A group of Indonesians is using Germany's supply chain law to challenge a proposed limestone mine and cement factory by Heidelberg Materials, one of the world's largest cement producers, in Central Java's Kendeng Mountains. Critics argue the project could cause ecological damage, harm Indigenous livelihoods, and violate human rights.
Complainants allege that Heidelberg Materials, through its local subsidiary PT Indocement Tunggal Prakarsa, failed to adequately assess and mitigate potential harms. Bambang Sutikyo, one of the complainants, stated that the project's implementation could lead to ecological catastrophe, impoverishment, and human rights violations.
Heidelberg Materials stated that affected communities had opportunities to voice concerns during the permitting process and that feedback was incorporated into project planning. The company also noted that no decision on the project's implementation has been made.
This complaint marks Indonesia's first use of Germany's supply chain law, which aims to ensure human rights are respected across corporate supply chains. Experts suggest that such cases are significant as other European Union nations prepare to enact similar regulations. Annabell Brüggemann of the European Center for Constitutional and Human Rights noted that these complaints are "quite significant."
Similar legal actions are underway against other European companies in Asia, including Adidas and Shell. Jameela Joy Reyes of the Grantham Research Institute on Climate Change and the Environment indicated that these cases, particularly those involving transboundary harm, may become more common and increase financial risks for European firms that have historically benefited from less stringent regulations in the region.
The complaint, supported by local and international non-profits, focuses on the potential impact on the Kendeng Mountains, described as a major natural carbon sink and underground reservoir. The Samin community, an Indigenous agricultural group, faces potential land loss, according to plaintiff Gunretno.
Globally, climate-related lawsuits are on the rise, with at least 226 cases filed in 2024, according to the Grantham Research Institute. Previous cases include a complaint by Indonesian fisherfolk against Swiss company Holcim and actions against Shell and Heidelberg Materials in the Philippines and Pakistan, respectively, related to alleged climate change impacts.
These legal challenges are part of a broader global conversation about corporate accountability and reparations for communities in the Global South, whose resources have been exploited. Laurie Parsons, author of "Carbon Colonialism," suggested that Germany's supply chain law is shifting mindsets for companies and governments regarding corporate behavior.
With EU-wide regulations anticipated by 2028, legal actions against corporations are expected to increase, underscoring the growing demand for regulation in the globalized economy, according to Brüggemann.