The Impact of Indonesian Agricultural Policies on Indigenous Populations, Natural Resources and the Economy: The Limits of Democratic Self-Determination Under Capitalist Regimes

The title of this paper highlights a number of interconnected themes: how Indonesian agricultural policy has affected its indige nous populations, its natural environment, and the structure of its economy; the relationship between these effects; and, more gener ally, the structure of capitalist markets and democratic institu tions. This set of topics is complex; it is useful, therefore, to analyze them not with an elaborate theoretical paradigm, but through a concrete example. Specifically, this paper will examine how palm oil production has evolved in Indonesia over the last fifty years. Palm oil is an edible and versatile plant oil produced from the pulp of the fruit of oil palm trees. It is a common ingredi ent in many detergents, processed foods and, increasingly, biodiesel fuels.1 Historically, palm oil production in Indonesia has involved massive deforestation and air pollution, the expropria