State plantations pay workers properly, says GAPKI chairman

The Jakarta Post, Jakarta

The Indonesian Palm Oil Producers Association (GAPKI) has denied a media report that state-owned palm oil company PT Perkebunan Nusantara (PT PN) IV in North Sumatra, has underpaid its workers, saying the company's workers were paid higher than the recommended monthly minimum wages.

Derom Bangun, chairman of GAPKI, said in a press release here recently that the remuneration package and the social security programs in the company were based on the collective labor agreement between the management and workers.

"According to the collective labor agreement, the minimum wage paid to workers with three children is Rp 633,100 (US$68) while the monthly minimum wage in the province is Rp 537,000," he said.

In comparison, several low-ranking workers employed in palm oil, cocoa and rubber plantations owned by PT PN II and PT PN IV in Tanjungmorawa and Bah Jambi, respectively, have complained about their poor condition. They said they were paid Rp 350,000 monthly and they were not insured in the social security programs (Jamsostek).

Bangun said further that PT PN IV's permanent workers were given housing with free electricity and tap water.

"Besides receiving two sets of clothes annually and Rp 633,100 in annual bonus, workers are allowed to take an annual leave with a Rp 201,375 allowance. Those working for 24 years or more will receive a Rp 2 million bonus from the company," he said.

He added that workers were registered only with the pension program with a monthly premium of Rp 15,667 from the company.

Derom also said GAPKI has also recommended to the two companies to continue improving labor conditions in an effort to make Indonesia the top producer of palm oil in the world.