Instead of gaining investments and improving its economy, Indonesia has planted a disaster through oil plam plantations. The fact is that the policy to get rid of obstacles on export and investment, which is encouraged by the IMF, has made Indonesian forests fall into a deeper crisis. The crisis resulting from economic and political crisis is due to the mismanagement during the last tree decades.
Large-scale oil palm plantation have been considered as a panacea for Indonesian economy after the prolonged crisis. Supported by the IMF and Word bank, the government planned to establish large-scale palm oil plantation throughout Indonesia. The target was to change 9.6 millions hectares of land into oil palm plantation by the end of 1996. What the government, businessmen, and interbational financial institutions thought this would create devisa, working opportunities they would create, and increase farmers’ welfare. However the development of large-scale oil palm plantations has resulted in the opposite outcome. This report will show that large businessmen involved in oil palm plantation development are also responsible for the economic crisis. Oil palm plantations are not panacea but a disaster for Indonesia and Indonesia’s forest.