Palm oil industry is an important industry in Indonesia, estimated to employ more than five million workers. The industry is also the backbone of the Indonesian economy covering one third of the export values from the agricultural sector. However, the industry is still faced some challenges that still need to be improved including, among others, employment status, social dialogue, prevention of child labour, occupational safety and health (OSH), and labour inspection.

To ensure and maintain just, harmonize and sustainable industrial relations between workers and employers in the sector as well as to address challenges faced by the industry, five union confederations and its ten affiliated union federations in palm oil sector in Indonesia have committed to set up a Trade Union Network on Palm Oil Plantation in December in Jakarta. This initiative is align with the effort to promote a sustainable development and decent work in the palm oil sector in Indonesia.

The Network is envisioned to revitalize the dialogue between employers and trade unions in palm oil sector to address key decent work deficits in the sectors. The agreed goals of the Network are to strengthen the capacity of trade unions in advocating workers' common issues, to facilitate the communications flows and information sharing among unions in palm oil industry, to synchronize efforts for settling labour disputes and to strengthen the dialogue with tripartite constituents and other social stakeholders.

The Network is developed with collaborative support from the ILO through its Promoting Decent Work on Oil Palm Plantation in Indonesia  and CNV Internationaal, a trade union organization based in the Netherlands, that has worked with trade unions in Indonesia in promoting social dialogue in palm oil industry.

“The Network is expected to harness the communications among the unions in any advocacy works in this sector. The Network can also facilitate the dialogue with employers on issues related to industrial relations,” said Almansur, Head of Agriculture and Plantation Workers Federation (FSP PP KSPSI).

The Indonesia Palm Oil Employers’ Association (GAPKI) greatly welcomed the establishment of the Palm Oil Trade Union Network. “The dialogue between employers and workers is one of the important keys to ensure harmonious industrial relations and sustainability of this palm oil industry. The bipartite dialogue would build better communications between both parties that, in turn, would strengthen their commitments in ensuring decent work in the industry,” said Surmajono Saragih, Head of Employment of GAPKI.