InfoSAWIT, JAKARTA - As the world's largest palm oil producer, Indonesia continues to strive for improved sustainable palm oil management to ensure positive impacts on economic growth and job creation. In the Medium-Term Development Plan (RPJM), this sector is highlighted not only for job creation but also for meeting food and energy needs, including the B40 biodiesel program.
Global demand for palm oil products produced through responsible practices is increasing, particularly in European and American markets. In response, the government has launched various initiatives to strengthen the governance of the palm oil industry. One such initiative is Presidential Instruction No. 6 of 2019, which serves as a guideline for stakeholders to support sustainable palm oil. This year, the government has decided to extend the National Action Plan for Sustainable Palm Oil (RAN KSB) until 2029.
Although labor issues are already included, the dialogue space for palm oil workers still needs to be expanded. Jaga Sawitan's presidency/Executive Secretary of JAPBUSI, Nursanna Marpaung, addressed various labor issues in the palm oil industry, including employment contracts, wages, and decent working conditions. These issues often attract attention both domestically and in export markets.
Various efforts have been made to address these issues, such as increased oversight, mandatory ISPO certification, and voluntary RSPO certification. “However, implementation still faces significant challenges. Over the past decade, social dialogue between workers and employers at the company level and along the supply chain has played a crucial role in ensuring the fulfillment of workers' rights and improving working conditions,” she stated in an official statement received by InfoSAWIT on Wednesday (February 26, 2025).
To strengthen industrial relations, the Indonesian Palm Oil Entrepreneurs Association (GAPKI) and JAPBUSI declared the "Jaga Sawitan" forum in February 2023. This forum aims to enhance harmonious industrial relations through strong social dialogue. Jaga Sawitan also plays a role in resolving industrial disputes, improving working conditions, and strengthening social guarantees for palm oil workers. This initiative has received support from various parties, including the International Labour Organization (ILO).
On its second anniversary, Jaga Sawitan held a stakeholder dialogue titled "Workers in Sustainable Palm Oil Governance." This dialogue aims to formulate policy recommendations to enhance palm oil governance, including the elimination of child labor and increasing the role of workers in the sustainability of the industry.
During this occasion, Jaga Sawitan also proposed an integrated social compliance system, a digital monitoring and complaint resolution mechanism, and enhanced collaboration between workers and employers. With these steps, Indonesia hopes that the palm oil industry can remain competitive in the global market while ensuring the long-term welfare of workers. (T2)
