• Erwinsyah Universitas Indraprasta PGRI




market competitiveness, carbon emissions, oil palm trade, GDP, sustainable practices


In Indonesia's oil palm commerce, this study investigates at the relationship between population growth, economic growth, market competitiveness, and export trade with carbon emissions. Time-series data from 1995 to 2021 collected from statistical sources is used in this study. This link is computed and analyzed using the econometric method. Lower carbon emissions in oil palm exports are correlated with sustainable practices and market competitiveness. To disentangle trade growth from environmental effect, sustainable land-use practices, deforestation reduction, and transparent supply chains are crucial. Given the erratic correlation between GDP and carbon emissions, striking a balance between economic expansion and environmental protection is imperative. Population expansion drives efforts to lower carbon footprints by influencing environmental awareness and the market for oil palm. Well-given initiatives such as clean technology, certification support, and sustainable trade policies have policy repercussions. Policymakers, industry players, and environmental groups working together can guarantee Indonesia's oil palm exports' long-term sustainability and ecological viability.


Afolayan, O. T., H. Okodua, H. Oaikhenan, and O. Matthew. 2019. Carbon Emissions, Human Capital Investment and Economic Development in Nigeria. International Journal of Energy Economics and Policy 10(2): 427–437. http://dx.doi.org/10.32479/ijeep.8476.

Alamsyah, Z., A. Mara, N. F. Rayesa, E. Hamid, M. Yanita, G. Fauzia, and D. M. T. Napitupulu. 2023. Oil Palm Contribution to SDGs Achievement: a Case Study in Main Oil Palm Producing Provinces in Indonesia. E3S Web of Conferences 373(04030). https://doi.org/10.1051/e3sconf/202337304030.

Amundsen, V. S. and T. C. Osmundsen. 2020. Becoming Certified, Becoming Sustainable? Improvements from Aquaculture Certification Schemes as Experienced by Those Certified. Marine Policy 119(104097): 1-8. https://doi.org/10.1016/j.marpol.2020.104097.

Ariyanto, A., Y. Syaukat, S. Hartoyo, and B. M. Sinaga. 2020. Technology Adoption and Technical Efficiency of Oil Palm Smallholder Plantation in Riau and West Kalimantan. Jurnal Manajemen & Agribisnis 17(3): 239-253. https://doi.org/10.17358/jma.17.3.239.

Arsyad, M., A. Amiruddin, Suharno, and S. Jahroh. 2020. Competitiveness of Palm Oil Products in International Trade: An Analysis between Indonesia and Malaysia. Caraka Tani: Journal of Sustainable Agriculture 35(2): 157-167. https://doi.org/10.20961/carakatani.v35i2.41091.

Austin, K. G., R. Heilmayr, J. J. Benedict, D. N. Burns, M. Eggen, H. Grantham, A. Greenbury, J. K. Hill, C. N. Jenkins, M. S. Luskin, T. Manurung, L. V. Rasmussen, G. Rosoman, B. Rudorff, M. Satar, C. Smith, and K. M. Carlson. 2021. Mapping and Monitoring Zero- Deforestation Commitments. BioScience 71(10): 1079-1090. https://doi.org/10.1093/biosci/biab082.

Ayompe, L. M., M. Schaafsma, and B. N. Egoh. 2021. Towards Sustainable Palm Oil Production: The Positive and Negative Impacts on Ecosystem Services and Human Wellbeing. Journal of Cleaner Production 278(123914): 1-11. https://doi.org/10.1016/j.jclepro.2020.123914.

Bintariningtyas, S. and A. H. Juwita. 2021. Perkebunan Kelapa Sawit dalam Pengentasan Kemiskinan di Provinsi Kalimantan Tengah. Forum Ekonomi 23(2): 199-205. https://doi.org/10.30872/jfor.v23i2.9389.

Birdsall, N. 1992. Another Look at Population and Global Warming. Working Paper. World Bank. Washington, DC.

Brenton, P. and V. Chemutai. 2021. The Trade and Climate Change Nexus: The Urgency and Opportunities for Developing Countries. The World Bank. Washington, DC.

