Section 1: Indonesia and Palm Oil an Introduction

Information on the problem

Section 1: Indonesia and palm oil – an introduction

Figure 1a – Indonesia is located in South East Asia.

Australia is to the south-east with Malaysia, Thailand and China to the north. Most people live on the islands of Sumatra and Java (where the capital city, Jakarta, is located).

Total population / 251 million / Percentage of population aged 0-14 years / 27%
Income per person (US $) / 3,800 / Percentage of people living in urban areas / 51%
Human Development Index (HDI) / 0.63 / Life expectancy / 71 years
Percentage of people working in secondary industry / 22% / Percentage of people working in farming / 39%

Figure 1b – Key facts about Indonesia in 2013

Figure 1c – What is palm oil and how is it used?

In 2011, oil palm plantations covered 7.8 million hectares in Indonesia.

By 2020, Indonesia plans to double production of palm oil to 40 million tonnes per year and increase palm oil plantationsby 4 million hectares.

High demand for palm oil from emerging economies in Asia, such as India and China, is driving an increase in production.
About 75% of palm oil plantations estates are located on Sumatra and Kalimantan.
About 50% of plantationsaresmall, family run farms.
Over 2 million people are employed in the palm oil industry in Indonesia.
In 2010, palm oil made up 7% of Indonesia’s exports, valued a $12 billion.

Figure 1d – Indonesia’s palm oil industry.

Palm oil is not only used for biodiesel. It is found in many food products, and even in shampoo and lipstick. It can only be grown in tropical areas like Indonesia.

Figure 3e – Sources of UK palm oil imports in 2010

Section 2 – Indonesia’s biodiversity

Indonesia has some of the world’s highest levels of biodiversity.
Originally, tropical forests covered about 85% of Indonesia although this now stands at about 50%.
It is home to the 3rd largest tropical rainforest in the world (after the Brazilian Amazon and the Congo Basin in Africa).
Between 2004 and 2008, the Sumatran orangutan population fell by 14% to 6,600 individuals; the Sumatran tiger and Sumatran rhinoceros are both critically endangered.

All figures are percentages (%) / Indonesia / Rest of the world
Land area / 1.3 / 98.7
Plant species / 10 / 90
Mammal species / 12 / 88
Reptiles & amphibians / 16 / 84
Birds / 17 / 83
Fish / 25 / 75

Figure 2a – Biodiversity in Indonesia compared to the rest of the world

Tropical rainforest
/ Peat-land swamp forest

Much of the tropical rainforest in Indonesia is found in mountainous areas.
Different species are found at different altitudes.
This includes the endangered Orangutan found on Sumatra and Borneo.
Deforestation threatens even isolated areas of tropical forest.

In lowland areas the forest grows in water-logged swamps.
Beneath the forest is a layer of peat (water-logged soil)
Peat is a huge carbon store.
When the peat-land forest is cleared the peat begins to decompose, releasing its stored carbon.

Figure 2b – tropical rainforests and peat-land forests

Section 3 – Deforestation

Figure 3a – Satellite image of Indonesian forest fires 2013, caused by burning forests

for new farmland. Smoke spread across much of south-east Asia

Figure 3b –Forest cover in Indonesia 1990-2011 in square kilometres

Figure 3c –An area of Sumatra, in Indonesia, in 1980 and 2010 showing how forest area has changed.

Figure 3d – Deforested hillsides on Sumatra. Deforestation exposes soil to the very heavy rains experienced in Indonesia.

Section 4 – Views on palm oil development

Organisation / View
WWF is an environmental pressure group and NGO
/ “Large areas of tropical forests have been cleared to make room for vast palmoil plantations – destroying habitats for many endangered species, including rhinos, elephants and tigers.
In some cases, the expansion of plantations has lead to the eviction of forest-dwelling people.”
World Growth is a pressure group that promotes globalization.
/ “Palm oil provides developing nations and the poor with a path out of poverty.Expanding sustainable agriculture such as palm oil Plantations provides plantation owners and their workers with a means to improve their standard of living.”
Cargill in a TNC based in the USA that grows, processes and sells palm oil.
/

“Millions of people around the worlddepend on palm oil.We believe that palm should be produced sustainably. We have made a commitment that the palm oil products we supply to our customers will be certified as coming from sustainable forests by 2020.”

Figure 4 – Three contrasting views about palm oil development in Indonesia.

Answer ALL questions.

1 Study Section 1 of the Resource Booklet and answer the following questions.

(a) Study Figure 1a.

Describe the geography of Indonesia. (3)

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(b) Study Figure 1b.

Explain how the data in Figure 1b support the view that Indonesia is a developing country. (3)

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(c) Suggest two reasons why biodiesel made from palm oil might be considered better for the environment than diesel made from crude oil. (2)

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(d) Suggest two reasons why there is growing global demand for palm oil. (2)

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(e) Explain the growing importance of the palm oil industry to Indonesia’s people and its economy. (6)

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(Total for Question 1 = 16 marks)

2 Study Section 2 of the Resource Booklet and answer the following questions.

(a) State two reasons why biodiversity levels in Indonesia are so high.(2)

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(b)Outline the evidence that suggests Indonesia’s biodiversity is globally important.(3)

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(c)Explain why the deforestation of Indonesia’s peat-land forests is an issue of global concern. (3)

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(Total for Question 2 = 8 marks)

3 Study Section 3 of the Resource Booklet and answer the following questions.

(a) Study Figure 3b.

Describe the trend in forest cover in Indonesia between 1990 and 2011.(3)

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(b) Study Figure 3c.

Describe how the distribution of forest cover changed between 1980 and 2010 in the area of Sumatra shown. (4)

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(3)

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(Total for Question 3 = 10 marks)

4Study Figure 4.

Examine why different organisations have contrasting views about the issue of palm oil development in Indonesia. (6)

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(Total for Question 4 = 6 marks)

Spelling, punctuation and grammar will be assessed in your answer to this question.

5 Study the three options for Indonesia’s government shown below.

Select the option that you think would be best for the Indonesian people andthe environment.

Examine the advantages and disadvantages of this option for the Indonesian people and the environment.

Use information from the Resource Booklet and your knowledge from Units 1 and 2to support your answer.

Chosen option ...... (10)

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(Total for spelling, punctuation and grammar = 3 marks)

(Total for Question 5 = 10 marks)

TOTAL FOR PAPER = 53 MARKS