On 23 May 2017, a complaint was filed to the Japanese NCP against Marubeni Corporation and JERA Corporation by Friends of the Earth Japan and Wahana Lingkungan Hidup Indonesia for their involvement in Unit 2 of the Cirebon coal-fired power project in West Java, Indonesia. The complainants allege that the companies (both Japanese) are in breach of the OECD Guidelines due to their failure to obey domestic laws and refrain from seeking or accepting exemptions not contemplated in the statutory or regulatory framework.
The complaint states that since the construction of Unit 1 of the Cirebon coal-fired power project in Indonesia, local communities have experienced significant damage to their livelihoods and incomes. Despite community protests and the impacts already suffered, there is now work underway to begin building Unit 2 of the Cirebon coal-fired power plant. The project is expected to be operational in 2021 and is expected to further damage the livelihoods of the fishermen in the area, who have yet to receive any livelihood restoration from Unit 1 of the project and have not heard of any plans related to Unit 2. The complainants allege illegalities around the project’s environmental permit and the designated spatial plan.
The complainants are asking the following from the Japanese NCP:
- That the companies adhere to the OECD Guidelines.
- That all project related activities for Unit 2 stop until a final court decision is made to ensure the project is compliant with laws and regulations.
- That the company refrains from seeking or accepting exemptions.
- That the company encourages West Java provincial government to withdraw its appeal to the high court or the Supreme Court, and make efforts to comply with the Indonesian laws and regulations.
Relevant OECD Guidelines
On 2 February 2018, the Japanese NCP accepted the complaint for further consideration.