Indonesian Locals Challenge German Cement Company’s Plans Using Supply Chain Law

Indonesian communities are challenging a major German cement producer’s plans to construct a mine and factory. They cite a supply chain law aimed at ensuring European businesses respect human rights in their operations abroad. Heidelberg Materials, one of the largest cement companies globally, faces criticism for not adequately assessing the potential environmental and social impacts of its limestone mine and cement factory project in Central Java’s Kendeng Mountains.

Concerns Over Environmental and Indigenous Rights

Critics argue that the project could damage a rare karst ecosystem and affect the livelihoods of Indigenous communities in the area. Bambang Sutikyo, one of the complainants, expressed concern over potential ecological catastrophes and violations of human rights if the project proceeds.

Katharina Plonsker, Heidelberg Materials’ senior sustainability communication manager, stated that local communities were engaged during the permitting process. Feedback from these discussions was considered in project planning, and as of now, no decision about the project’s implementation has been made.

Legal Challenge Under Germany’s Supply Chain Law

The complaint against Heidelberg Materials and its subsidiary, PT Indocement Tunggal Prakarsa, marks Indonesia’s first use of Germany’s supply chain law. The law demands that large companies respect human rights across their supply chains. Annabell Brüggemann from the European Center for Constitutional and Human Rights noted the significance of such complaints, as other EU nations consider similar regulations.

Wider Implications and Similar Cases

The Heidelberg case aligns with ongoing legal actions in Cambodia, Pakistan, the Philippines, and elsewhere involving major European companies like Adidas and Shell. These cases highlight the financial risks of investing in regions with less stringent regulations.

Jameela Joy Reyes from the Grantham Research Institute on Climate Change and the Environment highlighted the emerging interest in transboundary harm in these cases, suggesting an increasing trend.

Local Resistance and Environmental Responsibility

Backed by local and international non-profits, ten complainants argue that Heidelberg Materials inadequately assessed the potential harm to Kendeng Mountains, a crucial carbon sink and reservoir. Local resistance against similar mining plans in Kendeng is longstanding.

Gunretno, a plaintiff and member of the Indigenous Samin community, stresses the global responsibility to protect the environment. Lawyer Syamsuddin Arief from the Semarang Legal Aid Institute supports the complaint, aiming to uphold citizens’ rights to a sustainable environment.

Rising Climate Litigation in Asia

Globally, at least 226 climate-related lawsuits were filed in 2024, as reported by the Grantham Research Institute. In Indonesia, fisher people from Pari Island filed a complaint against Swiss company Holcim, contesting its emissions’ impact on their livelihoods. Holcim intends to appeal a Swiss court’s decision to hear the case, marking a rare instance of climate litigation against a Swiss corporation. Similarly, typhoon survivors in the Philippines have taken legal action against Shell, while Pakistani farmers have sued Heidelberg Materials and RWE for worsening climate change-related floods.

EU Law and Corporate Responsibility

Laurie Parsons from the Royal Holloway, University of London, pointed out that Germany’s supply chain law has influenced how affected communities can challenge corporate activities. This legal framework has prompted a shift in corporate and governmental attitudes regarding corporate accountability.

With similar regulations expected across the EU by 2028, Brüggemann highlighted the inevitable increase in cases like the Indonesian cement project. These developments underscore the pressing demand for regulating the globalized economy and strengthening corporate accountability.

**AP’s Collaboration and Standards**:
Delgado reported from Bangkok, with contributions from Sam McNeil in Brussels. The Associated Press receives financial support for climate and environmental coverage from several private foundations, ensuring editorial independence. For more information on AP’s standards, support, and coverage areas, visit AP.org.