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Palm oil is one of the most important vegetable oils in the world and plays a major role not only in food security, but also as the most important source for bioenergy (bio-fuel). Oil palms accounted for only six percent of global land use for cultivation but produced 33 per cent of global oils and fats output in 2014-15 (New York Times, 08/05/2017). This makes palm oil the cheapest, most efficient, and most demanded vegetable oil in the world. As the world’s biggest exporter of palm oil, Indonesia plans to increase its production to 42 million tonnes by 2020 to maintain its global lead through the improvement in productivity of oil palm plantations.PALM OIL AND POVERTY ALLEVIATION The development of the palm oil industry offers a glimmer of hope for the Indonesian people to improve their livelihoods, health and education. This is true, since it provides more than five INDONESIAN PALM OIL ASSOCIATIONMOVING FORWARD SUSTAINABLE PALM OIL“AS THE WORLD’S BIGGEST EXPORTER OF PALM OIL, INDONESIA PLANS TO INCREASE ITS PRODUCTION TO 42 MILLION TONNES BY 2020 ”Pictured: Sustainable production of palm oil is a strategic priority for Indonesiamillion jobs, with strong multiplier effects in terms of rural development and poverty alleviation. The important role of palm oil production in supporting the livelihoods of local people can be confirmed by about 7,9 million householders recorded as working in the palm oil industry (Ministry of Agriculture 2015). The future of their children also strongly depends on palm oil. The average income of an oil palm farmer (10,58 million rupiah/capita/year) is found to be much higher compared to that of a city worker (4,37 million rupiah/capita/year) or a rural worker (4,12 million rupiah/capita/year) (PASPI 2014).NO DEFORESTATION AND CONSERVATION OF PEATLAND Deforestation as well as peatland and land fires are the main concerns of oil palm growers. Action to stop planting on high-carbon stock area and peatland – regardless of depth – has been taken by many, and steps to build up sustainable palm oil schemes have become a trend among companies. 068 SUSTAINABLE PALM OIL