Chan, S., N. Weitz, A. Persson, and C. Trimmer. 2018. SDG 12: Responsible Consumption and Production. A Review of Research Needs. Technical Annex to the Formas report Forskning för Agenda 2030: Översikt av forskningsbehov och vägar framåt. Stockholm Environment Institute. Stockholm.

Dauda, S. A., S. F. Sidique, T. Y. Sheng, and M. Djama. 2021. Consumer Preference for Certified Sustainable Palm Oil with Environmental Sustainability Attributes: A Choice Experiment Approach. Estudios de Economia Aplicada 39(4): 1-13. https://doi.org/10.25115/eea.v39i4.4570.

Dinda, S. 2004. Environmental Kuznets Curve Hypothesis: A Survey. Ecological Economics 49(4): 431–455. https://doi.org/10.1016/j.ecolecon.2004.02.011.

Dislich, C., A. C. Keyel, J. Salecker, Y. Kisel, K. M. Meyer, M. Auliya, A. D. Barnes, M. D. Corre, K. Darras, H. Faust, B. Hess, S. Klasen, A. Knohl, H. Kreft, A. Meijide, F. Nurdiansyah, F. Otten, G. Pe’er, S. Steinebach, S. Tarigan, M. H. To ̈lle, T. Tscharntke, and K. Wiegand. 2017. A Review of the Ecosystem Functions in Oil Palm Plantations, using Forests as A Reference System. Biological Review 92: 1539–1569. https://doi.org/10.1111/brv.12295.

Foong, A., P. Pradhan, O. Frör, and J. P. Kropp. 2022. Adjusting Agricultural Emissions for Trade Matters for Climate Change Mitigation. Nature Communications 13(3024): 1-10. https://doi.org/10.1038/s41467-022-30607-x.

Grabs, J. 2023. A Theory of Credible Cross-Temporal Corporate Commitments as Goal-Based Private Sustainability Governance. Business Strategy and the Environment 32(8): 5146-5160. https://doi.org/10.1002/bse.3423.

Grossman, G. M. and E. Helpman. 1991. Trade, Knowledge Spillovers, and Growth. European Economic Review 35(2-3): 517-526. https://doi.org/10.1016/0014-2921(91)90153-A.

Gu, J. 2022. Sharing Economy, Technological Innovation and Carbon Emissions: Evidence from Chinese Cities. Journal of Innovation & Knowledge 7(3): 1002282. https://doi.org/10.1016/j.jik.2022.100228.

Hassan, M. N. A., P. Jaramillo, and W. M. Griffin. 2011. Life Cycle GHG Emissions from Malaysian Oil Palm Bioenergy Development: The Impact on Transportation Sector's Energy Security. Energy Policy 39(5): 2615–2625. https://doi.org/10.1016/j.enpol.2011.02.030.

Heilmayr, R., K. M. Carlson, and J. J. Benedict. 2020. Deforestation Spillovers from Oil Palm Sustainability Certification. Environmental Research Letters 15(7): 1–15. https://doi.org/10.1088/1748-9326/ab7f0c.

Iskandar, A. 2019. Economic Growth and CO2 Emissions in Indonesia: Investigating the Environmental Kuznets Curve Hypothesis Existence. Jurnal Badan Pendidikan dan Pelatihan Keuangan (Jurnal BPKK) 12(1): 42-52. https://doi.org/10.48108/jurnalbppk.v12i1.369.

Jopke, P. and G. C. Schoneveld. 2018. Corporate Commitments to Zero Deforestation: An Evaluation of Externality Problems and Implementation Gaps. Occasional Paper 181. Center for International Forestry Research. Bogor.

Junior, R. M., P. J. Best, and J. Cotter. 2014. Sustainability Reporting and Assurance: A Historical Analysis on a Worldwide Phenomenon. Journal of Business Ethics 120(1): 1–11. https://doi.org/10.1007/s10551-013-1637-y.

