JAKARTA, InfoSAWIT – TuK INDONESIA has officially filed a lawsuit against Bank Mandiri for alleged unlawful conduct in the South Jakarta District Court, case number 1186/Pdt.G/2024/PN.JKT.SEL, on November 13, 2024. The lawsuit also names PT Astra Agro Lestari (AAL) and its subsidiary, PT Agro Nusa Abadi (ANA), as co-defendants.
The lawsuit stems from accusations that Bank Mandiri, known as “Indonesia’s First Movers on Sustainable Banking,” failed to uphold its Environmental, Social, and Governance (ESG) commitments. The bank is alleged to have financed AAL, which has been criticized for engaging in activities that harm the environment, violate human rights, and disregard sustainability principles.
The case has drawn significant public attention, particularly as PT ANA has previously faced scrutiny over allegations of agrarian conflicts, legal violations, and human rights abuses in its operational areas. TuK INDONESIA’s legal action aims to hold financial institutions accountable for funding practices that potentially support unlawful activities and environmental damage.
Linda Rosalina, Executive Director of TuK INDONESIA, urged public and governmental vigilance regarding the case. “We hope this lawsuit sets a vital precedent for stricter legal enforcement against banks that enable legal violations, human rights abuses, and environmental destruction through their financing,” Linda stated in an official release quoted by InfoSAWIT on Wednesday (27/11/2024).
The initial court hearing, held on November 25, 2024, was attended by the plaintiff, TuK INDONESIA, and the co-defendants. However, Bank Mandiri, the primary defendant, was notably absent. This absence has fueled speculation about the bank’s commitment to the sustainability principles it often champions.
“The absence of Bank Mandiri reflects a lack of seriousness in upholding the ESG principles they claim to prioritize,” Linda added. She emphasized the necessity for financial institutions to take responsibility for the social and environmental impact of their financing activities.
The next court session is scheduled for December 2, 2024, with all parties expected to present their responses and positions regarding the lawsuit. TuK INDONESIA’s legal action underscores the importance of ensuring that financial institutions go beyond mere claims of sustainability by implementing tangible measures that promote social, environmental, and economic justice.
This lawsuit serves as a reminder that ESG promises without meaningful action amount to a betrayal of sustainable development principles. True sustainability must guarantee the well-being of both society and the environment, now and for future generations. (T2)
