Bank Mandiri Mediation Fails, TuK INDONESIA’s Lawsuit Moves to Substantive Examination

Press Release

Jakarta, January 15, 2025 – The mediation process for TuK INDONESIA’s civil lawsuit against defendant Bank Mandiri, with Astra Agro Lestari (AAL), and PT Agro Nusa Abadi (PT ANA) as co-defendants, concluded unsuccessfully, as noted by the mediator judge on January 14, 2025. The mediation effort ultimately failed due to Bank Mandiri refusing to meet TuK INDONESIA’s requests to cease financing AAL and PT ANA and issue a formal apology for providing previous financing. TuK INDONESIA emphasized that ceasing funding and issuing a formal apology are non-negotiable terms if Mandiri wants to stay in line with its accountability for the environmental and social impacts caused.

The mediation process is a mandatory procedure in civil cases as stipulated under Supreme Court Regulation (PERMA) No. 1 of 2016 on Mediation Procedures in Court. Mediation aims to provide an opportunity for parties to resolve disputes amicably without proceeding to a full court hearing. In this case, the mediation was intended to allow Bank Mandiri, AAL, and PT ANA to take moral responsibility as part of an initial resolution. However, the mediation did not reach an agreement, and the case will proceed to substantive examination at the South Jakarta District Court.

Linda Rosalina, Executive Director of TuK INDONESIA, expressed her disappointment over the mediation’s failure, which she believes reflects the defendants’ and co-defendants’ lack of good faith in taking responsibility for the impacts caused. “Mediation should have been a space for the parties to demonstrate their commitment to resolving this issue fairly and peacefully. However, this failure shows that the defendants chose to evade responsibility. We will not stop here. We will continue to fight for justice for affected communities and the damaged environment,” Linda asserted.

According to Linda, Bank Mandiri’s actions as a financial institution supporting companies with poor environmental records, such as AAL and PT ANA, must be seriously addressed. “This is not just about one case; it concerns a funding system that disregards social and environmental impacts. When financial institutions fail to ensure their funds are not used for destructive activities, they share responsibility for the harm caused,” she added.

This case also represents a significant test for Indonesia’s judicial and regulatory system in enforcing corporate accountability principles. TuK INDONESIA believes the public has the right to know the extent to which companies and banks act responsibly, especially regarding long-standing adverse impacts on local communities and ecosystems. “This lack of transparency cannot be allowed to continue. We need real change, not just empty commitments,” Linda said.

With the substantive hearing scheduled for January 22, 2025, TuK INDONESIA hopes the court will not only commit to delivering justice to affected communities but also send a firmer message to financial institutions and companies to act more responsibly. “We believe a decision that upholds justice will strengthen the future of local communities and support better environmental sustainability efforts,” Linda concluded.

TuK INDONESIA calls on the public to continue monitoring this case. “Public support is vital to ensure transparency and prevent those responsible from escaping their obligations. This is our shared struggle,” Linda urged.

Contact Person:
Annisa (087884446640 / [email protected])

Follow TuK INDONESIA’s Lawsuit:
Website: https://www.tuk.or.id/desak-mandiri/
Documentation: https://drive.google.com/drive/folders/1-2E5UgEGngncedYeAm9CtdEbiBegRxO5

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#JanganTanggungSendiri

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