Kamaruddin, H., H. A. Wahab, and H. M. Anuar. 2018. Legal and Non-Legal Agricultural Practices: Toward A Sustainable Future in Malaysia’s Palm Oil Industry. Indonesia Law Review 3: 316-327. https://dx.doi.org/10.15742/ilrev.v8n3.512.

Kemper, K. and M. de M. E. Filho. 2021. Designing Fiscal Instruments for Sustainable Forests. World Bank Group.

Koh, L. P., J. M., S. C. Liew, and J. Ghazoul. 2011. Remotely Sensed Evidence of Tropical Peatland Conversion to Oil Palm. Biological Sciences 108(12): 5127-5132. https://doi.org/10.1073/pnas.1018776108.

Lee, H. and J. Lee. 2022. Industry Competition, Corporate Governance, and Voluntary Disclosure of Greenhouse Gas Emissions Information: Evidence from South Korea. International Journal of Environmental Research and Public Health 19(23): 1–15. https://doi.org/10.3390/ijerph192316272.

Leimona, B., S. Amaruzaman, B. Arifin, F. Yasmin, F. Hasan, H. Agusta, P. Sprang, S. Jaffee, and J. Frias. 2015. Indonesia’s Green Agriculture’s Strategies and Policies: Closing the Gap between Aspirations and Application. The World Agroforestry Center. Kenya.

Lenzen, M., Y. Sun, F. Faturay, Y. Ting, A. Geschke, and A. Malik. 2018. The Carbon Footprint of Global Tourism. Nature Climate Change 8: 522–528. https://doi.org/10.1038/s41558-018-0141-x.

Li, J., G. Huang, Y. Li, L. Liu, and B. Zheng. 2022. Decoupling Degrees of China's Economic Growth from Three-Perspective Carbon Emissions. Journal of Cleaner Production 368(133209). https://doi.org/10.1016/j.jclepro.2022.133209.

Liu, S., J. Jia, H. Huang, D. Chen, Y. Zhong, and Y. Zhou. 2023. China's CO2 Emissions: A Thorough Analysis of Spatiotemporal Characteristics and Sustainable Policy from the Agricultural Land-Use Perspective during 1995–2020. Land 12(6): 1–20. https://doi.org/10.3390/land12061220.

Ma, J., T. Fujino, Y. Lim, W. Niyommaneerat, and O. Chavalparit. 2021. Greenhouse Gas Emission from Palm Oil Industry in Thailand and its Countermeasures. International Journal of Earth & Environmental Sciences 6(184): 1-10. https://doi.org/10.15344/2456-351X/2021/184.

Mardiharini, M., D. H. Azahari, R. M. Chaidirsyah, and K. Obaideen. 2021. The Palm Oil Industry is Moving towards the Achievement of Sustainable Development Goals (SDGs). IOP Conf. Series: Earth and Environmental Science 892: 012068. DOI 10.1088/1755-1315/892/1/012068.

Mitić, P., A. Fedajev, M. Radulescu, and A. Rehman. 2023. The Relationship Between CO2 Emissions, Economic Growth, Available Energy, and Employment in SEE Countries. Environmental Science and Pollution Research 30: 16140–16155. https://doi.org/10.1007/s11356-022-23356-3.

Mohammadi, A. and A. A. Burhan. 2020. Impact of Population and Economic Growth on CO2 Emission (Case of Afghanistan). Journal of Emerging Technologies and Innovative Research 7(10): 368-378.

Noë, J. L., K. H. Erb, S. Matej, A. Magerl, M. Bhan, and S. Gingrich. 2021. Altered Growth Conditions More Than Reforestation Counteracted Forest Biomass Carbon Emissions 1990–2020. Nature Communications 12(1), 6057. https://doi.org/10.1038/s41467-021-26398-2.

OECD. 2015. Monitoring the Transition to A Low-Carbon Economy: A Strategic Approach to Local Development. OECD.

OECD. 2021. Financial Markets and Climate Transition: Opportunities, Challenges, and Policy Implication. OECD. Paris.

