Expanding plantations has most often meant clearing vast swaths of rainforest, and … Indonesia is the world’s largest producer of palm oil.

This page provides an overview of the corporate social responsibility (CSR) risks related to palm oil grown in Sumatra in Indonesia.

Palm Oil in Indonesia. Indonesian Palm Oil Production and Export. The main palm oil producers in the world are Indonesia and Malaysia producing 85% of the world’s … The Malaysian Palm Oil Board (MPOB) is a government agency responsible for the promotion and development of the palm oil sector in the country. Palm oil production is vital for the economy of Malaysia, which is the world's second- largest producer of the commodity after Indonesia. Indonesia was producing 35% of the world’s palm oil in 2012, and India and China are the importers of Indonesia’s palm oil. Indonesia and Malaysia account for around 87% of global palm oil production and the demand for the cheap oil continues to grow. The oil palm is the most efficient oil crop in the world. But all of that growth is coming at a steep price. Few Indonesian industries have shown such robust growth as the domestic palm oil industry during the past 20 years. Many vast monocrop oil palm plantations have displaced tropical forests across Asia, Latin America and West Africa. Around 90% of the world's oil palm trees are grown on a few islands in Malaysia and Indonesia – islands with the most biodiverse tropical forests found on Earth. This growth is reflected by the country's rapidly rising production and export figures as well as by the growing quantity of its palm oil estate area. In 2016, Indonesia produced 34.5 million tonnes of palm oil and exported 25.1 million tonnes. Malaysia and Indonesia, which account for over 80 percent of the world’s palm oil production, have been the primary beneficiaries. Malaysia Currently, Malaysia is second in palm oil production after Indonesia with its overall production accounting for 39% of the global production, while its palm oil exports account for around 44%. Plantations are spreading across Asia, Africa and Latin America, which is threatening the habitats of several endangered species like orangutans, elephants and tigers.Around 90% of the world's oil palm trees are grown on a few islands in Malaysia and Indonesia – islands containing some of the greatest biodiversity on Earth. Global production and demand for palm oil is increasing rapidly.