Indonesia: OECD Guidelines complaint filed against So. Korean cos for human rights & environmental violations on palm oil plantations

An OECD Guidelines complaint has been filed against the South Korean multinational Posco International, the Korean National Pension Service (NPS), and the Korean export-import bank (KEXIM) for human rights and environmental violations on palm oil plantations in the province of Papua in Indonesia. The complaint alleges that POSCO breached the Guidelines by causing deforestation and loss of biodiversity, by failing to obtain free, prior, and informed consent from the indigenous people, and by infringing the people's right to water. The complaint further alleges that NPS and KEXIM, failed to conduct due diligence to prevent the alleged volations from happening.

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Article
15 December 2019

Unhealed Scars in Papua: POSCO International and Korean public financial providers' violation of OECD Guidelines for Multinational Enterprises in operation of oil palm plantation in Papua, Indonesia

Author: Korean Transnational Corporations WATCH, Yayasan PUSAKA, SKP-KAMe, & WALHI Papua

12 December 2019

POSCO International acquired the palm oil plantation company, PT. BIA in 2011 and became the controlling owner of PT. BIA. With 34,195 hectares of concession area and a CPO mill, in addition to another CPO mill in construction, PT. BIA’s operations have caused adverse impacts on forest, river and the indigenous people for whom the forest and river are a part of their livelihood.

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Throughout PT. BIA’s development of the plantation, FPIC was not implemented. For example, for the acquisition of right to use in district A, PT. BIA failed to identify the concerned people. It has been alleged that the compensation was paid to the wrong party who did not have customary ownership of the land in question. Consent was neither given collectively by the communities in accordance with their customs and traditions, which is against the FPIC. It was also reported that the indigenous people did not fully understand the implication of the transfer of the land use rights for the concession area, which shows that it was not “informed” consent. It is thus clear that PT. BIA did not implement FPIC for the land acquisition during the development of the plantation.

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Following the development of the PT BIA plantations, local residents can no longer drink the water or use it for daily use. It has also been reported that the river has become murky, and deformed and dead fish have been found. ...In addition, local residents have not been provided any information regarding water issues from the company. In this sense, the degradation of the Bian River water quality and the failure to communicate information to the affected people about the water impacts amount to a violation of the right to water.

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+ 日本語 - Hide

Author: 韓国多国籍企業のWATCH, Yayasan PUSAKA, SKP-KAMe, & WALHI Papua

[日本語翻訳記事提供: 経済人コー円卓会議日本委員会]

「パプアの対処されない傷跡」2019年12月12日

POSCO Internationalは、2011年にパーム油プランテーション会社PT. BIAを買収し、PT. BIAの支配的オーナーになりました。34,195ヘクタールのコンセッションエリアとCPO工場、さらに建設中の別のCPO工場を所有するPT BIAの活動は、森林、河川、および森林と河川を生活の一部としている先住民に負の影響を及ぼしています。

PT BIAのプランテーションの開発に関して、FPIC(Free, Prior and Informed Consent)は  実施されませんでした。たとえば、地区Aの使用権を取得する際に、PT BIAは関係者を特定できませんでした。問題となっている土地の慣習的な所有権を持っていない、間違った一派に補償が支払われたとされています。慣習や伝統に基づいたミュニティからの同意は得られていませんでした。これはFPICに反する行為です。先住民族は、コンセッションエリアに対する土地使用権の移転の意味を完全に理解していないことも報告されており、「インフォームドコンセント」ではなかったことを示しています。このように、PT BIAが、プランテーションの開発中の土地取得に関して、FPICを実施していなかったのは明らかです。

PT BIAプランテーションの開発後、地域住民は水を飲んだり、日常的に使用することはできなくなりました。また、川が濁っており、変形した魚や死んだ魚が見つかったことが報告されています。 ...さらに、地元住民には会社から水問題に関する情報が提供されていません。この意味で、Bian Riverの水質の悪化と、水への影響に関して影響を受けた人々への情報伝達の欠如は、水の権利の侵害に相当します。

