{"id":4308,"date":"2026-03-25T09:43:54","date_gmt":"2026-03-25T09:43:54","guid":{"rendered":"https:\/\/globalnewstoday.uk\/index.php\/2026\/03\/25\/the-limits-of-a-land-hungry-economy-impakter\/"},"modified":"2026-03-25T09:43:54","modified_gmt":"2026-03-25T09:43:54","slug":"the-limits-of-a-land-hungry-economy-impakter","status":"publish","type":"post","link":"https:\/\/globalnewstoday.uk\/index.php\/2026\/03\/25\/the-limits-of-a-land-hungry-economy-impakter\/","title":{"rendered":"The Limits of a Land-Hungry Economy – Impakter"},"content":{"rendered":"

The deadly floods and landslides that swept across Sumatra in late 2025 have become a stark reminder of\u00a0how fragile<\/a>\u00a0Indonesia\u2019s ecological foundations have become. Triggered by Cyclone Senyar, the disaster killed hundreds, displaced more than a million people, and devastated communities across West Sumatra, North Sumatra, and Aceh.
Environmental groups and government officials now acknowledge that the scale of destruction was\u00a0not caused by extreme weather alone<\/a>. Years of deforestation, peat drainage, mining, and watershed degradation amplified the cyclone\u2019s impact, turning a rare meteorological event into a catastrophe.
Investigations also revealed that even legally permitted logging contributed to the vulnerability of the region, as oversight gaps allowed forest clearing to continue with\u00a0minimal accountability<\/a>.
These events are not isolated. They are symptoms of a deeper structural problem: Indonesia\u2019s economic model remains heavily dependent on land conversion. For decades, growth has been driven by expanding plantations, mining concessions, industrial estates, and infrastructure corridors.
This land\u2011hungry model has delivered short\u2011term economic gains, but it has also eroded the natural systems that protect communities from disaster.
The tension between ecological fragility and economic ambition is becoming increasingly visible. In 2024, the government announced its target of achieving 6\u20138%<\/a> annual growth during the 2025\u20132029 period, with the explicit aim of propelling Indonesia out of the\u00a0middle\u2011income trap<\/a>.
The logic is understandable: Indonesia wants to reach high\u2011income status before its demographic bonus peaks around 2040.
But the recent disasters in Sumatra show that the current path \u2014 one that relies on continuous land expansion \u2014 is becoming economically and ecologically untenable.
Indonesia\u2019s growth strategy\u00a0still leans heavily<\/a> on land\u2011based sectors. Plantation expansion, mining, industrial estates, and infrastructure megaprojects remain central pillars of development planning. These sectors require vast tracts of land, and their expansion often comes at the expense of forests, peatlands, and agricultural areas.
Land availability is becoming increasingly constrained by population growth, rapid urbanisation, and rising food demand. Spatial competition is intensifying, land acquisition costs are rising, and conflicts over land use are becoming more frequent. Indonesia may be geographically vast, but its usable land is finite \u2014 and the pressures on it are mounting.
The Food and Agriculture Organization\u00a0has warned<\/a>\u00a0that Indonesia faces long\u2011term food security risks if agricultural land continues to shrink.
Meanwhile, Statistics Indonesia Body data shows that rice field area\u00a0has declined<\/a>\u00a0from more than 8 million hectares in 2015\u20132017 to just 7.38 million hectares in 2024.
Much of this land has been converted for housing, commercial development, and infrastructure.
At the same time, Indonesia\u2019s forests and peatlands have been systematically cleared over decades. Human Rights Watch has documented how peatlands and forests continue to be\u00a0destroyed despite moratoriums and restoration pledges<\/a>.
Peat drainage and forest clearing\u00a0persist<\/a>\u00a0even in areas designated for protection and industrial expansion continues to\u00a0threaten<\/a>\u00a0remaining forest areas.
These patterns weaken natural defences, destabilise slopes, and increase runoff \u2014 making floods and landslides more severe.
The economic contradiction is becoming impossible to ignore. When disasters strike, the losses \u2014 damaged infrastructure, disrupted livelihoods, and costly recovery efforts \u2014 erode the very growth gains that land conversion was meant to deliver.
The World Bank has\u00a0repeatedly emphasised<\/a>\u00a0that Indonesia\u2019s long\u2011term growth prospects depend on strengthening environmental resilience and improving land governance.
Indonesia\u2019s development challenge is no longer simply about generating growth, but about generating growth that does not destroy the ecological foundation on which the economy depends. A land\u2011efficient growth model is now a strategic necessity.
This requires several shifts.
First, productivity must replace expansion as the core driver of growth. Agriculture can increase yields through better seeds, mechanisation, and post\u2011harvest systems rather than clearing new land. International experience shows that intensification can raise output while reducing pressure on forests. Industry can modernise production processes and improve energy efficiency instead of relying on physical expansion.
Second, Indonesia must accelerate its transition toward value\u2011added and knowledge\u2011based sectors \u2014 manufacturing technology, digital services, and the creative economy \u2014 which generate high economic returns with minimal land use. The\u00a0Asian Development Bank has stressed\u00a0<\/a>that boosting productivity and innovation is essential for escaping the middle\u2011income trap.
Third, development should prioritise the revitalisation of degraded land. Brownfield development \u2014 rehabilitating abandoned mining sites, idle land, and aging industrial zones \u2014 reduces pressure on forests while improving spatial efficiency. This approach aligns with circular economy principles and strengthens spatial planning.
Fourth, Indonesia can unlock the economic value of its environmental assets through carbon markets. Properly designed carbon trading mechanisms can incentivise forest protection and reforestation, turning ecosystems into productive economic assets rather than obstacles to development. With one of the world\u2019s largest tropical forest carbon stocks, Indonesia has significant potential in this area.
Strong spatial governance is essential. Enforcement of spatial planning regulations, protection of sustainable agricultural land, and decisive action against illegal or irresponsible land conversion must become central pillars of economic policy.
The World Bank\u2019s Land Governance Assessment highlights\u00a0persistent weaknesses\u00a0<\/a>in land administration, overlapping permits, and inconsistent enforcement \u2014 all of which undermine sustainable development.
Indonesia\u2019s recent disasters are a warning: the land\u2011hungry growth model of the past is reaching its limits. If the country continues to expand by clearing forests and converting land, the economic gains will be increasingly overshadowed by ecological losses and disaster risks. Sustainable, land\u2011efficient growth is not an environmental ideal \u2014 it is the only viable path to long\u2011term prosperity.
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This article was originally published under\u00a0<\/i>Creative Commons<\/i><\/a>\u00a0by\u00a0<\/i>360info<\/i><\/a>\u2122.<\/i>
Editor\u2019s Note:<\/i><\/b>\u00a0The opinions expressed here by the authors are their own, not those of impakter.com<\/i><\/span> \u2014\u00a0<\/i>Cover Photo Credit<\/i><\/b>: Pok Rie.<\/a><\/i>