A palm oil company partners with its trade union to improve the local community

SAMARINDA, East Kalimantan, Indonesia (ILO News Story) - Ani and her five colleagues represent the union and the company in a forum called the Bipartite Cooperation Institution (LKS Bipartit). This forum allows the company and workers to represent the interests of thousands of employees working in the palm oil plantation, processing sector, as well as farmers and communities part of the "plasma scheme" of the company.

The plasma scheme, initiated in the 1980s with the growth of the palm oil industry in Indonesia, became mandatory in 2007, requiring plantation companies to allocate 20% of new plantations to smallholder farmers. This scheme aims to ensure that rural communities benefit from nearby plantations by providing training, supplies of seedlings and fertilizer, guaranteed buyers for their oil palm fruit, and eventual land ownership. When implemented effectively, the plasma scheme can empower local communities and positively impact both local and national economies.

The Bipartite Cooperation Institution (LKS Bipartit) serves as a forum for communication and consultation on industrial relations within a company, comprising employers and registered labour unions recognized by the appropriate manpower authorities.

Ani has worked for PT Tritunggal Sentra Buana since 2017 as an administrator in the plantation unit department, while her husband has been a mechanic with the same company since 2005. Their home is not far from the plantation area, about 35 minutes by vehicle via the main road connecting three surrounding villages: Muara Badak Ulu Village, Saliki Village, and Batu-batu Village. These villages are home to 3,680 people, all using the same route to access the plantation.

In October 2023, Ani, as a representative from the worker's union in the company, was assigned to join training sessions where she learned about the concept of occupational health and safety (OSH), safety and health risk assessment in palm oil plantation, social dialogue, and gender concept.

After completing the training, Ani together with the LKS Bipartite members initiated a community improvement plan to identify good practices and concrete actions that could improve the safety and health of the workers. She shared that often plasma farmers in farmer groups work without considering risks, especially when racing against the palm fruit harvest targets, resulting a common minor injury among farmers.

In Muara Badak Ulu Village, initial efforts to discuss OSH with farmer groups faced challenges, particularly regarding unequal access to health benefits. Company employees had access to social security benefits (BPJS) for medical treatment, but smallholder farmers did not.
"Company workers have BPJS benefits, but smallholder farmers do not," confirmed Ani.

In response, Ani began assisting farmers in gathering information on those interested in registering for BPJS health insurance. Additionally, after discussions among the trade union, the community, and the company, the company-operated clinic was opened to the public, offering convenient medical care access for everyone.

After several social dialogues with the community, it was recommended that work tools be stored in a separate warehouse instead of living quarters. Hazardous chemicals are also kept in a separate hut, accompanied by posters detailing their dangers. The community received suitable work tools, including tojok (long pipes for piercing oil palm bunches), carts, and sprayer tanks for pest control.

Ani also happily reported, "The red soil roads we travel on every day have been repaired. They're no longer slippery and muddy when it rains."

As these initiatives take root, the collaboration between the company and the community continues to strengthen, fostering a more sustainable future for both. Ani sees that while some changes, such as improved access to health resources and enhanced working conditions, are now firmly established, others will require ongoing support from both parties to ensure sustainability.