TuK INDONESIA Appeals To Supreme Court: Bank Mandiri Urged To Answer For Financing Linked to Social Conflict

Jakarta, 28 October 2025 — Transformasi untuk Keadilan Indonesia (TuK INDONESIA) officially filed an appeal (cassation) to the Supreme Court of the Republic of Indonesia on 27 October 2025. This step is a follow-up to the Jakarta High Court’s decision, a move which TuK INDONESIA viewed as a failure of the judicial system in delivering justice. The high court’s rule was deemed to have damaged public trust, while also exposing the weakness of Indonesia’s judicial system in addressing social and environmental issues stemming specifically from bank financing practices.

The appeal represents a continuation of TuK INDONESIA’s lawsuit against Bank Mandiri at the South Jakarta District Court, which challenged the bank’s financing of PT Astra Agro Lestari and its subsidiary PT Agro Nusa Abadi (ANA)—two palm oil companies found to be operating without land use rights (HGU) in Central Sulawesi, and are responsible for prolonged social conflicts with local communities. For TuK INDONESIA, this case is not merely about a business relationship between a bank and its client, but about the broader responsibility of financial institutions for the social and environmental consequences of every rupiah credited.

“We deeply regret the appellate court’s ruling, which undermines customers and the public, and blatantly disregards the principles of social justice and environmental responsibility,” said Linda Rosalina, Executive Director of TuK INDONESIA. “Judges should not confine themselves to contractual relations, but must also uphold the principles of sustainable finance that are already recognized in national regulations.”

In its appeal memorandum, TuK INDONESIA argues that the appellate judges erred in interpreting the legal relationship between the plaintiff and the bank. According to TuK, a bank’s responsibility extends far beyond the mere safekeeping of customer deposits. Under Indonesia’s Banking Law and the principle of prudence, banks are required to ensure that their financing activities do not cause harm to society or the environment. Moreover, Bank Mandiri already has its own Environmental, Social, and Governance (ESG) commitments and policies, which should guide all its business decisions.

TuK INDONESIA also emphasized that the lawsuit rests on a solid legal basis, as there exists a causal relationship between the bank’s financing and the harm suffered by affected communities. This is consistent with the Supreme Court Jurisprudence No. 2831 K/Pdt/1996, which establishes that legal standing in a tort lawsuit (perbuatan melawan hukum) does not require a direct contractual relationship between parties, but rather a causal link between the unlawful act and the resulting damage. In this context, Bank Mandiri’s financing of a company—proven to have violated the law—constitutes negligence and a breach of the prudential principle.

According to TuK INDONESIA, the appellate ruling’s failure to recognize these principles reflects the dubious vision of Indonesia’s judiciary in responding to the challenges of sustainable finance and the climate crisis. At a time when financial institutions are promoting themselves as champions of “green finance” and ESG principles, this case demonstrates that social and environmental responsibility still remains largely rhetorical. When courts fail to enforce accountability among financial institutions, Indonesia’s green transition agenda risks becoming little more than a slogan without substance.

“If financial institutions cannot be held accountable for the environmental destruction and social conflicts their financing causes, then calls for sustainable finance in Indonesia will remain as empty claims,” Linda stressed. “We hope the Supreme Court will take a bold step to uphold justice and ensure that sustainable finance carries real legal weight in protecting people and the environment.”

TuK INDONESIA’s appeal is expected not only to advance this particular case but to also set an important precedent in strengthening social and environmental accountability within the financial sector. The Supreme Court’s decision will ultimately determine the direction forward: whether Indonesia’s judiciary will side with social and ecological justice—or remain bound by business interests that disregard community rights and the future of the environment.

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This post is also available in: Indonesian