Amid high hopes for justice regarding financing practices that destroy the environment and seize community land, the South Jakarta District Court has postponed the reading of the verdict in the lawsuit against PT Bank Mandiri. The lawsuit filed by TuK INDONESIA highlights Bank Mandiri’s financing of Astra Agro Lestari's (AAL) subsidiary, PT Agro Nusa Abadi (ANA), which operates without a Land Use Right (HGU) in North Morowali, Central Sulawesi.

The verdict, originally scheduled to be read on July 3, 2025, was suddenly postponed until July 17, 2025, without being announced in an open hearing. The plaintiffs only received notification of the postponement on the day of the hearing through the e-Court system.

“This abrupt delay cannot simply be seen as a matter of technicality. It will only worsen the uncertainty felt by Bank Mandiri clients, who pushed for this lawsuit to demand clarity on whether their funds are used to finance land grabbing and environmental destruction,” stated Linda Rosalina, Executive Director of TuK INDONESIA. “A swift verdict would have served as a good precedent in building accountability in the finance sector. With this delay, now it only reveals how bleak Indonesia’s legal uncertainty is,” she emphasised.

The lawsuit against Bank Mandiri was based on the fact that PT ANA, a beneficiary of Bank Mandiri, had been running palm oil plantation operations in North Morowali, Central Sulawesi without possessing a Right to Cultivate (HGU). These illegal operations were catalysts of numerous and extensive social conflicts, including intimidation of local residents as well as unbridled destruction of ecosystems.

“Agrarian conflicts stemming from plantation operations under Astra Group cover approximately 37,620 hectares and involve at least eight subsidiary companies. Under Indonesian law—including the Basic Agrarian Law (UUPA) of 1960, the Plantation Law, and regulations in the banking sector—every plantation company is legally obligated to obtain a Right to Cultivate (HGU) and a Plantation Business Permit (IUP) before commencing operations,” explained Roni Septian Maulana, Head of the Policy Advocacy and Network Development Department at the Agrarian Reform Consortium (KPA).

Roni also added that the absence of HGU for PT ANA, along with the lack of oversight by the Astra Group and Bank Mandiri, constitutes a serious legal violation.

“The postponement of the verdict by the Panel of Judges at the South Jakarta District Court reflects a lack of professionalism in the judiciary and signals an unwillingness to uphold justice in matters of land rights and environmental protection in Indonesia,” said Roni.

Calls for fair action also came from other civil society and environmental organisations. They view this delay as the last opportunity for the court to take a stand for ecological and public justice.

“The court should not postpone the decision without clear reasons. Customers need legal certainty that their money is not being used to fund illegal projects. The judges' decision will be a crucial step determining whether they side with the public or corporations,” emphasised Zaki Amali, research manager from Trend Asia.

Meanwhile, environmental organisations like WALHI Riau remind us that this decision will reflect how much Indonesia's legal system values the environment.

"We hope the postponement of the verdict will serve as a crucial moment for the Panel of Judges to ensure that the forthcoming judgement is both accurate and principled—one that upholds the integrity of the environment and contributes to meaningful reforms in the banking sector. Financial institutions must no longer recklessly fund extractive industries that devastate ecosystems and disregard fundamental human rights," said Boy Even Sembiring, Executive Director of WALHI Riau.

Solidarity also comes from the global community. International organisations such as Friends of the Earth Netherlands (FoE) and BankTrack emphasise that banks' responsibility for environmental and human rights violations is non-negotiable.

“We stand in solidarity with Indonesian civil society to achieve accountability for the country's financial sector. The DesakMandiri lawsuit is spot on and supports affected communities that are living the climate and biodiversity crisis every day. The financial sector needs to urgently defund deforestation and human rights violations. We hope the court will use the delay time wisely to study all arguments and make an informed decision that will support and promote human rights and the rule of law rather than corporate interests,” said Danielle from Friends of the Earth Netherlands.

“Banks have a clear responsibility under international standards to prevent and address the human rights impacts of their financing, and courts must consider these standards carefully. We hope the court will use this additional time to thoroughly review the arguments presented by BankTrack and other allies in their amicus curiae briefs, ultimately delivering a decision that prioritises the rights and well-being of people over corporate interests,” added Ola Janus from BankTrack.

Regardless, the delay of a verdict will not hinder civil society in demanding accountability from banks as a link in the chain of ecological destruction and unconstitutional land grabbing. We urge the public and the media to continue covering this case and not be swayed by narratives that only serve to weaken the voice of the people.