Korindo Brings Plague of Deforestation and Rights Abuse to Papua

Civil society demand Indonesia’s Corruption Eradication Commission (KPK) to investigate suspected corruption linked to Korindo and demand Indonesian state-owned bank BNI to stop financing Korindo

Jakarta – A number of civil society organizations led an action in front of Indonesian state-owned bank BNI, the Indonesia’s Financial Services Authority (OJK) and Corruption Eradication Commission to demand policy makers and law enforcers to investigate the palm oil, rubber, plywood and other forestry operations of South Korean conglomerate Korindo Group in Papua and Maluku. This action follows the investigative reporting by Al Jazeera, Mongabay and Gecko Project released on Thursday, June 25, 2020 that found a suspicious “consultancy” payment in Korindo’s financial records that allegedly led to the land grabbing of Indigenous communities in Merauke, Papua. 

WALHI Jakarta Director and today’s action coordinator, Tubagus Soleh Ahmadi, state that the action was in solidarity with Papuan communities whose land rights have been violated by Korindo. “We have to stand with Papuan communities whose forests have been destroyed because decisions on politics, policy and law enforcement begin here in Jakarta. As urban folks that benefit from the oxygen that forests in Papua help provide, we feel the need to fight for this too,” stated Bagus.

This action is to pressure Indonesian state-owned bank Bank Negara Indonesia (BNI) as the largest Indonesian financier to Korindo Group, making the company its 6th largest client for the agricultural sector with loans up to IDR 2.8 billion in its 3rd quarter in 2017. Its financing for the company has increased from year to year with an increase of 19% per year. “We demand BNI to stop financing Korindo and to immediately evaluate its financing if there are no improvements in governance and sustainability by an agreed timeframe,” said Edi Sutrisno, Director of Transformasi untuk Keadilan (TuK) INDONESIA. The action was also held in front of Financial Services Authority (OJK) to pressure financial policy makers like OJK in Indonesia to conduct serious due diligence of Indonesian banks so they comply with higher Environmental, Social and Governance (ESG) policies and reduce their adverse environmental and human rights impact and prevent corruption. 

Edi also emphasized the need to synergize law enforcement efforts in Indonesia, Singapore and the United States in investigating corporate crimes and enforcing Anti Graft and Money Laundering laws, and to pursue sanctions according to the Magnitsky Act. “KPK must immediately investigate and take this matter seriously, investigating, coordinating and collaborate with law enforcement networks in other countries,” said Edi. 

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CONTACT: Linda Rosalina, [email protected] / +62 812-1942-7257

This post is also available in: Indonesian