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Labour abuses found at Indonesian palm plantations supplying global companies - Amnesty

Reuters  |  JAKARTA 

By Eveline Danubrata and Bernadette Christina Munthe

JAKARTA (Reuters) - Global consumer companies, including Unilever, Nestle, Kellogg and Procter & Gamble, have sourced palm from Indonesian plantations where abuses were uncovered, Amnesty International said on Wednesday.

Children as young as eight worked in "hazardous" conditions at palm plantations run by Singapore-based Wilmar International Ltd and its suppliers on the Indonesian islands of Kalimantan and Sumatra, Amnesty said in a report.

Amnesty, which said it interviewed 120 workers, alleges that many of them worked long hours for low pay and without adequate safety equipment. The palm from these plantations could be traced to nine multinational companies, it said.

"Despite promising customers that there will be no exploitation in their palm supply chains, big brands continue to profit from appalling abuses," said Meghna Abraham, senior investigator at Amnesty.

The NGO said it chose Wilmar as the focus of its investigation as the company is the world's largest processor and merchandiser of palm and lauric oils, controlling more than 43 percent of the global palm trade.

Other companies operating palm plantations in Indonesia include Golden Agri-Resources Ltd , Indofood Agri Resources Ltd and PT Astra Agro Lestari Tbk .

Even though Indonesia had strong laws under which most of the abuses can amount to criminal offences, these laws were poorly enforced by the government, Amnesty said.

Wilmar said it welcomed the NGO's report, which helps to highlight issues within the broader palm industry, but added that finding a solution requires collaboration between governments, companies and civil society organizations.

(For Wilmar's full statement, click http://bit.ly/2fx0q1t)

"We acknowledge that there are ongoing issues in the palm industry, and these issues could affect any palm company operating in Indonesia," it said.

"The focus on Wilmar ... is often used to draw attention to problems in the wider palm industry."

Indonesia is the world's biggest producer of palm oil, used in everything from snacks and soaps to cosmetics and biofuels, with the sector employing millions of workers. But plantation operators say it is difficult to have complete oversight of conditions.

No company would "consciously" hire underage as that is against the law, but some plantation workers get their children to help out, Sumarjono Saragih, an official at the Indonesian Palm Association, told Reuters by telephone.

"If children want to help their parents, companies cannot forbid that."

Agus Justianto, an official at Indonesia's environment ministry, said that a company found guilty of violations could get its permit revoked, but it is "not in the environment ministry's domain."

Indonesia's manpower ministry did not immediately provide comment.

In an emailed statement, U.S. snack and breakfast food company Kellogg Co said it is committed to ensuring that its palm is obtained from "known and certified sources that are environmentally appropriate, socially beneficial and economically viable."

If Kellogg finds or is made aware of any supply chain violations, it would discuss corrective actions with its suppliers, it said. "If the concerns are not adequately addressed, we take action to remove them from our chain."

Unilever said while significant progress has been made to tackle environmental issues associated with palm cultivation, more needs to be done to address "these deeply concerning social issues" and promised to work with its partners.

Nestle and did not immediately provide comment.

(Reporting by Eveline Danubrata and Bernadette Christina Munthe in JAKARTA; Additional reporting by Masayuki Kitano in SINGAPORE; Editing by Tom Hogue)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Labour abuses found at Indonesian palm plantations supplying global companies - Amnesty

JAKARTA (Reuters) - Global consumer companies, including Unilever, Nestle, Kellogg and Procter & Gamble, have sourced palm oil from Indonesian plantations where labour abuses were uncovered, Amnesty International said on Wednesday.

By Eveline Danubrata and Bernadette Christina Munthe

JAKARTA (Reuters) - Global consumer companies, including Unilever, Nestle, Kellogg and Procter & Gamble, have sourced palm from Indonesian plantations where abuses were uncovered, Amnesty International said on Wednesday.

Children as young as eight worked in "hazardous" conditions at palm plantations run by Singapore-based Wilmar International Ltd and its suppliers on the Indonesian islands of Kalimantan and Sumatra, Amnesty said in a report.

Amnesty, which said it interviewed 120 workers, alleges that many of them worked long hours for low pay and without adequate safety equipment. The palm from these plantations could be traced to nine multinational companies, it said.

"Despite promising customers that there will be no exploitation in their palm supply chains, big brands continue to profit from appalling abuses," said Meghna Abraham, senior investigator at Amnesty.

The NGO said it chose Wilmar as the focus of its investigation as the company is the world's largest processor and merchandiser of palm and lauric oils, controlling more than 43 percent of the global palm trade.

Other companies operating palm plantations in Indonesia include Golden Agri-Resources Ltd , Indofood Agri Resources Ltd and PT Astra Agro Lestari Tbk .

Even though Indonesia had strong laws under which most of the abuses can amount to criminal offences, these laws were poorly enforced by the government, Amnesty said.

Wilmar said it welcomed the NGO's report, which helps to highlight issues within the broader palm industry, but added that finding a solution requires collaboration between governments, companies and civil society organizations.

