#DesakMandiri Lawsuit: Expert Affirms Bank Mandiri’s Responsibility for Financing Impacts

PRESS RELEASE

The civil lawsuit against Bank Mandiri continued on Thursday, April 10, 2025, at the South Jakarta District Court. In this hearing, the plaintiffs presented an expert witness on business and human rights, Prof. Iman Prihandono, S.H., M.H., LL.M., Ph.D., who is also a professor at the Faculty of Law, Universitas Airlangga. In his testimony, Prof. Iman affirmed that Bank Mandiri bears responsibility for the impacts of its financing, especially when such financing is linked to alleged human rights violations and environmental degradation.

According to Prof. Iman, within the framework of business and human rights, corporations have a duty to respect human rights by avoiding negative impacts on all stakeholders, including workers, Indigenous communities, and the environment. He emphasized the importance of the “knowing and showing” principle—meaning corporations must be able to identify potential impacts of their operations or financing activities and disclose them transparently through reporting.

Prof. Iman explained that corporate involvement in human rights violations can occur directly, through contribution to violations, or indirectly, such as through financing projects that lead to abuses. In all these forms, concrete remedies for victims are still required.

“Corporate responsibility does not automatically disappear just because a company claimed to have conducted due diligence. If violations are still occurring, it is a clear indication that due diligence was not carried out properly,” —Prof. Iman Prihandono, S.H, M.H., LL.M., Ph.D.

He also highlighted the important role of the banking sector in upholding the principles of sustainable finance as mandated by POJK Regulation No. 51/2017. This regulation requires financial institutions to integrate sustainability into their operations, including by not funding businesses that harm the environment or violate community rights. However, he criticized the weak implementation of these rules.

“Sustainability reports are often just formality and lack genuine evaluation,” said Prof. Iman. He emphasized that the existence of such regulations cannot be used as a shield to evade accountability. “If financing causes harm to communities or the environment, the bank must still be held accountable,” he asserted.

On corporate structure, Prof. Iman stated that in certain cases, the separation between a parent company and its subsidiaries can be disregarded, particularly if there is dominant control. When a parent company exercises full control over the policies and operations of a subsidiary, the two can be seen as a single legal entity. In such situations, legal responsibility does not stop at the subsidiary but can extend to the parent company as the controlling entity.

Lastly, Prof. Iman emphasized that human rights violations do not need a court ruling to be acknowledged. The existence of real victims or harm is sufficient to determine that a violation has occurred. Within the legal system, anyone who suffers from human rights abuses has the right to file a lawsuit. Therefore, the public lawsuit against Bank Mandiri stands on strong legal and moral grounds to demand accountability for harms caused by irresponsible financing.

TuK INDONESIA, the organization supporting this lawsuit, reiterated that financial institutions like Bank Mandiri must be held accountable for the impacts of their funding. They argue that banks cannot turn a blind eye to the destruction caused by the projects they finance.

“It’s time banks stopped talking about sustainability only in words. Commitment must be demonstrated through real accountability,”  —Linda Rosalina, Executive Director of TuK INDONESIA.

This lawsuit is seen as a critical step in demanding accountability from the financial sector for its contribution to environmental crises and human rights violations. The public hopes that the judiciary will issue a ruling that upholds ecological and human justice.

Contact:
Annisa (+62 878-8444-6640 / [email protected])

Follow TuK INDONESIA’s Lawsuit Progress:
Website: https://www.tuk.or.id/desak-mandiri/
Documentation: Google Drive

#DesakMandiri
#JanganTanggungSendiri

This post is also available in: Indonesian