Indonesians Challenge German Cement Project Amidst New Supply Chain Laws

In response to Germany’s new supply chain law, Indonesians are challenging a major German cement producer’s plans for a mine and factory in the Kendeng Mountains of Central Java. Legal experts suggest this case may impact European business operations in Asia.

Critics argue that Heidelberg Materials, among the largest cement companies globally, inadequately assessed the potential negative impacts of their proposed limestone mine and cement factory. The concern is that the project could damage a rare karst ecosystem and threaten Indigenous communities’ livelihoods in the region.

If the project proceeds, we could face ecological disaster, poverty, and human rights violations, says Bambang Sutikyo, a complainant.

Katharina Plonsker, a senior sustainability communication manager for Heidelberg Materials, states that affected communities had a chance to express their concerns during the permitting process. These contributions were considered in project planning, and no implementation decision has been made yet.

This claim represents Indonesia’s first attempt to use Germany’s supply chain law, which mandates that large corporations respect human rights throughout their supply chains. Other EU countries are creating similar legislation, learning from Germany’s example, according to Annabell Brüggemann from the European Center for Constitutional and Human Rights in Berlin.

Similar cases are appearing globally, with plaintiffs in Cambodia, Pakistan, the Philippines, and other parts of Indonesia challenging major European firms like Adidas and Shell. This increases financial risks for European companies that have invested in Asia due to less stringent regulations, noted Jameela Joy Reyes from the Grantham Research Institute in London.

The aspect of transboundary harm in these cases is noteworthy and may become more prevalent, Reyes added.

The complaint by 10 individuals, supported by local and international nonprofits such as Inclusive Development and Watch Indonesia, contends that Heidelberg Materials failed to fully evaluate potential harm to Central Java’s Kendeng Mountains, a key natural carbon sink and water reservoir.

Previous mining plans in Kendeng also faced opposition. Gunretno, a plaintiff and member of the Indigenous Samin community, said that environmental destruction impacts everyone globally and emphasizes the need for collective efforts to protect the planet.

Syamsuddin Arief, a lawyer with the Semarang Legal Aid Institute supporting the Samin, hopes the complaint will uphold citizens’ rights to a sustainable life and a healthy environment while ensuring the Kendeng Mountains’ future.

According to the Grantham Research Institute, globally, there were at least 226 lawsuits over climate issues filed in 2024. One example involves Indonesian fisher people from Pari Island filing a complaint against Swiss construction company Holcim over alleged climate change-related damages. Holcim plans to appeal the Swiss court’s decision to hear the case, which would be one of the first climate litigation cases against a Swiss corporation.

Similar arguments were used by nearly 70 survivors of Typhoon Rai in the Philippines in their complaint against Shell, alleging that the company’s emissions exacerbated the disaster. Shell denies legal liability. In Pakistan, about 40 farmers filed a complaint against Heidelberg Materials and RWE, contending these companies’ emissions worsened the 2022 floods.

Reyes from the Grantham Research Institute commented that these cases contribute to the broader discussion on reparations for those in the Global South, whose resources have benefited corporations.

Laurie Parsons of Royal Holloway, University of London, author of “Carbon Colonialism,” observed that Germany’s supply chain law has influenced the global conversation on corporate accountability and the potential for communities to challenge corporate activities.

Annabell Brüggemann of the ECCHR predicts more cases as EU regulations similar to Germany’s are adopted by 2028. The Indonesian case exemplifies the strong movement for corporate accountability and the pressing need for regulation within the global economy.

Reported by Delgado from Bangkok, with contributions from Associated Press writer Sam McNeil in Brussels.

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