GAPKI, Earthworm Foundation, and JAPBUSI Collaborate to Launch the Guideline on Daily Worker Contracts in Sustainable Palm Oil
Jakarta, 18 March 2025 – As part of efforts to improve sustainable labour practices in Indonesia’s palm oil sector, Indonesian Palm Oil Association (GAPKI), Earthworm Foundation, and Indonesian Palm Oil Workers' Union Network (JAPBUSI), today launched the Guideline on Daily Workers Contracts in Sustainable Palm Oil (PADU PERKASA). This guide aims to help companies align their labour management with Indonesian labour laws, improve workers' welfare, and support long-term business sustainability.
The Indonesian palm oil industry employs a large workforce, including daily workers who play a crucial role in the production process. However, they often face challenges related to ensuring fair wages, access to social protection, and adequate health and safety conditions. Despite regulations such as Law No. 13 of 2003 on Manpower, Government Regulation No. 35 of 2021, and Law No. 6 of 2023 that protect the rights of daily workers, implementation on the ground still faces various challenges.
Vice Chairman II of GAPKI, Susanto, stated, "The palm oil industry is one of the largest sectors in terms of labour absorption and supporting Indonesia's economy. While other industries are experiencing waves of layoffs, the palm oil industry remains resilient and continues to generate the second-largest foreign exchange. This must be maintained through better implementation of the policies."
PADU PERKASA was developed by GAPKI in collaboration with Earthworm Foundation and JAPBUSI as a reference for GAPKI members. It is hoped that, in addition to GAPKI members, other stakeholders in the palm oil industry will also use this guide to ensure compliance with regulations, including in the areas of labour governance and the protection of workers' rights. Ensuring the fulfilment of workers' rights and achieving their welfare can improve productivity and contribute to the sustainability of companies and the nation's economy.
Executive Secretary of JAPBUSI, Nursanna Marpaung, emphasised that companies should take more responsibility for managing daily workers in compliance with labour regulations. "Companies must ensure safe working conditions and the availability of social protection, build social dialogue with trade unions/workers, provide fair and decent wages, and create a better working environment. It is hoped that this guide will be implemented not only by GAPKI members but more widely, so that daily workers are better protected."
Furthermore, this guide also helps meet global sustainability goals. PADU PERKASA contains practical recommendations that can help companies improve their recruitment and labour management systems. The guide covers important aspects such as clear contracts, fair compensation, social protection, and the empowerment of workers, with a focus on compliance with the applicable legal framework.
Regional Director for Indo-Pacific at Earthworm Foundation, Indira Nurtanti, added, "With a solutions-based approach, Earthworm Foundation promotes the adoption of best practices that not only ensure compliance with the law but also enhance workers' welfare, strengthen harmonious industrial relations, and drive a sustainable palm oil industry in Indonesia."
With the launch of PADU PERKASA, it is hoped that Indonesia's palm oil sector can develop more responsibly, improve working conditions, and create a better working climate for all parties. The digital version of the guide (only available in Bahasa Indonesia) can be accessed at https://gapki.id/buku-gapki/.
