Court Issues Dismissal (NO) on #DesakMandiri Lawsuit, TuK INDONESIA Questions Court’s Failure to Address Core Issues

Jakarta, 28 July 2025 — The South Jakarta District Court has declared the Desak Mandiri lawsuit filed by TuK INDONESIA against Bank Mandiri inadmissible (Niet Ontvankelijke Verklaard/NO) on formal grounds, citing “lack of parties.” TuK INDONESIA views this verdict, delivered on 17 July 2025, as evidence of the court’s failure to address and deliberate on the substance of the case, despite full proceedings reaching the evidence and expert testimony stages.

Filed in November 2024, the lawsuit sought to hold Bank Mandiri accountable for financing PT Agro Nusa Abadi (ANA), a subsidiary of Astra Agro Lestari (AAL), which has operated without a land use title (Hak Guna Usaha/HGU) in Central Sulawesi since 2006. The declaratory lawsuit asked the court to affirm that financing companies lacking legal permits constitutes an unlawful act under the Banking Law, violating principles of trust, prudence, and customer due diligence, as well as contradicting sustainability principles.

However, after months of hearings involving experts and extensive evidence, the panel of judges dismissed the case purely on procedural grounds, accepting the co-defendant’s objection, without assessing the substantive facts and evidence presented. TuK INDONESIA sees this as a deliberate avoidance of the lawsuit’s substance and a failure of the judiciary to uphold its function of enforcing the law and protecting customers.

“We had valid legal standing and presented evidence of financing to entities operating without legal title, social conflicts, and expert testimony. But all of this was simply ignored. The lawsuit was not rejected because the parties or claims were wrong, but because the judges never truly read or considered the content of the case,” said Linda Rosalina, Executive Director of TuK INDONESIA.

The trial process was further marred by a change in presiding judge near the end of proceedings, raising additional concerns about the panel’s ability to fully comprehend the case. TuK INDONESIA questions the court’s commitment to handling public interest litigation concerning financial sector accountability and its social impacts.

Iki Dulangin, a representative of TuK INDONESIA’s legal team, criticized the NO ruling as a reflection of poor judicial quality and a disregard for access to justice. According to Iki, the lawsuit was filed by Bank Mandiri customers concerned about the banking sector’s social and environmental responsibilities, particularly in sustainable finance practices.

“This lawsuit was based on four core elements of unlawful acts (PMH): an unlawful act, fault, damage, and causation. We clearly explained and proved all these elements during trial,” Iki stated. He further emphasized that judges are obligated to examine the substance of a case rather than dismissing it on incorrect procedural grounds. “Had the judges properly examined the substance, our lawsuit should have been accepted and granted. Instead, it was dismissed without touching the core issues,” Iki concluded.¹The judges deemed the lawsuit inadmissible for not including parties such as Eco Nusantara, the Ministry of Agrarian and Spatial Planning/National Land Agency (ATR/BPN), the Ministry of Environment and Forestry (KLHK), and the Financial Services Authority (OJK) as defendants. However, according to Iki, Supreme Court jurisprudence No. 305 K/Sip/197 establishes that plaintiffs are free to determine which parties to sue, as long as they are directly related to the harm or act as an obstacle to resolving the case. The parties mentioned by the judges were neither perpetrators of unlawful acts nor opposed to the substance of the lawsuit, and therefore were not required to be included as defendants.

International support also came from organizations such as Forests & Finance (F&F), which advocates for accountability in forestry and agribusiness financing. “The financial system is the backbone of our economy, but it must change to better serve people and the planet. That change requires involvement from all elements of society, and we will continue to push for it,” said Merel van der Mark from Forests & Finance.

She added that change cannot happen without pressure from active civil society. Without public oversight, violations such as financing companies operating without proper permits will continue unchecked. “We can only achieve the goals of the Paris Agreement and the Global Biodiversity Framework if financial institutions play their part and align their financing with these objectives. Civil society plays a key role in ensuring that accountability.”

TuK INDONESIA announced it would file an appeal and continue the #DesakMandiri campaign.
“If the courtrooms shut their doors on the substance of our case, we will open it up to the public. We will not stop until Bank Mandiri’s responsibility for this conflict is openly questioned,” Linda asserted.

For more information on the Desak Mandiri lawsuit, please visit tuk.or.id/desak-mandiri or contact TuK INDONESIA at [email protected] or +62 878 8444 6640.

This post is also available in: Indonesian