First Fair Work Monitor report published on Indonesia’s palm oil sector

The voices of palm oil workers in Indonesia

Read the full report

For the first time, the Fair Work Monitor has been conducted among palm oil workers in Indonesia. The Fair Work Monitor was implemented in collaboration with Indonesian palm oil trade union F HUKATAN and palm oil union network JAPBUSI. It examined to what extent palm oil workers earn a wage that allows them to live with security and dignity. In the provinces of Jambi and East Kalimantan, a total of 1,072 workers took part in the survey, providing valuable insights about their wages, living conditions, and labour rights.

A participatory tool that amplifies workers’ voices

This report builds on CNV Internationaal’s ongoing efforts to amplify workers’ voices through the Fair Work Monitor. This tool was developed by CNV Internationaal to measure working conditions from the workers’ own perspective. Its participatory methodology strengthens collective action and provides valuable insights that support social dialogue, collective bargaining, and due diligence processes across the global palm oil supply chain.

This Fair Work Monitor surveyed 1,072 workers in the districts of Bungo and Tanjung Jabung Barat (both in the Jambi province) and in the districts of Berau and Kutai Timur (both in the East Kalimantan province), between May and July 2025.

Key findings

In Jambi, many workers, especially daily labourers and those without union membership, earn below both the statutory minimum and the living wage. In Bungo, a quarter of workers report salaries more than Rp100,000 below the minimum, and nearly all fall short of a wage that would allow them to live in dignity. Low pay is closely tied to poor housing, food insecurity, high healthcare costs, and limited access to essential services. By contrast, East Kalimantan presents a somewhat more positive picture. Wages there are more uniform and generally meet sectoral minimums, thanks to stronger unions and active participation in wage councils. Yet also here, remote locations, high transport costs, and inflated local prices mean that earning the official living wage does not always guarantee security. Health challenges, food shortages, and children missing school persist.

Across both provinces, extra payments, bonuses, and in-kind benefits play a paramount role in sustaining livelihoods. For example, a large majority of workers lives in company-provided housing. Losing a job can mean losing a home, deepening their vulnerability. The Fair Work Monitor shows the especially vulnerable position of workers without a contract, who often deal with housing of insufficient quality. The study highlights that statutory minimum wages alone cannot secure a decent life, and living wage benchmarks, while useful, do not fully capture local realities. Worker-driven data from the Fair Work Monitor is essential for understanding the true cost of living and for supporting meaningful, evidence-based social dialogue. Union representation, structured consultation, housing arrangements, contract types, and target-based pay all influence workers’ financial stability and well-being.

Fair Work Monitor on palm oil in Indonesia

The road ahead

Closing the gap to living wages requires coordinated action across the palm oil sector. Growers need to prioritise vulnerable workers, formalise insecure contracts, and implement strategies to raise pay. Buyers and the RSPO should integrate living wage considerations into purchasing and certification practices, support social dialogue, and make use of worker-driven data to reflect local realities. Through phased roadmaps, ongoing monitoring, and collaboration with trade unions, the sector can move closer to ensuring that all workers earn wages that allow them to live safely, securely, and with dignity.