Background

With the support of the Government of Indonesia and the social partners, the ILO undertook a diagnostic process on decent work in the palm oil sector in March 2015. The purpose of it was to identify opportunities and challenges for promoting decent work on oil palm plantations as the basis for a national action plan.

The diagnostic process focused on the experiences of the tripartite constituents in the palm oil sector. It covered such topics as engagement and recruitment of workers, wages, maternity protection, workmen’s compensation, housing, medical care as well as the Fundamental Principles and Rights at Work. Within Indonesia, there is a momentum moving towards collaborative change, which can strengthen its economic advantage in the palm oil sector in a sustainable way, improving working and living conditions of plantation workers and the image of the country’s palm oil sector.

The survey results were discussed by the constituents in a tripartite setting in August 2015. During the meeting the constituents also developed a national plan of action on the promotion of decent work on oil palm plantations. The action plan is organized around six areas in line with the results of the diagnostic process: (i) Employment status; (ii) Wages; (iii) Social dialogue; (iv) Occupational safety and health; (v) Child labour; and (vi) Labour inspection. For each of the areas, agreed actions were defined, which form the basis of the current project activities.

The current scope of project’s activities will focus on assisting the tripartite constituents in the implementation of the national action plan and will provide support for the development of the measures for improving decent work in selected palm oil plantations in Indonesia.

Project Strategy

The overall objective of the project is to promote sustainable rural livelihoods through decent work conditions and opportunities for workers on Indonesia’s oil palm plantations. The project’s main goal is to increase the capacity of national, provincial and local governments, workers’ and employers’ organizations to address employment and labour-related challenges in the oil palm plantations sector.

The present project activities forms part of a four-year strategy for promoting decent work in plantations in Indonesia. It comprises the basic elements for the implementation of the strategy in the first two years from 16 March 2017 to 31 December 2018.

Outcomes, outputs and activities:

Outcome 1: Strengthened capacity of the ILO tripartite constituents – governments, workers and employers – and other relevant stakeholders to design, implement and monitor targeted measures for the promotion of decent work in the oil palm plantations sector (institutional development component).

• Output 1.1. An action plan on decent work in plantations designed and monitored to sustainably address decent work challenges within the palm oil plantation sector
• Output 1.2. Enhanced knowledge and capacity of tripartite constituents for addressing decent work challenges in plantations.

Outcome 2: Improved working conditions in targeted plantations in selected districts (direct support component).

• Output 2.1. OSH management systems revised and updated in close collaboration with bipartite committees.