09 May IN THE PURSUIT OF PROFIT, LAWS AND REGULATIONS ARE VIOLATED
Lives Lost, Jobs at Risk, Rising Poverty
Sustainable Development Goals in Question
PT. Aditya Agroindo (DTK/KPU)
In recent days, the public has been shocked by reports in the media about the irresponsible conduct of a palm oil plantation company regarding the health and safety of its workers and their families. The incident occurred at PT. Aditya Agroindo, a subsidiary of Kalimantan Plantation Unit (KPU), located in Simpang Hulu Subdistrict, Ketapang Regency. The company’s negligence in ensuring the right to health and safety for workers and their families led to the tragic death of a 3-year-old child, the daughter of a plantation worker recruited from eastern Indonesia.
Besides PT. Aditya Agroindo, KPU operates seven other subsidiaries: PT. Archipelago Timur Abadi, PT. Kalimantan Ria Sejahtera, PT. Kemilau Indah Nusantara, PT. Karya Dewi Putra, PT. Landak Agro Utama, PT. Palma Adinusa Jaya, and PT. Palma Adinusa Lestari. KPU itself is part of the DTK Opportunity Limited group, registered in the British Virgin Islands. Through PLM Investment Limited based in Hong Kong, the group holds approximately 95% ownership of KPU. The land under the Right to Cultivate (HGU) of PT. Aditya Agroindo covers 17,374 hectares, the same as its Plantation Business Permit (IUP).
Issues at PT. Aditya Agroindo
Media checks and field reports have revealed a range of problems at PT. Aditya Agroindo, starting with environmental issues. Pollution from leaking CPO processing waste has contaminated rivers in the Kapuas sub-watershed (sub-DAS), affecting water sources such as the Labai River used by nearby Indigenous communities. As a result, the company was subjected to customary law sanctions by these communities.
Furthermore, the company is embroiled in land disputes with local Indigenous communities who are part of its plasma scheme but have yet to receive any benefits or even be informed of the location of their allocated plasma land, despite being tied to a 30-year agreement.
Labor issues are also rampant at PT. Aditya Agroindo. Many workers have been employed for more than five years under daily labor status with no work contracts and without enrollment in the national health and employment insurance schemes (BPJS). Occupational health and safety standards are poor only some workers are provided with PPE, and health checks are irregular. Some elderly workers have been denied the right to retire. There are also reports of arbitrary transfers, dismissals without severance pay, and failure to respond to workplace accidents. Wages remain below the local minimum wage (UMK/UMKS), and the workers’ housing facilities are in poor condition. The workload is excessive, with double burdens (e.g., harvesting and land clearing), and there are signs of union-busting efforts by management.
When companies neglect the rights of workers and their families as seen in the case of a 3-year-old child who died due to a lack of company support it reflects a deeper systemic issue. This is not the first such incident, only the most publicized, involving a worker named Yohanes. We at Teraju Indonesia and the West Kalimantan Plantation Workers Union Federation continue to receive reports from union representatives at PT. Aditya Agroindo. Bipartite and tripartite negotiations have been attempted, but the company remains unresponsive, largely because local, provincial, and national governments have failed to impose sanctions. This inaction is driven by fear of losing investment, allowing blatant violations of laws and human rights to be dismissed as mere “hoaxes.”
Are human rights being sacrificed for profit, or is there a deeper issue of corruption and bribery when companies violate the law especially when the victims are powerless workers afraid of losing their jobs?
What the Government Must Do
Local and provincial governments in West Kalimantan must monitor, evaluate, and audit all investments especially in the palm oil sector. Companies that follow best practices in social and environmental areas should be publicly recognized, supported by clear evidence of compliance. Conversely, companies that violate laws must be held accountable through legal action, and the public must be informed of such violations.
The government must issue specific laws that protect the rights of palm oil plantation workers, including local governments passing regional regulations (Perda). Oversight, responsiveness, and collaboration with human rights and environmental organizations must be strengthened.
Monitoring and audit teams should include independent parties to ensure objectivity. These steps are essential to fulfill the government’s commitment to sustainable development.
The case of PT. Aditya Agroindo, a subsidiary of the DTK/KPU group, raises fundamental questions about whether the government is truly committed to achieving the Sustainable Development Goalsespecially within the palm oil sector. This should serve as a wake-up call for both national and local governments.
Agus Sutomo
Executive Director of Teraju Indonesia
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