Factsheet or this fact sheet is based on a research report compiled by the Indonesian ResponsiBank Coalition entitled “Violations of Citizens’ Rights and Bank Responsibilities in Financing the Cement Industry in the North Kendeng Mountains”. This fact sheet describes the struggle of the Sedulur Sikep community in the North Kendeng Mountains who oppose the cement industry, focusing on the environmental and social impacts it has caused. For more than a decade, the Kendeng Mountains Community Care Network (JMPPK) has been fighting against environmental degradation that threatens their livelihoods and spiritual beliefs in the Kendeng Mountains. Although the Supreme Court revoked PT Semen Indonesia’s permit in 2016 and the government approved a Strategic Environmental Assessment (KLHS), new permits have continued to be issued, creating risks of disaster and social conflict.
The fact sheet also highlights the role of banks, such as Bank Mandiri and Deutsche Bank, in financing the human rights-abusing and environmentally damaging cement industry. Despite commitments to sustainable financing, many banks do not have adequate policies in place to regulate responsible financing. International frameworks, such as the UN Guiding Principles on Business and Human Rights, are expected to be integrated, but many challenges remain in their implementation.
The involvement of HeidelbergCement and PT Indocement Tunggal Perkasa in financing cement projects shows significant impacts on local communities and the environment. Policy assessments of these banks reveal shortcomings in addressing environmental and human rights risks, which have the potential to worsen social and environmental conditions in the region. Thus, it is important to encourage more responsible financing practices to safeguard community rights and environmental sustainability.
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