BUSINESS
JAKARTA (FORESTHINTS.NEWS) - A satellite imagery-based monitoring report recently released (Aug 20) by Chain Reaction Research (CRR) shows a significant decline, not an increase, in deforestation across known palm oil concessions in Indonesia during the global COVID-19 outbreak period from January to June 2020 compared to the same period last year.
CRR and its partner AidEnvironment detected a considerably low level of deforestation amounting to 11,474 hectares during the year’s first semester, nearly 4 times lower than the corresponding figure from last year.
Given the downward trend in deforestation over the first six months of the year, CRR predicts, among other things, that the overall level of deforestation in known palm oil concessions in 2020 will be lower than that from last year.
“Several reasons are likely behind this year's reduction in deforestation. The most obvious is COVID-19 and the travel restrictions that have been implemented throughout the globe, including in Indonesia and Malaysia,” CRR explained.
The following satellite images from the CRR report depict the situation before (first image) and after (second image) the deforestation that took place in the first six months of 2020 in a palm oil concession linked to global palm oil supply chains.
Persistent positive growth
Palm oil plantations have been amongst the best performers this year in terms of contribution to GDP despite the difficult economic situation caused by the Coronavirus pandemic.
The plantation subsector, including and especially palm oil plantations, continued to experience positive growth, year-on-year, quarter-to-quarter and semester-to-semester, as a portion of Indonesian GDP as of the second quarter of 2020, according to the Indonesian Central Bureau of Statistics (BPS).
Increased production from palm oil plantations along with a rise in demand for CPO have been cited by BPS as contributing to the positive growth of the plantation subsector as a portion of GDP growth, per the second quarter of 2020.
Similarly, the forestry subsector also continued to enjoy positive growth in its contribution to Indonesian GDP, year-on-year, quarter-to-quarter and semester-to-semester, as of the second quarter of 2020, as previously reported by FORESTHINTS.NEWS (Aug 7).
Over the course of the COVID-19 pandemic, the Indonesian government has endeavored to provide various incentives and innovations to avoid layoffs as much as possible, including in the palm oil and forestry industries.
The fall in deforestation in Indonesia's known palm oil concessions during the first six months of 2020 has not affected the level of positive growth from the plantation subsector, where palm oil plantations predominate in this subsector, to Indonesian GDP.
The inverse relationship between deforestation and the growth rate of the palm oil industry as part of Indonesian GDP was perfectly exemplified in the first six months of 2020 which saw a sharp drop in deforestation in known plantation concessions, accompanied by a positive growth to GDP.
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BUSINESS
JAKARTA (FORESTHINTS.NEWS) - A satellite imagery-based monitoring report recently released (Aug 20) by Chain Reaction Research (CRR) shows a significant decline, not an increase, in deforestation across known palm oil concessions in Indonesia during the global COVID-19 outbreak period from January to June 2020 compared to the same period last year.
CRR and its partner AidEnvironment detected a considerably low level of deforestation amounting to 11,474 hectares during the year’s first semester, nearly 4 times lower than the corresponding figure from last year.
Given the downward trend in deforestation over the first six months of the year, CRR predicts, among other things, that the overall level of deforestation in known palm oil concessions in 2020 will be lower than that from last year.
“Several reasons are likely behind this year's reduction in deforestation. The most obvious is COVID-19 and the travel restrictions that have been implemented throughout the globe, including in Indonesia and Malaysia,” CRR explained.
The following satellite images from the CRR report depict the situation before (first image) and after (second image) the deforestation that took place in the first six months of 2020 in a palm oil concession linked to global palm oil supply chains.
Persistent positive growth
Palm oil plantations have been amongst the best performers this year in terms of contribution to GDP despite the difficult economic situation caused by the Coronavirus pandemic.
The plantation subsector, including and especially palm oil plantations, continued to experience positive growth, year-on-year, quarter-to-quarter and semester-to-semester, as a portion of Indonesian GDP as of the second quarter of 2020, according to the Indonesian Central Bureau of Statistics (BPS).
Increased production from palm oil plantations along with a rise in demand for CPO have been cited by BPS as contributing to the positive growth of the plantation subsector as a portion of GDP growth, per the second quarter of 2020.
Similarly, the forestry subsector also continued to enjoy positive growth in its contribution to Indonesian GDP, year-on-year, quarter-to-quarter and semester-to-semester, as of the second quarter of 2020, as previously reported by FORESTHINTS.NEWS (Aug 7).
Over the course of the COVID-19 pandemic, the Indonesian government has endeavored to provide various incentives and innovations to avoid layoffs as much as possible, including in the palm oil and forestry industries.
The fall in deforestation in Indonesia's known palm oil concessions during the first six months of 2020 has not affected the level of positive growth from the plantation subsector, where palm oil plantations predominate in this subsector, to Indonesian GDP.
The inverse relationship between deforestation and the growth rate of the palm oil industry as part of Indonesian GDP was perfectly exemplified in the first six months of 2020 which saw a sharp drop in deforestation in known plantation concessions, accompanied by a positive growth to GDP.
RELATED STORIES
