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 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 parties expressed their desire to participate in a dispute resolution process, which commenced in November 2019.
Despite the parties' efforts in the dispute resolution process to resolve the issues raised in the complaint, no agreement was ultimately reached. Accordingly, CAO completed the dispute resolution process in November 2022 and transferred the complaint to CAO’s Compliance function for appraisal, in accordance with CAO’s policy. CAO will conduct a compliance appraisal to determine whether an investigation of IFC’s environmental and social performance is merited in relation to the issues raised in the complaint or whether to close the case.
The conclusion report is now available in English and Bahasa under the “Case Documents” section below this page.
The dispute resolution process concluded with no agreement. The case has been transferred to Compliance.
Status as of October 31, 2022