TuK INDONESIA officially filed a lawsuit for Unlawful Acts (Perbuatan Melawan Hukum/PMH) against Bank Mandiri at the South Jakarta District Court (PN Jaksel) under case number 1186/Pdt.G/2024/PN.JKT.SEL, dated November 13, 2024. Palm oil company PT Astra Agro Lestari (AAL) and its subsidiary, PT Agro Nusa Abadi (ANA), are also named as co-defendants in the lawsuit.

Bank Mandiri, which promotes itself as “Indonesia’s First Movers on Sustainable Banking,” is alleged to have failed to uphold its Environmental, Social, and Governance (ESG) commitments. The bank’s financing of AAL is considered to support practices that harm the environment, local communities, and violate sustainability principles.

This case has garnered attention because PT ANA, a subsidiary of AAL, has previously been accused of illegal activities, human rights violations, and agrarian conflicts in its operational areas. TuK INDONESIA has taken this legal action to hold financial institutions accountable for ensuring that their funding does not support unlawful practices, environmental destruction, or the neglect of community rights.

Linda Rosalina, Executive Director of TuK INDONESIA, urged the public and authorities to monitor the case closely and demand accountability from Bank Mandiri for the financing it has provided. 

“We hope this case sets a precedent for stricter legal enforcement against banks that finance projects contributing to legal violations, human rights abuses, and environmental damage,” Linda stated.

Unfortunately, the first hearing on November 25, 2024, was only attended by the plaintiff, TuK INDONESIA, and the co-defendants. Bank Mandiri, the primary defendant, did not appear at the initial hearing. The bank’s absence has raised several questions, especially given the lawsuit’s implications for its credibility as an ESG-focused financial institution.

“Bank Mandiri’s absence in court demonstrates a lack of commitment to sustainability principles and human rights. We hope this case becomes a turning point for financial institutions to adopt stricter criteria in their financing decisions and ensure that every project they support does not harm communities or the environment,” Linda emphasized.

The next hearing is scheduled for December 2, 2024, with the expectation that all parties will attend to present their positions and responses to the lawsuit. TuK INDONESIA’s action serves as a strong reminder that financial institutions can no longer hide behind sustainability claims while financing practices that harm the environment and violate human rights.

This lawsuit underscores the principle that ESG commitments without concrete actions constitute a betrayal of true justice and sustainable development. It reinforces the need for an integrated approach to environmental, social, and economic aspects to ensure public welfare for present and future generations.

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Originally published here by TUK Indonesia