures Programme)
WWF-Malaysia
WWF-Switzerland
The Future of a Sustainable Oil
Palm Industry:
What's Next?
Today, environmental concerns in the oil palm industry are
becoming serious issues that need serious consideration by
stakeholders. Worldwide, consumers are becoming more sensitive
and aware of the origins of the products they purchase. They are
increasingly demanding for products from sustainable sources.
In maintaining consumer confidence and thus, ensuring the future
ofouroilpalmindustry,theindustryneedstoimplementthevarious
Better Management Practices (BMPs) in a consistent and effective
manner.
Your plantation's choice affects the environment and future
generations. Let's steer the industry towards greater
sustainability.
WWF’s mission is to achieve the conservation of nature and ecological processes by:
- Preserving genetic, species and ecosystem diversity;
- Ensuring that the use of renewable natural resources is sustainable both now and in the
longer term, for the benefit of all life on earth;
- Promoting actions to reduce, to a minimum, pollution and the wasteful exploitation and
consumption of resources and energy;
WWF’s ultimate goal is to stop, and eventually reverse, the accelerating degradation of our planet’s
natural environment, and to help build a future in which humans live in harmony with nature.
Sustainable practices within the industry ensure
a future for both the environment and industry.
