"Supply Chain Act: Complaint filed against Heidelberg Materials"

Organisations accuse the company of disregarding human rights in Indonesia

Together with ten affected people, the human rights organisation FIAN, the Catholic aid organisation Misereor and the organisations Watch Indonesia and Inclusive Development International (IDI) today submitted a complaint to the Federal Office of Economics and Export Control (BAFA) against the cement company Heidelberg Materials. The complaint concerns violations of corporate due diligence obligations in connection with a planned cement project in the Kendeng Mountains in Central Java (Indonesia). "If the project is realised, we face an ecological catastrophe, impoverishment and the violation of our human rights," says Bambang Sutikyo, one of those affected who lives in the region.

In the run-up to its Annual General Meeting tomorrow in Heidelberg, the complainants are accusing the company of violating human rights and breaching the German Supply Chain Due Diligence Act (LkSG) by planning a limestone mine and a cement plant. Several scientific studies and a study commissioned by the Indonesian presidential office in 2017 point to the considerable risks of mining in the region. The implementation of the plans would irrevocably affect water availability and soil quality. This would have a serious impact on the livelihoods, food situation and health of indigenous people and farmers in the Kendeng region. "We are losing our livelihoods, such as our soils and agriculture, through which we can feed our families, meet our daily food needs and pay for our children's schools," continued complainant Bambang Sutikyo. Local residents have been protesting against the project for more than ten years.

German supply chain law: Amendment would undermine impact

Heidelberg Materials AG, one of the world's largest building materials companies, has been aware of the allegations and the protest for years, but is sticking to its plans. "The Supply Chain Act obliges Heidelberg Materials to comprehensively analyse the risks and prevent negative effects. This is only possible by stopping the project," explains Insa Heinke from FIAN. "We expect BAFA to order appropriate measures and, if necessary, impose fines to enforce them."

At the same time, FIAN and Misereor are warning against restrictions to the BAFA complaints procedure in light of the German government's proposed amendment, which is currently before the Bundestag.
According to the amendment, sanctions would no longer apply if companies do not analyse the risks of their projects, do not set up a complaints mechanism and do not appoint a human rights officer. "The amendment would undermine the preventative effect of the Supply Chain Act and massively lower the level of protection for people in Kendeng," warns Armin Paasch from Misereor. "It is also scandalous that the CDU/CSU is currently calling for a further weakening, which would mean that only 150 large corporations would be covered by the Supply Chain Act." FIAN and Misereor are calling on the German government to effectively implement the existing Supply Chain Act and ambitiously transpose the EU Supply Chain Directive into German law by mid-2028 in order to effectively protect those affected from human rights violations.

In response to an enquiry from the German broadcaster SWR, Heidelberg Materials stated that the criticism was unfounded, as its subsidiary Indocement complies with all legal requirements. The Indonesian Supreme Court had reviewed and upheld the proceedings. Furthermore, the plans had been amended to “protect the local ecosystem and ensure that the livelihoods of the local population are not adversely affected”. Any potential mining operations are being planned in such a way that water resources are not endangered, according to Heidelberg Materials.