#DesakMandiri Mediation Deadlocked: Bank Mandiri Continues to Deny Allegations

Press Release

Jakarta, December 18, 2024 – The mediation session for the civil lawsuit filed by TuK INDONESIA against Bank Mandiri, which was held on December 17, 2024, at the South Jakarta District Court, concluded in a deadlock. The session failed to produce an agreement as Bank Mandiri continued to deny allegations, while TuK INDONESIA asserted that the defendant has yet to demonstrate good faith in acknowledging the impacts of its financing policies.

The mediation, which lasted only ten minutes, was attended by Bank Mandiri as the defendant, Astra Agro Lestari (AAL) and PT Agro Nusa Abadi (PT ANA) as co-defendants, and TuK INDONESIA as the plaintiff. Linda Rosalina, Executive Director of TuK INDONESIA, emphasized that an apology from Bank Mandiri would be a crucial initial step in demonstrating moral responsibility and a genuine commitment to reform. “As one of Indonesia’s largest banks, Bank Mandiri has a significant responsibility to ensure its financing does not harm communities or the environment. We demand that they acknowledge their mistakes and make a public apology to the people affected by their financing policies,” said Linda.

The case sprouted from allegations of Bank Mandiri’s involvement in financing PT ANA, a subsidiary of AAL, which has been operating without a legal plantation business permit (HGU). Operating without an HGU has led to social conflicts, violations of indigenous community rights, land disputes, and deforestation in North Morowali. Linda pointed out that as a prominent financial institution claiming to be a “First Mover on Sustainable Banking,” Bank Mandiri should have conducted thorough due diligence before providing financing.

Mediation is a phase in civil litigation aimed at resolving disputes amicably under the guidance of a mediator judge. Both parties are expected to reach a settlement without proceeding to court trials. However, as of now, the mediation has failed to reach any consensus, as Bank Mandiri continues to deny the accusations.

According to Linda, due diligence should not be merely an administrative formality but a fundamental step to ensure that banks do not support illegal practices or cause harm to communities and the environment. “When Bank Mandiri fails to carry out this process properly, they are not only neglecting their moral and social responsibilities but also violating the sustainability principles they claim to uphold,” she added.

This lawsuit aims not only to demand legal accountability from Bank Mandiri but also to push for greater transparency and reform in banking sector financing policies in Indonesia. TuK INDONESIA hopes that this case serves as a vivid reminder for other banks to prioritize due diligence in their financing decisions.

The mediator has requested TuK INDONESIA to submit a mediation proposal by January 7, 2025, as a follow-up step. “We will continue to fight for justice for the affected communities and ensure that financial institutions like Bank Mandiri are held accountable for the social and environmental impacts of their financing policies,” Linda concluded.

Contact Information:
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/1TNdNt2KNVCNYU9iXUSN95TWVg8vT0T4R

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#JanganTanggungSendiri

This post is also available in: Indonesian