State plantations pay workers properly, says GAPKI chairman

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.