InfoSAWIT, NEW YORK – The palm oil industry plays a crucial role in achieving Sustainable Development Goal (SDG) 8, particularly in creating decent jobs and fostering economic growth in rural areas of developing countries like Indonesia and Malaysia. This was emphasized by Izzana Salleh, Secretary-General of the Council of Palm Oil Producing Countries (CPOPC), during her speech at the United Nations Headquarters in New York on July 16, 2025.
According to Izzana, the palm oil sector has become an engine of economic growth that not only increases rural incomes but also promotes the establishment of formal jobs and better labor protections. This transformation, she noted, is the result of planned reforms aligned with national rural development strategies and the strengthening of smallholder farmers' roles.
“The palm oil industry significantly contributes to economic growth and rural inclusion. In Indonesia and Malaysia, its contribution to national Gross Domestic Product (GDP) reaches three to five percent,” Izzana stated, as reported by InfoSAWIT from CPOPC on Monday, July 21, 2025.
She also mentioned that this sector supports approximately 24 million jobs globally. In Malaysia, full employment has been achieved since 2000, with the palm oil industry as a key driver, particularly in Pahang, where 57 percent of smallholders were previously unemployed.
Furthermore, Izzana highlighted advancements in labor standards within the sector. Major companies are now ensuring compliance with minimum wage laws, health protections, maternity leave, and have reduced workplace accident rates by 50 percent, thanks to stricter safety protocols such as the use of Personal Protective Equipment (PPE), mobile clinics, and complaint systems.
In terms of labor rights and inclusion, certification schemes like the Malaysian Sustainable Palm Oil (MSPO), Indonesian Sustainable Palm Oil (ISPO), and the Roundtable on Sustainable Palm Oil (RSPO) have integrated international labor norms. This includes prohibitions on child labor, fair wages, gender equality, the right to unionize, and complaint mechanisms.
Women are increasingly occupying leadership positions, especially in processing facilities. Social protections such as insurance, housing, and childcare services are also beginning to cover both migrant and domestic workers.
“Looking towards 2030, we have seen significant reforms in the palm oil industry—from formalizing work, mechanization, to enhancing workforce skills. This is evidence that the sector can pave the way for more inclusive and sustainable development,” Izzana concluded. (T2)
