“Fence culture”: grounding global China in Kalimantan

Indonesia’s palm oil sector is increasingly entangled with China. China is second only to India as an export destination for palm oil, while Chinese companies have started to become active in the plantation and processing sectors across various Indonesian provinces. This article examines the micro-politics of one Chinese company’s operations in Kalimantan. Drawing on interviews conducted in Jakarta and various sites in Kalimantan in 2022, we consider Zongyuan’s interactions with local communities and the specific dynamics of land and labor relations. While on paper this looks to be a successful enterprise with endorsement from governments of Indonesia and China, on the ground, Chinese investment must contend with its limited authority over land. Our analysis highlights sustained conflicts over access to land and associated profit sharing, which at times result in “fence” building, i.e. outright community resistance. It also highlights the deep challenges the company faces in maintaining adequate plantation labor. Ultimately Zongyuan’s case points to China’s global engagements being a set of highly contingent practices, networks, and power relations, beset by conflict, accommodation, bargaining, learning, and adaptation to more closely reflect our case.