Over nearly two decades, Indonesia's remaining forest cover has shrunk by 3.2 million hectares, down from 5.7 million hectares in 2001. This lost forest cover automatically increased the area of palm oil plantations in forest areas to 2.5 million hectares by 2018.
The greatest loss of forest cover in palm oil plantation areas over the past 17 years occurred in 2012. At that time, 266,000 hectares of forest cover were lost, with Kalimantan contributing the largest share of the loss. The loss of forest cover has tended to decrease in the last five years. In 2018, the loss of forest cover amounted to 66,800 hectares.
According to a study on the Palm Oil Commodity Management System from the KPK (Corruption Eradication Commission), several companies have profited from the clearing of forests for palm oil plantations. However, the potential tax revenue has never been calculated and paid to the state. This is detrimental to Indonesia financially, environmentally, and socially in the future.
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