PALMOILMAGAZINE, JAKARTA – As the world’s largest palm oil producer, Indonesia continues to enhance sustainable palm oil governance to ensure positive economic growth and job creation. Within the country’s Medium-Term Development Plan (RPJM), the palm oil sector is a key driver—not only for employment but also for food and energy security, including the B40 biodiesel program.
Global demand for responsibly produced palm oil is rising, particularly in European and American markets. To address this, the government has launched several initiatives to strengthen industry governance. One key policy is Presidential Instruction No. 6 of 2019, which serves as a guideline for stakeholders in supporting sustainable palm oil. Additionally, the government has extended the National Action Plan for Sustainable Palm Oil (RAN KSB) until 2029.
While labor issues are included in these regulations, more dialogue is needed to address workers’ concerns. Nursanna Marpaung, President of Jaga Sawitan and Executive Secretary of JAPBUSI, highlighted ongoing labor challenges in the palm oil industry, including employment contracts, wages, and decent working conditions. These issues remain a significant focus both domestically and in export markets.
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Efforts to address these challenges include stricter oversight, mandatory Indonesian Sustainable Palm Oil (ISPO) certification, and voluntary Roundtable on Sustainable Palm Oil (RSPO) certification. “However, implementation remains a major challenge. Over the past decade, social dialogue between workers and employers at both company and supply chain levels has played a crucial role in ensuring workers’ rights and improving working conditions,” Nursanna stated in an official statement received by Palmoilmagazine.com on Wednesday (26/2/2025).
To strengthen industrial relations, the Indonesian Palm Oil Association (GAPKI) and JAPBUSI established the “Jaga Sawitan” forum in February 2023. This forum aims to foster harmonious labor relations through strong social dialogue. Jaga Sawitan also helps resolve industrial disputes, improve working conditions, and enhance social security for palm oil workers. The initiative has gained support from various organizations, including the International Labour Organization (ILO).
Marking its second anniversary, Jaga Sawitan hosted a stakeholder dialogue titled “Workers in Sustainable Palm Oil Governance.” The event aimed to develop policy recommendations to improve industry governance, including the elimination of child labor and strengthening workers’ roles in sustainability efforts.
During the event, Jaga Sawitan proposed an integrated social compliance system, a digital monitoring and grievance resolution mechanism, and increased collaboration between workers and employers. These measures aim to boost Indonesia’s competitiveness in the global market while ensuring long-term welfare for palm oil workers. (P2)
