#DesakMandiri Lawsuit Hearing: Bank Mandiri and Astra Agro Lestari Yet to Submit Evidence

PRESS RELEASE

Jakarta, March 6, 2025 – The #DesakMandiri civil lawsuit against PT Bank Mandiri (Persero) Tbk continues at the South Jakarta District Court. The trial reached a critical phase on March 5, 2025, overseeing the submission of evidence by all parties concerned. Although TuK INDONESIA had their evidence documents prepared, the defendants—Bank Mandiri, PT Astra Agro Lestari, and PT Agro Nusa Abadi—turned up with empty hands.

“We have reached the evidence submission stage, which is a crucial step in uncovering the facts in court. However, Bank Mandiri and the companies we are suing do not seem to share the same commitment to expediting the legal process. This strongly indicates that they are not serious about addressing the justice demands raised by the affected communities,” said Linda Rosalina, Executive Director of TuK INDONESIA.

This lawsuit seeks to hold Bank Mandiri accountable for financing companies allegedly engaged in illegal operations, environmental destruction, land grabbing, and human rights violations in the palm oil plantation sector. Previously, the trial went through mediation, but no agreement was reached. Following the mediation setback, the case proceeded to the substantive hearing phase, during which the defendants submitted their responses, followed by TuK INDONESIA’s reply and the defendants’ rejoinder. All these proceedings were conducted through the e-court system. In their defense, Bank Mandiri, Astra Agro Lestari, and Agro Nusa Abadi denied the field evidence presented by TuK INDONESIA, including the claim of failing to uphold due diligence principles in their business practices.

The principle of prudence in banking is a fundamental aspect requiring banks to ensure that their financing does not contribute to harmful business practices affecting society and the environment. This principle is outlined in various international regulations, such as the OECD Guidelines for Multinational Enterprises and the Environmental and Social Risk Management (ESRM) standards adopted by global financial institutions. In the national legal context, Indonesia’s Financial Services Authority (OJK) mandates banks to apply prudence in every financing decision, including conducting due diligence on the social and environmental impacts of the projects they fund.

A similar case occurred in the lawsuit against Royal Dutch Shell in the Netherlands, where the court ruled that the company was responsible for the environmental impact of its business activities. This decision set a precedent that financial institutions and corporations can be held accountable if they fail to comprehensively assess social and environmental risks before funding a project.

TuK INDONESIA’s lawsuit is not a simple case. The process had been drawn out due to various legal and administrative challenges. Nevertheless, TuK INDONESIA remains committed to pursuing this case until a ruling is made in favor of the affected communities and the environment, which has suffered from irresponsible business practices.

“We are not only seeking legal accountability from Bank Mandiri but also aiming to set an important precedent for the financial industry. Banks cannot turn a blind eye to the impacts of their financing decisions. If the banking sector continues to ignore social and environmental consequences, ecological crises and social inequality will only worsen,” Linda added.

TuK INDONESIA urges Bank Mandiri and the co-defendants to immediately submit their evidence and refrain from stalling the legal process. The public deserves justice, and financial institutions must be held accountable for the flow of funds that enable corporate environmental destruction and harm communities.

Contact Information:

• Annisa (Phone: +62 878-8444-6640 / Email: [email protected])
• Follow the Progress of TuK INDONESIA’s Lawsuit:
  • Website: #DesakMandiri
  • Documentation: Google Drive

#DesakMandiri
#JanganTanggungSendiri

This post is also available in: Indonesian