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.

SSF-standaard
Decent Work and Economic Growth

Project number

NL-KVK-27378529-SPVO25S003

Total budget

€ 500,000

Countries

Indonesia

Project status

Implementation

Budget spent

14.17 %
14.17 % spent

Tied status

Untied
Startdate:
Enddate:

Project partners

Cuperus Gedenken West B.V., Fosil Kayu, Netherlands Enterprise Agency, PT. Barokah Alam Stone, Stichting Local Impact Hub

Sectors

Business development services
Transactions
TypeProviderProvider ref.ReceiverReceiver ref.Value (€)DateValue 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