Indonesia: Wings-01/Long Beluah
Case Tracker
Complaint Overview
Community members of Long Lian and Long Beluah
Water pollution, waste management, land clearing
Project Information
US$44 million A-loan and US$44 million syndicated
Synopsis
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.
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.
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.
This case is under compliance investigation.
Status as of March 18, 2026.