(For Wilmar's full statement, click http://bit.ly/2fx0q1t)

"We acknowledge that there are ongoing issues in the palm industry, and these issues could affect any palm company operating in Indonesia," it said.

"The focus on Wilmar ... is often used to draw attention to problems in the wider palm industry."

Indonesia is the world's biggest producer of palm oil, used in everything from snacks and soaps to cosmetics and biofuels, with the sector employing millions of workers. But plantation operators say it is difficult to have complete oversight of conditions.

No company would "consciously" hire underage as that is against the law, but some plantation workers get their children to help out, Sumarjono Saragih, an official at the Indonesian Palm Association, told Reuters by telephone.

"If children want to help their parents, companies cannot forbid that."

Agus Justianto, an official at Indonesia's environment ministry, said that a company found guilty of violations could get its permit revoked, but it is "not in the environment ministry's domain."

Indonesia's manpower ministry did not immediately provide comment.

In an emailed statement, U.S. snack and breakfast food company Kellogg Co said it is committed to ensuring that its palm is obtained from "known and certified sources that are environmentally appropriate, socially beneficial and economically viable."

If Kellogg finds or is made aware of any supply chain violations, it would discuss corrective actions with its suppliers, it said. "If the concerns are not adequately addressed, we take action to remove them from our chain."

Unilever said while significant progress has been made to tackle environmental issues associated with palm cultivation, more needs to be done to address "these deeply concerning social issues" and promised to work with its partners.

Nestle and did not immediately provide comment.

(Reporting by Eveline Danubrata and Bernadette Christina Munthe in JAKARTA; Additional reporting by Masayuki Kitano in SINGAPORE; Editing by Tom Hogue)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
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Labour abuses found at Indonesian palm plantations supplying global companies - Amnesty

By Eveline Danubrata and Bernadette Christina Munthe

JAKARTA (Reuters) - Global consumer companies, including Unilever, Nestle, Kellogg and Procter & Gamble, have sourced palm from Indonesian plantations where abuses were uncovered, Amnesty International said on Wednesday.

Children as young as eight worked in "hazardous" conditions at palm plantations run by Singapore-based Wilmar International Ltd and its suppliers on the Indonesian islands of Kalimantan and Sumatra, Amnesty said in a report.

Amnesty, which said it interviewed 120 workers, alleges that many of them worked long hours for low pay and without adequate safety equipment. The palm from these plantations could be traced to nine multinational companies, it said.

"Despite promising customers that there will be no exploitation in their palm supply chains, big brands continue to profit from appalling abuses," said Meghna Abraham, senior investigator at Amnesty.

The NGO said it chose Wilmar as the focus of its investigation as the company is the world's largest processor and merchandiser of palm and lauric oils, controlling more than 43 percent of the global palm trade.

Other companies operating palm plantations in Indonesia include Golden Agri-Resources Ltd , Indofood Agri Resources Ltd and PT Astra Agro Lestari Tbk .

Even though Indonesia had strong laws under which most of the abuses can amount to criminal offences, these laws were poorly enforced by the government, Amnesty said.

Wilmar said it welcomed the NGO's report, which helps to highlight issues within the broader palm industry, but added that finding a solution requires collaboration between governments, companies and civil society organizations.

(For Wilmar's full statement, click http://bit.ly/2fx0q1t)

"We acknowledge that there are ongoing issues in the palm industry, and these issues could affect any palm company operating in Indonesia," it said.

"The focus on Wilmar ... is often used to draw attention to problems in the wider palm industry."

Indonesia is the world's biggest producer of palm oil, used in everything from snacks and soaps to cosmetics and biofuels, with the sector employing millions of workers. But plantation operators say it is difficult to have complete oversight of conditions.

No company would "consciously" hire underage as that is against the law, but some plantation workers get their children to help out, Sumarjono Saragih, an official at the Indonesian Palm Association, told Reuters by telephone.

"If children want to help their parents, companies cannot forbid that."

Agus Justianto, an official at Indonesia's environment ministry, said that a company found guilty of violations could get its permit revoked, but it is "not in the environment ministry's domain."

Indonesia's manpower ministry did not immediately provide comment.

In an emailed statement, U.S. snack and breakfast food company Kellogg Co said it is committed to ensuring that its palm is obtained from "known and certified sources that are environmentally appropriate, socially beneficial and economically viable."

If Kellogg finds or is made aware of any supply chain violations, it would discuss corrective actions with its suppliers, it said. "If the concerns are not adequately addressed, we take action to remove them from our chain."

Unilever said while significant progress has been made to tackle environmental issues associated with palm cultivation, more needs to be done to address "these deeply concerning social issues" and promised to work with its partners.

Nestle and did not immediately provide comment.

(Reporting by Eveline Danubrata and Bernadette Christina Munthe in JAKARTA; Additional reporting by Masayuki Kitano in SINGAPORE; Editing by Tom Hogue)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

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