Indonesia: Wings-01/Long Beluah

Date Filed
26 Nov 2018
Status
Open
Phase
Compliance
Country
Indonesia

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Dispute Resolution
Compliance
Appraisal
October 31, 2022-March 28, 2023
Investigation
Status as of March 29, 2023
CURRENT Status
Investigation (COMPLIANCE)
Status as of March 29, 2023

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 & the Pacific
Institution
IFC
Name & Number
Wings – Beverage & Detergent Expansion (Indonesia) 32208
Company
Wings Group
Sector
Agribusiness
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 AMAN Kaltim (Alliance of Indigenous Peoples of the Archipelago Kalimantan Timur), a local NGO, on behalf of community members living in Long Beluah and Long Lian, North Kalimantan, Indonesia. The complaint raises concerns regarding the environmental and social 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 Gawi Plantation, which is part of the Wings Group. The complaint raises concerns about water pollution, implementation of a government-approved plasma scheme, and land clearing without permission and/or consultation.

Action

CAO found the complaint eligible for further assessment in February 2019. 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 dispute resolution process.

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 in English and Bahasa (available in the documents section below). At the complainants’ request, CAO transferred the case to the Compliance function for appraisal of IFC’s environmental and social performance related to its investment in the Wings Group. 

The compliance appraisal process has been completed, with the corresponding appraisal report released in English and Bahasa in the "Case Documents" section below, published on April 12, 2023. 

 

Status

CAO concluded the compliance appraisal for this case on March 28, 2023. This case is now under compliance investigation.   

Status as of March 30, 2023.

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
  • Mailchimp Survey

     

    We Value Your Feedback

    Thank you for visiting CAO’s new website. Help us improve your experience by taking our short survey.

    Give Feedback No thanks