Indonesia: Wings-01/Long Beluah
Community members of Long Lian and Long Beluah
Water pollution, waste management, land clearing
US$44 million A-loan and US$44 million syndicated
According to IFC, in 2012 the Wings Group was undertaking a US$176 million project to: (i) expand its beverage product lines under PT Tirta Alam Segar (PT TAS), (ii) expand fruit-flavored beverage in plastic cups under PT Murni Alam Segar (PT MAS), (iii) commission a green-field coffee mix production under PT Harum Alam Segar (PT HAS), and (iv) increase the capacity of its existing detergent business under PT Sayap Mas Utama (PT SMU). The proposed IFC financing is a loan package of up to US$88 million (US$44 million A-Loan and US$44 million of syndicated B-loan) to those four entities of the Wings Group.
In November 2018, CAO received a complaint from AMAN Kaltim (Alliance of Indigenous Peoples of the Archipelago Kalimantan Timur), a local NGO, on behalf of community members living in Long Beluah and Long Lian, North Kalimantan, Indonesia. The complaint raises concerns regarding the environmental and social impacts of an oil palm plantation operated by PT Inti Selaras Perkasa (PT ISP). PT ISP, together with PT Prima Tunas Kharisma and PT Sentosa Sukses Utama, comprise Gawi Plantation, which is part of the Wings Group. The complaint raises concerns about water pollution, implementation of a government-approved plasma scheme, and land clearing without permission and/or consultation.
CAO found the complaint eligible for further assessment in February 2019. In May 2019, CAO conducted a field visit to Indonesia to discuss options for addressing the complaint with the relevant parties. During the assessment process, the complainants and the operator of the palm oil plantation expressed their desire to participate in a dispute resolution process.
Despite the parties' efforts to resolve the issues raised in the complaint, no agreement was ultimately reached through dispute resolution. Accordingly, CAO completed the dispute resolution process in November 2022 and published a Dispute Resolution Conclusion Report in English and Bahasa (available in the documents section below). At the complainants’ request, CAO transferred the case to the Compliance function for appraisal of IFC’s environmental and social performance related to its investment in the Wings Group.
The compliance appraisal process has been completed, with the corresponding appraisal report released in English and Bahasa in the "Case Documents" section below, published on April 12, 2023.
CAO concluded the compliance appraisal for this case on March 28, 2023. This case is now under compliance investigation.
Status as of March 30, 2023.