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Article
13 December 2019

Specific Instance to Korean National Contact Point of Korea

Author: KTNC WATCH, PUSAKA, SKP-KAMe, & WALHI Papua

...POSCO International by the activities of its subsidiary, PT. Bio Inti Agrindo (PT. BIA) in Papua, Indonesia, has been producing palm oil and selling it in the global market. Through the operation of oil palm plantation, it caused the adverse impacts such as deforestation and infringing the rights of indigenous people, but failed to take remediation or preventive measures to address the adverse impacts. Meanwhile, public institutions are also directly linked to PT. BIA’s palm oil business through their financial services. The Export-Import Bank of Korea (KEXIM) has provided loans for PT. BIA’s operations and the National Pension Service (NPS) holds more than five percent share in POSCO International. KEXIM and NPS are directly linked to the adverse impacts by financial services provided to POSCO International, but did not carry out human rights due diligence.

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Consent was neither given collectively by the communities in accordance with their customs and traditions, which is against the FPIC. It was also reported that the indigenous people did not fully understand the implication of the transfer of the land use rights for the concession area, which shows that it was not “informed” consent.

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communities. Following the development of the PT BIA plantations, local residents can no longer drink the water or use it for daily use. It has also been reported that the river has become murky, and deformed and dead fish have been found.

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Article
12 December 2019

New OECD Guidelines case alleges POSCO and financiers caused adverse human rights and environmental impacts on palm oil plantations in Papua New Guinea

Author: OECD Watch

13 December 2019

...[A] new OECD Guidelines complaint has been filed against the South Korean multinational POSCO INTERNATIONAL, the Korean National Pension Service (NPS), and the Korean export-import bank (KEXIM) related to abuses of human rights and the environment on palm oil plantations in Papua New Guinea. The complaint argues that POSCO breached the Guidelines by causing deforestation and loss of biodiversity, lack of FPIC and infringement on the right to water for its operation of the palm oil plantation in Papua. The complaint further argues that POSCO investors, NPS and KEXIM, failed to conduct due diligence to prevent these impacts from happening.

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Article
12 December 2019

NGOs from Korea and Indonesia file OECD complaint against POSCO International for causing palm oil abuses and National Pension Service and the Export-Import Bank of Korea for financing the abuses

Author: Korean Transnational Corporations WATCH, Yayasan PUSAKA, SKP-KAMe, & WALHI Papua

12 December 2019

...Korean Transnational Corporations Watch (KTNC Watch), Yayasan Pusaka (Indonesia), WALHI Papua (Indonesia), and SKP KAMe (Indonesia), filed a complaint at Korea’s National Contact Point (NCP) for the OECD (Organization for Economic Cooperation and Development) against POSCO International and two Korean public financial institutions, the Korean National Pension Service (NPS) and the Export-Import Bank of Korea (KEXIM).

The complaint concerns POSCO International, the controlling owner, and the NPS and KEXIM, the financers of POSCO International. The complaint is related to the adverse impacts caused by the operation of the palm oil company PT. Bio Inti Agrindo (PT. BIA), a subsidiary of POSCO International in Papua, Indonesia. The adverse impacts include large-scale deforestation of tropical rainforest and loss of biodiversity; failure to implement Free, Prior and Informed Consent (FPIC) with the customary owners of the land in the process of developing the plantation; and violation of local residents’ right to water by degrading the Bian River water quality.

...Due to the degradation of the water quality of the Bian River, local residents can no longer use the water from the river for their daily activities or drinking. However, no measures were taken to ensure that the right to water of the local residents is protected.

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The complainants...requested that POSCO International implement FPIC in their operation and ensure the right to water of the local communities relying on the Bian River.

They also request that the NPS engage with POSCO International to use their leverage and consider deforestation and infringement of the rights of indigenous people in their policies for socially responsible investment. The complainants request KEXIM to adopt policies for reviewing environmental and social risks...and refrain from providing further loans to support PT. BIA’s operations that are causing adverse impacts.

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