By Masri Sareb PutraBorneo tourism shaped by palm oil, reshaping access and ecotourism. Author’s documentation.
Palm oil in Borneo (Kalimantan) fuels Indonesia’s economy while shaping the Borneo Tour & Travel sector. Discover how sustainable plantations create opportunities for eco-tourism, infrastructure growth, and environmental challenges across Central, West, and East Kalimantan.
Borneo Tour & Travel is increasingly shaped by the dynamics of the palm oil industry in Kalimantan, where the growth of plantations influences everything from infrastructure development to nature-based tourism across the region.
The impact of palm oil on Borneo tourism is complex. Opening new opportunities for eco tourism while also reshaping how travelers access remote forests, rivers, and cultural landscapes.
At the same time, the push toward sustainable palm oil is creating pathways for more responsible travel experiences. Yet tensions remain, especially in the ongoing balance between orangutan tourism and palm oil expansion in Borneo, where economic growth and environmental preservation continue to intersect.
Palm Oil in Borneo: The Economic Lifeline Shaping Borneo Tour & Travel
Palm oil isn’t just another crop; it’s an economic lifeline that flows from the land of Kalimantan to factories, from fresh fruit bunches to everyday products, and from remote villages to the travel routes explored through Borneo Tour & Travel.
Every drop helps generate tens of billions of dollars in foreign exchange, supports millions of jobs, and indirectly funds infrastructure that makes it easier for travelers to reach tropical rainforests, rivers, and orangutan habitats across Borneo.
In 2024, Indonesia’s palm oil exports contributed around $28.5 billion USD. By 2025, export volumes rose to approximately 32–36 million tons, with revenues remaining strong at about $24–28 billion (based on BPS and Ministry of Agriculture data). The industry employs roughly 16.5 million people, including both direct and indirect workers.
Palm oil shows up in everyday life more than most people realize—cooking oil, margarine, soap, cosmetics, even chocolate. It’s part of daily routines, yet rarely considered as a force shaping the face of tourism in Borneo.
Indonesia remains the world’s largest palm oil producer, with plantation areas spanning roughly 16.01–16.83 million hectares (depending on methodology between BPS and the Ministry of Agriculture). While a land expansion moratorium has been in place since 2018, productivity continues to rise through technology, replanting programs, and intensification. Crude palm oil (CPO) production reached about 45–46.55 million tons in 2024 and is expected to keep growing in 2025.
The Shift Toward Borneo and What It Means for Tourism
While Sumatra once dominated the industry, Borneo (Indonesian Kalimantan) is now emerging as a major powerhouse. Five key provinces shape the direction of Indonesia’s palm oil sector:
- Riau remains the leader with 3.41 million hectares, contributing over 9 million tons of CPO annually.
- Central Kalimantan has grown rapidly to about 2.16 million hectares, with strong production and expanding infrastructure.
- West Kalimantan stands out for its strong smallholder presence, with 40–50% managed by local farmers, including Dayak communities.
- East Kalimantan is a fast-rising player, supported by development tied to Indonesia’s new capital (IKN).
- North Sumatra maintains high productivity despite smaller land area.
Borneo now dominates positions two through four nationally. With land in Sumatra increasingly limited, Kalimantan offers wider availability, competitive costs, and strong regional support.
Nationally, plantation ownership is split between large private companies (around 51–53%), smallholders (40–41%), and state-owned estates. Government-backed replanting programs are accelerating smallholder productivity through better seedlings and technical support.
Palm Oil and Borneo Tourism: Opportunity vs. Trade-Offs
Positive Impacts on Tourism:
Infrastructure Growth
Roads, ports, and transport networks built for palm oil logistics also open access to remote destinations like Tanjung Puting National Park, Danau Sentarum, and inland river systems.
Local Economic Boost
Jobs and rising incomes support local tourism services—homestays, guides, food businesses, and cultural products rooted in Dayak traditions. In regions like West and Central Kalimantan, smallholder plantations also create opportunities for agro-tourism and educational travel.
Conservation Funding Potential
Palm oil revenues contribute to national programs like biodiesel (B40–B50) and environmental targets such as FOLU Net Sink 2030, indirectly supporting conservation and eco-tourism initiatives.
Challenges and Risks:
- Deforestation and habitat loss, especially affecting orangutans and other wildlife
- Land conflicts involving Indigenous Dayak communities
- Seasonal flooding and peatland emissions
- International criticism, particularly from Europe, despite palm oil’s higher productivity compared to other vegetable oils
That said, there’s a clear shift toward sustainability. Certification systems like ISPO (mandatory) and RSPO (international) are expanding, and more producers are adopting responsible practices intensifying existing land use rather than clearing new forests and integrating conservation efforts like wildlife corridors.
A Blessing or a Burden for Borneo Tourism?
From Riau to Central, West, and East Kalimantan, palm oil remains a cornerstone of economic life, supporting millions of families and generating national revenue. For Borneo Tour & Travel, it’s a double-edged sword: enabling infrastructure and economic growth while also posing risks to the region’s natural authenticity.
Sustainability is no longer optional; it’s essential. Policies like land moratoriums, replanting, certification, and downstream processing (turning CPO into higher-value products) are key to balancing growth with environmental protection.
When managed responsibly, palm oil can become a powerful example of how economic development and environmental stewardship can coexist.
So the next time you use cooking oil or soap, remember: palm oil plantations in Borneo don’t just sustain Indonesia’s global leadership. They also help shape the future of eco-tourism in one of the world’s most biodiverse regions.
Protecting that balance means ensuring future generations can still experience Borneo’s rainforests, orangutans, and rich Dayak culture through responsible travel.
