Information on the problem
The problem
How should Indonesia develop its palm oil industry?

Some people in Indonesia think the development of palm oil plantations is vital for the
Indonesian economy and development.

Others think that palm oil plantations destroy valuable tropical rainforests and peatlands, and are not a sustainable way to produce resources.

The government of Indonesia must make a decision about the future development of
palm oil plantations.
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 plantations by 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 plantations are small, 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.






2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
30
25
20
15
10
5
0
2000
Millions of tonnes of palm
oil
Palm oil production in Indonesia 2000-2012
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.
Africa
South America
Papua New Guinea
Malaysia
0
100000
200000 300000 400000
Palm oil imports (tonnes)
500000
600000
Figure 3e – Sources of UK palm oil imports in 2010
Indonesia
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
(%)
Land area
Plant species
Mammal species
Reptiles & amphibians
Birds
Fish
Indonesia
Rest of the world
1.3
10
12
16
17
25
98.7
90
88
84
83
75
Figure 2a – Biodiversity in Indonesia compared to the rest of the world
Tropical rainforest




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.
Peat-land swamp forest




In lowland areas the forest grows in waterlogged 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
1100000
1000000
900000
800000
700000
600000
500000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Forest cover (square kilometres)
1200000
Year
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
WWF is an environmental
pressure group and NGO
View
“Large areas of tropical forests have been cleared to make
room for vast palm oil 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.
Cargill in a TNC based in the USA
that grows, processes and sells
palm oil.
“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.”
“Millions of people around the world depend 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)
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
(b)
Study Figure 1b.
Explain how the data in Figure 1b support the view that Indonesia is a developing
country.
(3)
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
(c)
Suggest two reasons why biodiesel made from palm oil might be considered better for
the environment than diesel made from crude oil.
(2)
1…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………….
2…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………….
(d)
Suggest two reasons why there is growing global demand for palm oil.
(2)
1…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………….
2…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………….
(e)
Explain the growing importance of the palm oil industry to Indonesia’s people and its
economy.
(6)
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
(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)
1…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………….
2…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………….
(b)
Outline the evidence that suggests Indonesia’s biodiversity is globally important. (3)
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
(c)
Explain why the deforestation of Indonesia’s peat-land forests is an issue of global
concern.
(3)
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
(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)
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
(b)
Study Figure 3c.
Describe how the distribution of forest cover changed between 1980 and 2010 in the
area of Sumatra shown.
(4)
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
(c)
Suggest how deforestation on Sumatra could affect the hydrological cycle of the area.
(3)
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
(Total for Question 3 = 10 marks)
4
Study Figure 4.
Examine why different organisations have contrasting views about the issue of palm oil
development in Indonesia.
(6)
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
(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.
Option 1:
Continue to expand palm oil production in Indonesia.
Option 2: Prevent any further expansion of palm oil plantations by monitoring and
policing remaining forests, with large fines for illegal deforestation.
Option 3: Use a tax on palm oil production and exports, to fund the replanting of forests.
Select the option that you think would be best for the Indonesian people and the 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 2 to support
your answer.
Chosen option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10)
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………….
(Total for spelling, punctuation and grammar = 3 marks)
(Total for Question 5 = 10 marks)
TOTAL FOR PAPER = 53 MARKS