SPVO – Improving the socially sustainable petrified wood and minerals supply chains from Indonesia
The petrified wood supply chain in Indonesia relies heavily on informal labour, with workers frequently earning below the provincial minimum wage, which itself often does not meet the World Bank's poverty threshold. Collectors in Java and Sumatra face precarious conditions, lacking contracts, social protections, and stable income. Unsafe working conditions are widespread, especially among informal collectors who work without personal protective equipment (PPE) or safety training, resulting in frequent injuries and health risks. Labour inspections are weak, and occupational safety enforcement is minimal.
This project aims to improve the livelihoods of informal workers and indirectly benefit over 14,000 people in four Indonesian villages. Key interventions include formalising labour through village-owned enterprises, implementing occupational safety and health (OSH) protocols, introducing income diversification via handicrafts and eco-tourism, and promoting fair pricing and transparency aligned with international standards.
A social sustainability risk analysis highlights systemic issues: wages below the living income, gender wage disparities, lack of contracts, and hazardous work environments. While child labour is not prevalent due to the physical nature of the work, indirect risks exist, especially in informal workshops and nearby agricultural sectors.
The project will collaborate with local non-governmental organisations (NGOs) and draw on the expertise of PT. BAS to replicate effective OSH practices across the supply chain. Special attention will be given to female economic participation, income diversification, and raising awareness around safety and labour rights. By empowering local communities and aligning with global sustainability standards, this initiative aims to set a precedent for ethical sourcing in the petrified wood sector and beyond.

Project number
NL-KVK-27378529-SPVO25S003Total budget
€ 500,000Countries
IndonesiaProject status
ImplementationBudget spent
Programme
Social Sustainability Fund (SSF)Tied status
UntiedContact
iati@rvo.nlProject partners
Cuperus Gedenken West B.V., Fosil Kayu, Netherlands Enterprise Agency, PT. Barokah Alam Stone, Stichting Local Impact HubSectors
Business development services| Type | Provider | Provider ref. | Receiver | Receiver ref. | Value (€) | Date | Value date |
|---|---|---|---|---|---|---|---|
| Incoming Funds | 500,000.00 | 13-05-2025 | 13-05-2025 | ||||
| Outgoing Commitment | Cuperus Gedenken West B.V. | 500,000.00 | 13-05-2025 | 13-05-2025 | |||
| Disbursement | Cuperus Gedenken West B.V. | 70,870.00 | 20-05-2025 | 20-05-2025 |