Indonesia: Wings-01/Long Beluah

Date Filed
26 Nov 2018
Status
Open
Phase
Dispute Resolution (DR)
Country
Indonesia

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Compliance
CURRENT Status
Mediation (DISPUTE RESOLUTION)

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

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 related to water pollution, implementation of a government-approved plasma scheme, and land clearing without permission and/or consultation.

CAO Action

CAO found the complaint eligible for further assessment in February 2019 and 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. The dispute resolution process is ongoing. 

Status

The dispute resolution process between the Company and the Long Beluah community is ongoing. However, the dispute resolution process between the Company and the Long Lian community is currently on hold as CAO has not been able to communicate with Long Lian representatives due to connectivity issues and Covid-related travel restrictions. The dispute resolution process with Long Lian will continue when the travel restrictions are lifted.

Status as of September 21, 2020

Note: A CAO assessment does not entail a judgment on the merits of complaints.  Rather, the aim is to listen to people's concerns, understand the different perspectives, and determine what options are available to address the complaint through CAO's Dispute Resolution and Compliance functions.

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    CAO Assessment Report - Indonesia - Wings-01
    Nov 01, 2019
    English
    CAO Assessment Report - Indonesia - Wings-01
    CAO Assessment Report - Indonesia - Wings-01
    Nov 01, 2019
    Bahasa
    CAO Assessment Report - Indonesia - Wings-01
    IFC Response to CAO Assessment Report - Indonesia - Wings 01
    Nov 18, 2019
    English
    IFC Response to CAO Assessment Report - Indonesia - Wings 01