JAKARTA (Joint Press Release) - Indonesia is the world’s largest producer of palm oil, producing more than 30 million tons annually, with an estimated 12 million hectares under cultivation. To improve working conditions and labour compliance in the palm oil industry, the Indonesian Palm Oil Association (GAPKI) and the Indonesian Trade Union Network for Palm Oil (JAPBUSI) are signing a Joint Declaration to Promote Social Dialogue for Indonesia’s Sustainable Palm Oil today (16/2) in Jakarta.

Signed by Joko Supriyono, Head of GAPKI, Nursanna Marpaung, Executive Secretary of JAPBUSI, and ten trade union federations who are actively organising workers in the palm oil sector in Indonesia. the signing marks a bipartite cooperation and synergy between employers and workers of the Indonesian palm oil industry to address decent work deficits in the sector, promote labour compliance and enhance the image of Indonesia’s palm oil industry. The Declaration focuses on the enhancement of the following labour issues to promote decent work in the palm oil industry:

• Ensuring an effective workplace bipartite cooperation;
• Respecting the fundamental rights to freedom of association and collective bargaining;
• Resolving industrial disputes through social dialogues;
• Improving representation of workers, particularly women workers; and
• Increasing the capacities of both GAPKI and JAPBUSI through various initiatives at national and international levels.

Joko Supriyono, Chairperson of GAPKI, emphasized the importance of bipartite cooperation between employers and workers to realize Indonesian palm oil sector as a sustainable sector. “To improve palm oil image we need to work collaboratively with various stakeholders including by improving communication and partnership with the trade union organizations. We believe in the value of efective and constructive dialogues as respecting workers’ rights is not only good for business but also good for workers,” he stated.

Meanwhile, Nursanna Marpaung, Executive Secretary of the JAPBUSI, highlighted the importance of social dialogue. “JAPBUSI consists of ten trade union federations nationwide and covers more than 10 million workers in the palm oil sector. We believe in joining forces with the employer through social dialogue so that we can openly discuss way to enhance the labour compliance of the palm oil industry, increase the productivity and ensure the sustainability of this important sector,” she said.

Greatly welcome the initiative, Michiko Miyamoto, Country Director of the ILO in Indonesia, applauded the effort taken by GAPKI and JAPBUSI as a foundation to fulfil the mandate of President Joko Widodo to ensure the sustainable development of the palm oil industry through social dialogues. “Good labour-management relation is essential for the creation of decent jobs and promotion of decent working condition in the palm oil sector that, in turn, will contribute to enhanced productivity and better investment climate,” she said.

The signing of the Declaration would be followed with the establishment of a taskforce to develop specific workplans in improving and implementing labour standards as well as in addressing decent work deficit in the sector.

For further information, please contact:

Yunirwan Gah
ILO’s National Project Coordinator on Workers’ Rights in the Palm Oil Sector
Email: yunirwan@ilo.org

Gita Lingga
ILO's Senior Communications Officer 
Email: gita@ilo.org