- Date filed
- 23 May 2017
- Keywords
- Countries of harm
Allegations
On 23 May 2017, a complaint was filed to the Japanese NCP against Marubeni Corporation and JERA Co., Inc. by Friends of the Earth Japan and Wahana Lingkungan Hidup Indonesia (WAHLI), representing local communities in Indonesia, for adverse impacts linked to the Cirebon coal-fired power project in West Java. The complainants allege that the companies, involved in a joint venture connected to the power project, 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 work underway to begin building Unit 2 of the Cirebon coal-fired power plant. The project is expected to be operational in 2021 and 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 been informed 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
Outcome
On 24 June 2017, the Japanese NCP officially accepted the complaint.
On 2 February 2018, the Japanese NCP accepted the complaint for further consideration. The NCP did not publish its initial assessment.
The long duration between the complaint being filed (May 2017), the NCP’s official acceptance of the complaint (June 2017), and the NCP’s initial assessment (February 2018) was a significant issue for the complainants. This complaint raised issues with the legality of the environmental permit for the project, but before the NCP published its initial assessment a new permit had been issued (in July 2017) and the project financiers had started their loan disbursement (in November 2017). Therefore many of the issues the complainants sought to address through their complaint (including that the project stop before the final court decision was made) had occurred before the assessment was even published.
The NCP offered its good offices to the parties. In December 2018, the companies replied to the NCP, stating that they were unable to answer the NCP’s offer of good offices due to ongoing Indonesian proceedings involving the complainants. In March 2019, the companies notified the NCP of the finalisation of proceedings in their favour; however, they continued to refuse to accept the NCP’s offer until the complainants confirmed that the proceedings had been terminated. In August 2019, the complainants informed the NCP that they had filed a request for a retrial of the Indonesian case. In December 2019, the Japanese NCP met separately with the parties about the issues in the NCP complaint and proceedings in Indonesia. Ultimately, the companies refused to engage in the NCP process unless and until the complainants terminated all legal proceedings in Indonesia against them.
In May 2021, the NCP asked the complainant whether a timeline should be set for the companies’ engagement in the NCP process. The complainants replied that they would withhold their position regarding acceptance or rejection of good offices until local investigations related to corruption at the power plant were completed. The NCP held another in-person meeting with the complainants in May 2023.
On 19 September 2023, the Japanese NCP notified all parties that it considered them unwilling to engage in the NCP process and if no progress was made in the following two months, the NCP would terminate the complaint process and issue its final statement. As no objection was received from any of the parties, the NCP published its final statement on 13 February 2024. The NCP recommended “that the Enterprises Involved continue to ensure the observance of the Guidelines, and to engage with the local community and residents, including the Complainants.”
The complainants note that the NCP’s role is more than just to offer its good offices (mediation) for dialogue. The NCP should also proactively review companies’ compliance with the OECD Guidelines and make clear recommendations on the implementation of the Guidelines by companies.
More details
- Defendant
- Company in violation
- Other companies involved
- Complainants
- Affected people
- Date rejected / concluded
- 13 February 2024