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GAR and Wilmar Call for Closer Collaboration to Find Solutions to Indonesian Palm Oil Sector Labour Challenges

Posted: Nov 07, 2016 3 minute read GAR 0 Likes

Bangkok/Singapore, 7 November 2016 – Golden Agri-Resources (GAR) and
Wilmar International Limited (Wilmar) call for closer collaboration from all
stakeholders in the Indonesian palm oil sector to help find improvements and
solutions to existing labour challenges. The two companies announced their
collaboration with Business for Social Responsibility (BSR), a global non-profit
organisation that works to build a just and sustainable world by developing
sustainable business strategies and solutions. The collaboration will begin with a
review of current labour practices in the palm oil sector in Indonesia, and is intended
to formulate practical approaches to improving labour practices.

Focusing on three major oil palm regions in Indonesia: Riau, North Sumatra and
Central Kalimantan, the review will identify current common practices, policies and
regulations across the industry. There is recognition of the need to improve labour
practices and conditions across the palm oil sector, including in Indonesia, which is
the world’s largest producer of CPO. The review is aimed at assessing gaps in the
existing practices and finding practical business processes and solutions to address
the key labour challenges in this sector.

GAR’s Managing Director for Sustainability, Agus Purnomo, said, “As a company
with a proud heritage of Indonesian employment, GAR is committed to a sustainable
plantation workforce. We see labour as the next important area of focus in
implementing our social and environmental policy (GSEP) and believe this study can
provide new insights into how we encourage future farmers, farm and mill workers
essential to the sector.”

Wilmar’s Chief Sustainability Officer, Jeremy Goon, said, “The palm oil sector
workforce forms the backbone of our company, and also the industry. We recognise
that there are issues, and we are committed to addressing them. Our industry needs
all the help and expertise that is available, and we therefore call for constructive
collaboration to help find and develop solutions that will truly benefit the workers.”

GAR and Wilmar are among the largest plantation owners in the world, each with
strong sustainability commitments, including to uphold international core labour
standards. Both companies recognise that labour issues in the palm oil industry are
diverse and complex, therefore a collaborative effort is needed to identify, mitigate
and address the root causes on the ground. It is hoped that the outcome of the study
by BSR will contribute to an industry-wide movement to improve labour standards.


BSR is a global non-profit organisation that works with its network of more than 250
member companies and other partners to build a just and sustainable world. From its
offices in Asia, Europe, and North America, BSR develops sustainable business
strategies and solutions through consulting, research, and cross-sector

GAR is one of the leading palm oil plantation companies with a planted area of more
than 480,000 hectares (including smallholders), located in Indonesia. It has
integrated operations focused on the production of palm-based edible oil and fat.
GAR is focused on sustainable palm oil production. In Indonesia, its primary
activities include cultivating and harvesting of oil palm trees; processing of fresh fruit
bunch into crude palm oil (CPO) and palm kernel; merchandising and refining CPO
into value-added products such as cooking oil, margarine and shortening. It also has
operations in China and India including a deep-sea port, oilseeds crushing plants,
production capabilities for refined edible oil products as well as other food products
such as noodles. For more information visit:

As a leading agribusiness group, Wilmar recognises we have a fundamental role to
play in developing quality products required by the world while ensuring a
responsible and sustainable manner of production. We adopt a holistic approach to
sustainability that is fully integrated with our business model. Guided by the
philosophy that our business must enhance stakeholder value while minimising our
environmental footprint, our business practices are aligned with universally
acceptable social and environmental standards. Wilmar’s
No Deforestation, No Peatand No Exploitation policy underpins our aspiration to make a
positive impact and drive transformation across the palm oil industry.

For more information, go to



Golden Agri-Resources
Archana Shah
[email protected]
(+65) 9182 4004

Wilmar International Limited
Iris Chan
Corporate Communications
[email protected]

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