Indonesia: PepsiCo linked to worker exploitation in the palm oil sector through joint venture partner Indofood; companies respond


This report was produced by OPPUK, Rainforest Action Network, and International Labor Rights Forum and includes comments by the Indofood and PepsiCo.

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21 June 2016

The Human Cost of Conflict Palm Oil

Author: OPPUK, Rainforest Action Network, International Labor Rights Forum

Jun 2016

Indofood: PepsiCo’s hidden link to worker exploitation in Indonesia

…While the language reads strongly on respecting workers’ rights, as well as protecting High Carbon Stock Forests and peatlands, unfortunately PepsiCo’s policy contains a loophole: it does not require its joint venture partner, Indofood — one of the largest palm oil growers in the world, the biggest food company in Indonesia, and the sole maker of PepsiCo products in Indonesia — to meet the same requirements for the palm oil it uses to make PepsiCo’s products…

…In order to understand the impact of this exclusion on palm oil workers, a team of researchers investigated the living and working conditions of laborers on two palm oil plantations that are owned and operated by PepsiCo’s joint venture partner Indofood, under its subsidiary plantation company PT PP London Sumatra Tbk‘s (Lonsum), located on the island of Sumatra in Indonesia…

Indofood and PepsiCo were given the opportunity to respond to the key findings of this report prior to publication…

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16 June 2016

Pepsi linked to child labor and worker exploitation

Author: Vaidehi Shah, Eco-Business

American food multinational PepsiCo’s Indonesia-made products are linked to child labor, unethically low wages, and worker exploitation, a new investigative report by environmental and labor rights groups has found…

...In responses published in the report, PepsiCo pointed to its Palm Oil Action Plan, launched last year, which says that all its palm oil suppliers in its supply chain must uphold human rights standards, and are not allowed to use forced or child labor on their plantations…

Indofood, too, declined to comment on the report, saying that as far as it is concerned, it has complied with all Indonesian laws and regulations…

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