The Dark Side of Palm Oil Licensing: Environmental Degradation and Social Inequality in Sumatra

Abstract

The opening of oil palm land in Sumatra represents a phenomenon with significant economic implications but also generates various social and environmental issues; although it is normatively regulated through various regulations such as the Basic Agrarian Law, the Plantation Law, the Environmental Protection and Management Law, as well as licensing policies and environmental instruments like Environmental Impact Assessment (EIA), in practice there are still various problems in implementation and supervision. This study aims to analyze the regulatory framework for oil palm land opening permits, examine the applicable licensing procedures, and identify the social, economic, and environmental impacts on communities in Sumatra, using a qualitative descriptive method and a literature review. Data were obtained from laws and regulations, government policies, academic journal articles, scholarly books, and relevant research reports, and were then analyzed qualitatively by examining, comparing, and synthesizing these sources to identify patterns, relationships, and key issues. The findings indicate that although the regulatory framework for oil palm land opening permits in Indonesia is relatively comprehensive, its effectiveness remains weak due to policy overlap, weak supervision, and inconsistent law enforcement, and the impacts that emerge are multidimensional, including agrarian conflicts, changes in livelihoods, environmental degradation, and increased disaster risks such as flooding; therefore, there is a need to strengthen regulatory implementation, enhance effective supervision, and integrate policies that are more oriented toward environmental sustainability and community protection.