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Indonesia

Introduction

Indonesia is the second-largest producer of coffee in Asia & Oceania (after Vietnam), and the 3rd largest producer of Robusta coffee globally (after Brazil and Vietnam). Around 60% of Indonesia’s coffee is exported. Main export markets include the US, Germany, Egypt, India and Belgium. The total area under coffee cultivation covers about 1,27 million hectares (end of 2023), with most coffee plantations found on the island of Sumatra. 

Coffee in Indonesia is primarily produced by smallholder farms. This implies a high degree of informal employment, which has implications for working conditions and workers’ access to social protection. As informal economy workers, they face higher levels of exposure to OSH risks than workers in the formal economy. Also, they are often not covered by national social security schemes, which limits their capacity to cope with life cycle risks (including sickness, maternity, old age, employment injury, invalidity, and death of breadwinner). Of the estimated 1,7 million workers engaged in coffee production in Indonesia, 41% are women, who are often engaged in unpaid work as household members.

Sectors

  • Agriculture

Team

When

April 2024 – January 2026

Project code

RAS/23/08/NES and RAS/23/09/MUL

Activities and expected outcomes

The project, implemented in partnership with Nestlé, aims to improve workplace safety and health, labour law compliance, social protection and gender equality in the coffee supply chain in Indonesia. End beneficiaries include smallholder farmers and coffee collectors and their workforce: workers cultivating and collecting coffee. Its regional focus is Lampung province, South Sumatra. The project will contribute to strengthening workplace safety and health and access to labour rights specifically for informal economy workers in agriculture. It also aims to strengthen coffee supply chain sustainability and farmers’ livelihoods.

The project works primarily at the workplace level (coffee farms, collectors) to identify and address decent work deficits in the coffee supply chain. Since there is a general lack of awareness and knowledge on OSH hazards and risks, the project will prioritize building the capacity of management and workers on gender-responsive OSH risk control and prevention. It will also support the implementation of the national Labour Code in line with international labour standards. Other envisioned activities will include the dissemination of OSH knowledge through strategic communication, the implementation of research, and the piloting of OSH improvement measures. 

Another key topic that the project will address is the impact of climate change on the safety, health and productivity of outdoor workers. It will develop and implement appropriate adaptation measures through strengthened workplace cooperation, with a specific focus on heat stress.