Wages and Labour Rights in the Palm Oil Sector: Indonesia | Country Report

Abstract

This report presents worker-level evidence on wages and labour rights in the palm oil sector in Indonesia, based on two rounds of data collection in 2025 and 2026. Round 1 covered a broader group of plantation and mill workers, while Round 2 focused on plantation workers in harvesting and maintenance roles.

The report examines wage levels, minimum wage and living wage estimate gaps, target-based pay, wage theft, CBA coverage, and gender inequalities. It is intended as a practical evidence base for IPOWU-affiliated trade unions in negotiations, advocacy, and engagement with companies and policymakers. The report aims to answer the below five research questions:

1. What are the wage levels across different groups and contracts?
2. How are wages calculated, and are targets reasonable and transparent?
3. To what extent are Collective Bargaining Agreements implemented?
4. Is there evidence of wage theft or unpaid overtime?
5. What is the size and structure of gender pay gaps and other inequalities?