This report is the result of research that looks in more depth at the mining practices of Natural Resources (SDA) in the North Kendeng Mountains Region in Rembang Regency and plans to build a cement factory in Pati Regency, Central Java Province. The research seeks to identify the impacts on the community as well as the flow of financial financing for a cement factory in the North Kendeng Mountains.
The operation of the cement industry in Rembang Regency has had a negative impact on the environment, social, economy and culture of the community, including indigenous peoples. Meanwhile, the plan to build a cement factory in Pati Regency, in the process of building a factory, also involved human rights violations.
The mining and cement industry in the mountains of North Kendeng causes various negative impacts on the environment and health, social, culture and community values, as well as the economy of local residents. In Rembang, the mining of limestone and limestone for cement raw materials and the cement production process has had a direct impact on reduced land and income for residents, who are mostly farmers. Mining activities and cement production in factories cause air pollution which is detrimental to the economy and the health of residents. Dust generated by mines and factories covers crop membranes, impairing the quality of growth of agricultural crops and fodder.
Environmental impacts in the form of pollution are likely to occur in Pati, based on the similarity of the main causes of limestone mining activities and the cement production process. Not to mention, there are social impacts caused by mining and the cement industry, both in Rembang and in Pati in the form of a breakdown in social cohesion. These impacts were mainly triggered by the failure of the company to properly involve community participation in planning the development of the cement industry, resulting in rejection from the community.
Cement business activities in the North Kendeng Mountains are inseparable from bank support through the financing they provide. In fact, in writing, financial service institutions already have commitments and policies to encourage responsible business practices by paying attention to environmental and social aspects, including human rights. Thus, the support provided by the bank is subject to criticism as well as evaluation because it is contrary to its commitments and policies.
As a financial support, the financial services sector (SJK) is also responsible for environmental, social and cultural damage to the people in the North Kendeng Mountains. During the period 2018 – 2022, the flow of financing received came not only from multinational banks but also from a number of national banks which had financed the mining activities of the cement industry in the region. Who are the actors who play a role in providing funding for the operation of cement factories in the North Kendeng Mountains, find the answers in the following report, enjoy reading!
