Indonesian minister pushes fair, sustainable growth in palm oil sector

Indonesia’s Manpower Minister Yassierli has emphasized the need to balance the sustainability of the palm oil industry with the welfare of its workers.

“The palm oil industry plays an important role in the national economy. Thus, it is essential to maintain a balance between industrial sustainability and workers’ welfare,” he said in a statement on Tuesday.

He noted the sector’s strategic role in contributing to foreign exchange earnings, job creation, and rural development.

According to the Ministry of Agriculture, the number of workers in the palm oil industry rose from 12.5 million in 2015 to around 16.5 million in 2024.

Of this total, 9.7 million are direct labor, including 5.2 million smallholder plantation workers and 4.5 million in state-owned and private plantations.

The remaining 8 million are indirect labor involved in transporting fresh fruit bunches and crude palm oil, supplying fertilizers and equipment, and other related activities, Yassierli said.

He stressed that maintaining harmonious social dialogue is key to ensuring a fair and productive industry.

The minister expressed optimism that constructive communication between employers and workers will help advance the industry and foster a more decent and sustainable work environment.

“The Ministry of Manpower always supports efforts to strengthen bipartite relations in the workplace. Good social dialogue is the foundation for creating a fair, sustainable, and productive workplace,” Yassierli said.

Tags: Indonesia, palm oil, Sustainability