Indonesia: Wings-01/Long Beluah
Community members of Long Lian and Long Beluah
Water pollution, waste management, land clearing
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 related to 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 and 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. The dispute resolution process is ongoing.
The dispute resolution process between the Company and the Long Beluah community is ongoing. However, the dispute resolution process between the Company and the Long Lian community is currently on hold as CAO has not been able to communicate with Long Lian representatives due to connectivity issues and Covid-related travel restrictions. The dispute resolution process with Long Lian will continue when the travel restrictions are lifted.
Status as of September 21, 2020
Note: A CAO assessment does not entail a judgment on the merits of complaints. Rather, the aim is to listen to people's concerns, understand the different perspectives, and determine what options are available to address the complaint through CAO's Dispute Resolution and Compliance functions.