Residents in Indonesia are challenging a major German cement producer under a unique supply chain law. This action could influence European businesses operating in Asia. Heidelberg Materials, among the largest cement companies globally, aims to develop a limestone mine and cement factory in Central Java’s Kendeng Mountains. Critics argue the company failed to adequately assess potential damage to the ecosystem and the livelihoods of Indigenous people.
Bambang Sutikyo, one of the opponents, stated, “If the project is implemented, we face ecological catastrophe and human rights violations.” In response, Katharina Plonsker, Heidelberg’s manager for sustainability communication, remarked that the company provided avenues for community feedback during the permitting process. She added that no final decision has been made.
This complaint is Indonesia’s first to invoke Germany’s supply chain law. This law mandates respect for human rights in company supply chains. Similar regulations are under consideration in other European nations. Annabell Brüggemann from the European Center for Constitutional and Human Rights noted these complaints’ significance, as nations draft their laws.
Across Asia, similar legal challenges are occurring. Companies like Adidas and Shell face lawsuits in countries such as Cambodia, Pakistan, and the Philippines. These cases add financial risks for European firms with investments in Asia, according to Jameela Joy Reyes of the Grantham Research Institute.
“The transboundary harm element of these cases is quite interesting, and we might be seeing that more in the future,”Reyes noted.
The legal complaint against Heidelberg seeks accountability over environmental concerns in Central Java. Other projects in Kendeng have also faced opposition. Gunretno, a plaintiff from the Samin community, expressed apprehension about land loss and environmental damage. Syamsuddin Arief, a lawyer supporting the plaintiffs, hopes for upholding citizens’ rights to a sustainable environment.
Rising Climate Cases in Asia
Globally, climate-related lawsuits are increasing. The Grantham Research Institute reports at least 226 such lawsuits filed in 2024. In Indonesia, fishers from Pari Island targeted the Swiss construction company Holcim, citing emissions threatening their livelihood. Holcim intends to appeal.
In the Philippines, typhoon survivors have filed a case against Shell, blaming emissions for exacerbating the 2021 disaster. Similarly, farmers in Pakistan have accused Heidelberg and RWE of worsening floods through emissions.
Reyes highlighted the broader implications of such cases, emphasizing potential reparations for Global South communities affected by corporate activities.
Impact on EU Laws
Germany’s law shifted perspectives and mechanisms for opposing corporate actions, according to Laurie Parsons of the Royal Holloway, University of London. Future EU regulations might follow this precedent, as explained by Brüggemann from ECCHR. The situation in Indonesia underscores the movement for corporate accountability and the necessity for global economic regulations.
Delgado reported from Bangkok. Associated Press writer Sam McNeil in Brussels contributed to this report. The Associated Press receives financial support from private foundations for climate and environmental coverage but maintains full editorial independence.