Indonesian wage hike may prompt palm-oil companies to mechanize

12/30/2012 | Wall Street Journal, The

Malaysian palm oil plantations may be forced to improve mechanical efficiencies in response to a proposal by two Indonesian islands to increase the wages of workers by 10% to 49% this year. The plantation companies may opt to mechanize the harvest process or target waste from fruit collection. The wage hikes could spark a labor shortage at Malaysian plantations, which lost workers in 2011 due to improved prospects in Indonesia.

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