Othman, J. 2003. Linking Agricultural Trade, Land Demand, and Environmental Externalities: Case of Oil Palm in South East Asia. ASEAN Economic Bulletin 20(3): 244–255. https://muse.jhu.edu/article/387670.

Putri, E. I. K., A. H. Dharmawan, O. Hospes, B. E. Yulian, R. Amalia, D. I. Mardiyaningsih, R. A. Kinseng, F. Tonny, E. P. Pramudya, F. Rahmadian, and D. Y. Suradiredja. 2022. The Oil Palm Governance: Challenges of Sustainability Policy in Indonesia. Sustainability 14(3): 1-20. https://doi.org/10.3390/su14031820.

Qi, Y. 2012. Annual review of Law-Carbpn Development in China (2011-2012). Social Sciences Academic Press. China.

Radmehr, R., S. R. Henneberry, and S. Shayanmehr. 2021. Renewable Energy Consumption, CO2 Emissions, and Economic Growth Nexus: A Simultaneity Spatial Modeling Analysis of E.U. Countries. Structural Change and Economic Dynamics 57: 13-27. https://doi.org/10.1016/j.strueco.2021.01.006.

Raihan, A., R. A. Begum, M. Nizam, M. Said, and J. J. Pereira. 2022. Dynamic Impacts of Energy Use, Agricultural Land Expansion, and Deforestation on CO2 Emissions in Malaysia. Environmental and Ecological Statistics 29(3): 477-507. https://doi.org/10.1007/s10651-022-00532-9.

Raitzer, D. A., F. Bosello, M. Tavoni, C. Orecchia, G. Marangoni, and J. N. G. Samson. 2015. Southeast Asia and the Economics of Global Climate Stabilization. Asian Development Bank. Manila.

Ribeiro, H. V., D. Rybski, and J. P. Kropp. 2019. Effects of Changing Population or Density on Urban Carbon Dioxide Emissions. Nature Communications 10(3204): 1-9. https://doi.org/10.1038/s41467-019-11184-y.

RSPO. 2018. Principle and Criteria for the Production of Sustainable Palm Oil. Roundtable on Sustainable Palm Oil. Kuala Lumpur.

Santoso, A. D. 2017. Jejak Karbon Individu Pegawai di Instansi Pemerintah: Studi Kasus Pegawai Pemerintahan di Kawasan Puspiptek, Tangerang Selatan. Jurnal Teknologi Lingkungan 18(2): 233-240. https://doi.org/10.29122/jtl.v18i2.2242

Shahputra, M. A. and Z. Zen. 2008. Positive and Negative Impacts of Oil Palm Expansion in Indonesia and the Prospect to Achieve Sustainable Palm Oil. IOP Conf. Series: Earth and Environmental Science 122: 012008. DOI 10.1088/1755-1315/122/1/012008.

Shen, T., R. Hu, P. Hu, and Z. Tao. 2023. Decoupling between Economic Growth and Carbon Emissions: Based on Four Major Regions in China. International Journal of Environmental Research and Public Health 20(1496): 1–18. https://doi.org/10.3390/ijerph20021496.

Shunfa, H., E. C. Hui, and L. Yaoyu. 2022. Relationship Between Urban Spatial Structure and Carbon Emissions: A Literature Review. Ecological Indicators 144(109456). https://doi.org/10.1016/j.ecolind.2022.109456.

Suryahadi, A., D. Suryadarma, and S. Sumarto. 2006. Economic Growth and Poverty Reduction in Indonesia: The Effect of Location and Sectoral Components of Growth. SMERU Working Paper.

United Nations. 2023. Technology and Innovation Report 2023: Opening Green Windows-Technological Opportunities for a Low-Carbon World. United Nations. New York.

Vijay, V., S. L. Pimm, C. N. Jenkins, and S. J. Smith. 2016. The Impacts of Oil Palm on Recent Deforestation and Biodiversity Loss. PLoS ONE 11(7): e0159668. https://doi.org/10.1371/journal.pone.0159668.

Zhen, N. and C. Freire. 2023. The Interlinks Between the Economic Complexity and Carbon Footprint. United Nations Conference on Trade and Development.