Indonesia’s oil palm boom began in 2000, which had far reaching consequences for the local population^[12]. Due to the oil palm boom, poverty rates were reduced at local, regional and national level^[12][3]. For example, some farmers converted some of their land into oil palm plantations, and unemployed people were able to find employment through new jobs in the oil palm sector^[6]. The economic growth from oil palm cultivation also improved food security and nutrition as well as rural infrastructure^[3]. Higher incomes, especially of smallholders, can be linked to higher expenditure on health, education, and consumer goods. However, not all population groups benefit from the oil palm boom in the same way or even not at all.

There are also socioeconomic (combination of social and economic factors) downsides, such as disadvantages for some population groups leading to rising inequality and social, societal, and political tensions. For example, there are conflicts regarding (unclear) land property and worker rights (e.g., production contracts between industrial companies and smallholders). Also, less women work in the oil palm sector than, e.g., in rubber cultivation, which may lead to changed gender roles and unequal opportunities^[17]. Some socioeconomic problems are also linked to environmental impacts of oil palm cultivation, such as the use of too many agrochemicals, like fertilizer and herbicides. So, let’s consider the environmental impacts of oil palm cultivation first. We will get more into socioeconomic research in Module II.