Indonesia: Wings-01/Long Beluah

Date Filed
26 Nov 2018
Status
Open
Phase
Compliance
Country
Indonesia

Case Tracker

Eligibility
November 29, 2018-February 19, 2019
Eligibility
Assessment
February 19, 2019-September 28, 2019
Assessment
Dispute Resolution
Dispute Resolution
October 27, 2022-October 30, 2022
Compliance
Appraisal
October 31, 2022-March 28, 2023
Investigation
Status as of March 29, 2023
CURRENT Status
Mediation (DISPUTE RESOLUTION)
October 27, 2022-October 30, 2022

Complaint Overview

Complainant

Community members of Long Lian and Long Beluah

Concerns

Water pollution, waste management, land clearing

Cross-Cutting Issues
Risk Management Resource Efficiency Land Resettlement Land Water Unfulfilled Commitments Project Benefits Access to Information Policy

Project Information

Region
East Asia and Pacific
Institution
IFC
Name & Number
Wings – Beverage & Detergent Expansion (Indonesia) 32208
Company
Wings Group
Sector
Agribusiness & Forestry
Department
Manufacturing, Agribusiness & Services
Category
B
Commitment

US$44 million A-loan and US$44 million syndicated

Synopsis

Project Overview

According to IFC, in 2012 the Wings Group was undertaking a US$176 million project to: (i) expand its beverage product lines under PT Tirta Alam Segar (PT TAS), (ii)  expand fruit-flavored beverage in plastic cups under PT Murni Alam Segar (PT MAS), (iii) commission a green-field coffee mix production under PT Harum Alam Segar (PT HAS), and (iv) increase the capacity of its existing detergent business under PT Sayap Mas Utama (PT SMU). The proposed IFC financing is a loan package of up to US$88 million (US$44 million A-Loan and US$44 million of syndicated B-loan) to those four entities of the Wings Group.

Complaint

In November 2018, CAO received a complaint from the Alliance of Indigenous Peoples of the Archipelago Kalimantan Timur (AMAN Kaltim), a local Civil Society Organization (CSO), on behalf of community members living in Long Beluah and Long Lian, in North Kalimantan, Indonesia. The complaint raised concerns regarding the environmental and social (E&S) impacts of an oil palm plantation operated by PT Inti Selaras Perkasa (PT ISP). PT ISP, together with PT Prima Tunas Kharisma and PT Sentosa Sukses Utama, comprise PT Gawi Makmur Kalimantan (PT Gawi), which is part of the Wings Group. The complaint raised concerns about water pollution, implementation of a government-approved plasma scheme, and land clearing without permission and/or consultation.

Action

In February 2019, CAO found the complaint eligible for further assessment. PT Gawi received IFC financing in 2001–2007 but was not financed by IFC at the time CAO received the complaint. However, CAO accepted the complaint on the basis that IFC’s then client, PT SMU, sourced refined palm oil derivatives (oleochemicals) from refineries that in turn sourced some of their palm oil from PT Gawi mills and plantations.

In May 2019, CAO conducted a field visit to Indonesia to discuss options for addressing the complaint with the relevant parties. During the assessment process, the complainants and the operator of the palm oil plantation expressed their desire to participate in a voluntary, CAO-led dispute resolution process, and the case was transferred to Dispute Resolution in November 2019. The Assessment Report is available in English and Bahasa.

Despite the parties' efforts to resolve the issues raised in the complaint, no agreement was ultimately reached through dispute resolution. Accordingly, CAO completed the dispute resolution process in November 2022 and published a Dispute Resolution Conclusion Report (available in English and Bahasa). At the complainants’ request, CAO transferred the case to the Compliance function for appraisal of IFC’s E&S performance.

In March 2023, CAO finalized its Compliance Appraisal Report (available in English and Bahasa), with a decision to initiate an investigation. CAO’s appraisal found preliminary indications of environmental and social harms related to oil palm plantations owned by the Wings Group in North Kalimantan, including concerns about water pollution, associated health impacts, failure to establish agreed smallholdings, and the clearing of Indigenous Peoples’ forests and land without consultation or compensation. CAO’s appraisal also identified potential IFC non-compliance in its oversight of supply chain risks linked to its investment in PT SMU. Alleged harms to complainants were plausibly linked to these shortcomings, prompting a compliance investigation.

Status

This case is under compliance investigation.   

Status as of March 18, 2026.

Case Documents

  • Assessment Report
    Assessment Report
    Nov 01, 2019
    English
    Assessment Report
    Assessment Report
    Nov 01, 2019
    Bahasa
    Assessment Report
    IFC Response to CAO Assessment Report
    Nov 18, 2019
    English
    IFC Response to CAO Assessment Report
  • Conclusion Report
    Conclusion Report
    Oct 31, 2022
    English
    Conclusion Report
    Conclusion Report
    Oct 31, 2022
    Bahasa
    Conclusion Report
  • Compliance

    Appraisal Report
    Compliance Appraisal Report
    Apr 12, 2023
    English
    Compliance Appraisal Report
    Compliance Appraisal Report
    Apr 12, 2023
    Bahasa
    Compliance Appraisal Report
    Terms of Reference
    Terms of Reference
    Apr 19, 2023
    English
    Terms of Reference
    Terms of Reference
    Apr 19, 2023
    Bahasa
    Terms of Reference
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