Peatlands and Palm Oil in Indonesia: New Review Highlights Water Governance as Key to Sustainability
A 2026 study by IPOSS Jakarta researcher Loso Judijanto finds that the future of oil palm on Indonesia’s peatlands depends less on labels like “sustainable” or “unsustainable” and more on how water is managed. Published in the International Journal of Global Sustainable Research, the review synthesizes recent scientific evidence to show that groundwater levels are the central factor linking environmental risks, climate impacts, and long-term land viability.
The findings matter because Indonesia is both a global leader in palm oil production and home to vast tropical peatlands—ecosystems that store massive amounts of carbon. When these peatlands are drained for agriculture, they can release greenhouse gases, increase fire risk, and gradually sink, creating long-term environmental and economic challenges.
Why Peatlands and Palm Oil Are at the Center of Global Debate
Oil palm cultivation has expanded into peatlands partly due to limited availability of suitable mineral soils and rising demand for palm oil in global markets. While the crop plays a major role in national income and rural livelihoods, it has also drawn criticism for contributing to deforestation, fires, and carbon emissions.
The debate remains deeply divided. Some international narratives highlight severe environmental damage, while others argue that impacts are often overstated or depend heavily on how plantations are managed. This new review helps clarify the issue by focusing on one critical variable: water.
How the Study Was Conducted
The research uses a qualitative literature review approach, analyzing peer-reviewed studies published after 2020 alongside foundational earlier work. Rather than collecting new field data, the study synthesizes existing evidence across multiple disciplines, including environmental science, policy studies, and governance research.
The analysis focuses on seven major themes, including greenhouse gas emissions, fire risk, land subsidence, and hydrological management. It compares findings across different contexts, timeframes, and measurement methods to explain why scientific conclusions often differ.
Key Findings: Water Levels Shape Everything
The review identifies groundwater level—known as the water table—as the single most important factor influencing peatland sustainability.
Major findings include:
- Drainage drives environmental risk Lowering the water table dries peat soils, accelerating decomposition and releasing carbon dioxide into the atmosphere.
- Fire risk increases with dryness Drier peat becomes highly flammable, contributing to large-scale fires that affect air quality and public health.
- Land subsidence is a long-term threat Drained peatlands gradually sink, increasing flood risk and threatening the long-term viability of plantations.
- Emissions are highest during early conversionThe process of clearing and draining peat forests produces the largest climate impact, especially when multiple gases such as CO₂ and N₂O are considered.
- Rewetting can reduce damage Techniques like canal blocking can raise water levels, reduce emissions, and slow land degradation—though results vary by location.
The study emphasizes that these outcomes are interconnected. As Judijanto explains, groundwater levels act as a “hinge” linking local environmental conditions to global climate impacts.
Not All Peatland Development Is Equal
One of the most important insights is that outcomes depend heavily on baseline conditions.
- Converting intact peat swamp forests leads to severe environmental impacts.
- Developing already degraded peatlands results in more variable outcomes, depending on management practices.
This distinction helps explain why scientific studies sometimes reach different conclusions—and why policy debates remain contested.
Real-World Implications: From Policy to Practice
The findings suggest that improving sustainability in existing oil palm plantations is more realistic than eliminating peatland use altogether.
For policymakers:
- Prioritize protecting remaining peat forests from new conversion.
- Coordinate water management at the landscape level, not just individual plantations.
- Treat restoration as a long-term risk management strategy.
For companies:
- Monitor and maintain water levels as a core operational practice.
- Expand emissions accounting to include drainage systems, not just soil surfaces.
- Report sustainability using multiple indicators, including fire risk and land stability.
For smallholders:
- Combine rewetting efforts with livelihood support to ensure economic viability.
- Adopt improved water management practices tailored to peatland conditions.
Social and Economic Trade-offs Cannot Be Ignored
The study highlights that technical solutions alone are not enough. Rewetting peatlands can affect crop yields and farmer incomes, especially for smallholders.
Research from Sumatra shows that community acceptance depends on whether restoration efforts are paired with viable economic alternatives. Without this balance, even well-designed environmental interventions may fail.
Judijanto notes that peatland management is not just an environmental issue but also a governance and equity challenge, requiring coordination among governments, companies, and local communities.
A Shift in Perspective: From Labels to Risk Management
Instead of asking whether oil palm on peat is “sustainable,” the study proposes a more practical framework: managing risks across multiple dimensions.
This includes balancing:
- Climate impacts (greenhouse gas emissions)
- Fire prevention
- Land stability
- Economic livelihoods
The review concludes that the most effective path forward is a “better-than-status-quo” approach—improving existing plantations through better water governance while avoiding new peatland conversion.
Author Profile
Loso Judijanto is a researcher affiliated with IPOSS Jakarta. His work focuses on sustainability governance, environmental policy, and the intersection of natural resource management and socioeconomic development.
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