Expert Links Widespread Land Conflicts to Palm Oil, Bank Mandiri Under Court Scrutiny

PRESS RELEASE

Jakarta, April 24, 2025 — The Desak Mandiri lawsuit continued its latest hearing on April 23, 2025, at the South Jakarta District Court, scheduled for hearing expert testimony from TuK INDONESIA as the plaintiff. TuK INDONESIA presented Satyawan Sunito, a rural sociologist and academic who has long studied agrarian conflicts, particularly in the palm oil plantation sector.

In his statement, Satyawan highlighted that agrarian conflicts in Indonesia have been long-standing and complex, with some cases tracing back to colonial times, such as the Pakel case that began in 1925. He emphasized that the massive expansion of the palm oil industry over the past two decades has worsened agrarian inequality and triggered escalating conflicts in various regions.

“The main driver of conflict is the arbitrary clearing of land claimed by local residents. Many companies use location permits as tools to pressure communities, especially outside of Java, where legal certainty over land is very weak,” explained Satyawan before the panel of judges.

Satyawan pointed out the weak legality of palm oil companies in Indonesia. Citing data from PSHA IPB, he stated that of the 3 million hectares of palm oil plantations in Riau, 1.7 million hectares lack the necessary exhaustive administrative documents, and approximately 790,000 hectares have no official land use rights registered (Hak Guna Usaha, HGU).

According to him, companies often abuse their power by imposing core-plasma partnership schemes that disadvantage communities. “People are given no real choice. These partnerships are often unilaterally decided, and the community is always in an inferior position. This is in lieu of the fact that independent cooperatives should be able to serve as an alternative to empower the bargaining position of communities,” he added.

In addition to criticizing the companies, Satyawan also held the government accountable for the ongoing agrarian conflicts. “The state has failed to show up. Regulations may exist, but enforcement and supervision are extremely weak,” he said.

Responding to the hearing, Linda Rosalida, Executive Director of TuK INDONESIA, emphasized that the responsibility for agrarian conflict lies not only with companies, but also with the financial institutions that fund them. “Bank Mandiri and other financial institutions cannot wash their hands of this. They have funneled funds to companies known to be problematic, prolonging the suffering of communities in conflict areas,” Linda stated.

The Desak Mandiri lawsuit was filed by TuK INDONESIA against Bank Mandiri over alleged financial involvement with palm oil companies implicated in human rights violations, land grabbing, and environmental destruction. This hearing marks a crucial moment to expose the link between bank financing and structural conflict in the agrarian sector.

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

Follow the Progress of TuK INDONESIA’s Lawsuit:
Website: https://www.tuk.or.id/desak-mandiri/
Documentation: https://drive.google.com/drive/folders/1QqZkbY-iXeKUYkv0xbhlUf0Z435lx2S

#DesakMandiri
#JanganTanggungSendiri

This post is also available in: Indonesian