InfoSAWIT, JAKARTA – Indonesian palm oil exports to the United States face fresh trade challenges after US Customs and Border Protection (CBP) issued Withhold Release Orders (WROs) against palm oil and derivative products produced by two Indonesian plantation companies, MAR and HIP.
Under the orders, CBP officers at US ports of entry will detain shipments covered by the restrictions. The agency said its decision followed a review of evidence indicating reasonable grounds to suspect that forced labor had been used in the production of palm oil and related products from the two companies.
“Mengeksploitasi pekerja adalah tindakan yang tidak manusiawi serta merugikan keamanan ekonomi dan nasional kita,” said Susan S. Thomas, Executive Assistant Commissioner of CBP’s Office of Trade, as reported by InfoSAWIT, citing Kompas on Monday (October 5, 2026).
Thomas warned that labor exploitation extends beyond workplace conditions, potentially harming workers while creating economic and national security risks for businesses and consumers in the United States.
CBP Identifies Forced Labor Indicators
CBP issued the WROs under Section 307 of the Tariff Act of 1930, codified at 19 U.S.C. 1307, which prohibits the importation of goods produced wholly or partly through forced labor.
According to CBP, its assessment drew on multiple sources, including interview transcripts, wage records, harvesting quota information, photographs, reports from government agencies and non-governmental organizations, media coverage, and academic research.
The agency said it identified nine indicators of forced labor associated with MAR: withholding of wages, debt bondage, deception, retention of identity documents, isolation, excessive overtime, intimidation and threats, abusive working and living conditions, and abuse of workers’ vulnerability.
For HIP, CBP identified seven indicators, including debt bondage, withholding of wages, deception, excessive overtime, poor working and living conditions, intimidation and threats, and abuse of vulnerability.
CBP said the evidence provided reasonable grounds to suspect forced labor, which generally involves work performed involuntarily under the threat of a penalty. The agency also cited trade data indicating that products covered by the orders were being, or could potentially be, imported into the US market.
Shipments Face Detention at US Ports
The WROs mean shipments covered by the orders may be detained when they arrive at US ports of entry. Importers whose goods are held can seek to re-export or destroy the shipments, or submit evidence demonstrating that the products were not made using forced labor.
The restrictions form part of the US government's enforcement of its forced-labor import ban. CBP said information supporting such action can come from various sources, including government agencies, the media, non-governmental organizations, and members of the public.
With the latest orders against MAR and HIP, CBP said it was enforcing 60 WROs and eight findings under Section 307.
Labor Standards Become a Critical Supply Chain Issue
The action underscores the growing importance of labor practices in international palm oil trade. Alongside production capacity, market access, and sustainability requirements, working conditions across supply chains are increasingly subject to scrutiny by importing countries.
For companies affected by the orders, shipment detention could disrupt access to the US market while the restrictions remain in place.
The case also highlights how allegations of forced labor can trigger border enforcement measures, placing greater emphasis on labor compliance, supply chain transparency, and verifiable production practices in Indonesia’s palm oil industry. (T1)
