Summary
This study evaluates oil palm- and rubber-driven deforestation in Indonesia and Malaysia between 2000 and 2021 through secondary data analysis from a rich data set by collecting and integrating secondary data from multiple sources. The results revealed significant tree cover loss, accounting for 82 and 250% of the primary forest loss in Indonesia and Malaysia, respectively. The area of harvested oil palm increased by 650% in Indonesia and 50% in Malaysia, while palm oil production increased by 566% in Indonesia and 65% in Malaysia over the period. Over the past two decades, Indonesia’s palm oil export volume has risen by 619%, while that of Malaysia has increased by 83%. The study revealed that rubber-harvested areas increased by 54% in Indonesia but decreased by 20% in Malaysia, with rubber production increasing by 108% in Indonesia but decreasing by 49% in Malaysia. Indonesia’s natural rubber export volume also increased by 69%, but Malaysia’s decreased by 33%. The study revealed that the impact of oil palm and rubber on deforestation varies by region and period. However, plantation expansion and associated forest conversion have slowed, which can be associated with the consumer demand for no deforestation of oil palm and rubber products. Smaller companies and smallholder farmers, not bound by zero deforestation commitments, clear forests for plantation expansion and sell their products in the leakage markets. On the other hand, two countries may experience increased deforestation pressures in the future, primarily driven by the expanding use of oil palm for biodiesel production. Finally, the findings of this study suggest the need for region-specific investigations into the interplay between oil palm and rubber cultivation and their impact on deforestation. Such studies should account for geographical and socio-economic factors, aiming to facilitate the effective implementation of zero deforestation commitments.