# Indonesian palm oil industry challenges

> Live situation record from CLSTR: https://clstr.news/situations/indonesian-palm-oil-industry-challenges
> Updated: 2026-09-02T03:45:46.000Z. Sources: 3. Developments: 2.

Stakeholders in the Indonesian palm oil industry are addressing various regulatory, safety, and economic challenges. Initially, industry representatives and journalists collaborated to promote sustainable management and counter global ‘black campaigns’ that use environmental and labor issues to discredit the sector. During this period, concerns were raised regarding the ‘strict liability’ clause in Law No. 32 of 2009, which can hold companies liable for fires occurring outside their concession areas.

As the situation progressed, focus expanded to include occupational health and safety (K3) and the welfare of smallholder farmers. While large corporations face implementation difficulties regarding worker health, small-scale farmers often operate without legal labor protections. Additionally, the Palm Oil Rejuvenation (PSR) program has faced declining targets due to burdensome administrative requirements. Other systemic issues impacting farmers include Fresh Fruit Bunch (TBS) pricing, land legality within forest areas, and the threat of farmland seizure.

## Timeline

### 2026-09-02: Indonesia palm oil industry faces safety and farmer welfare challenges

Indonesian palm oil stakeholders are calling for improved worker safety standards and addressing hurdles in smallholder rejuvenation programs and land legality issues.

2 sources. https://clstr.news/cluster/indonesia-palm-oil-industry-faces-safety-and-farmer-welfare-challenges

### 2026-08-29: GAPKI and PWI hold workshop to support Indonesian palm oil industry

GAPKI and PWI held a workshop in Yogyakarta to promote sustainable palm oil management and address regulatory challenges, including strict liability laws and global disinformation campaigns.

2 sources. https://clstr.news/cluster/gapki-and-pwi-hold-workshop-to-support-indonesian-palm-oil-industry

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Cite as: Indonesian palm oil industry challenges. CLSTR, https://clstr.news/situations/indonesian-palm-oil-industry-challenges
