MUFG and Danamon Were Protested to responsible on Forest Damage

MUFG and Danamon Were Protested to responsible on Forest Damage

PalmOilMagazine, JAKARTA – Civil coalition did protest in front of the office of Bank Mitsubishi UFJ Financial Group (MUFG) in Jakarta. The coalition claimed that MUFG should stop climate crisis by funding some big mining, agribusiness, and palm oil plantations in Indonesia.

The coalition also sued that MUFG segera should adopt No Deforestation, Peat, and Exploitation (NDPE) policy in every financing sectors that MUFG or its subsidiaries, including the customers in Indonesia which cover some big groups producing palm oil, pulp and paper, such as, Sinar Mas Group (SMG), Royal Golden Eagle (RGE), Salim Group, and Jardine Matheson Group.

“MUFG develops its business in Indonesia quickly and in the recent days, it acquired the sixth biggest bank in Indonesia, Bank Danamon. But the latest subsidiary has no obligation to obey the new policy in palm oil and forestry sectors of MUFG. This makes Bank Danamon as ‘the golden’ institution which gets the exception to obey MUFG policy and could take the advantage in regional level to execute the transaction in the risky and forbidden sectors,” Director of TuK Indonesia, Edi Sutrisno said, as in the official statement to PalmOilMagazine, Monday (5/4/2021).

By having no clear and firm commitment to NDPE policy, MUFG is not fully committed to implement the policy in forestry sectors., MUFG still runs Program for the Endorsement of Forest Certification (PEFC), the weak standard for still certifying the companies that damaged the forests, peat, and are in conflict with the people.

“It is proven that since 2016, MUFG has been giving loans more than US$ 500 million to Sinar Mas Group (SMG) which should be responsible on the continuous fire happening in Indonesia. SMG also is as the corporate which is well documented as the human rights violation actor, the worst environment damager, land plunder, intimidation, criminal, and violence.

MUFG also funded PT. Indofood, a multi-year company which violates the labors rights in palm oil plantation through its subsidiary, PT. London Sumatra and now faces the claim from the labor union for the unfair unemployment.

Until now the people in Lubuk Mandarsah, Jambi joining Kelompok Tani Sekato Jaya keep struggling for their food barn that was taken and once damaged by one of subsidiary of SMG, which is, PT. Wirakarya Sakti (WKS).

“We live here, really need the areas for the future of our children. We want to live in peace here. I beg you, PT. WKS, be understood the people who live in misery. Give back our indigenous land in Village of Lubuk Mandarsah,” Minarti, a female farmer living in Village of Lubuk Mandarsah who planted and sell banana, cassava, and chili to earn her living.

Secretary of Pusat Studi Agraria IPB University, Bayu Eka Yulian told that if the tear in the downstream just like the loss of life and the crime for the people is the result, one tear in the upstream just like the capital is the cause. The actors should re-think about the approach of investment decision and capital allocation by making sustainability as the philosophy of investment. “Otoritas Jasa Keuangan (OJK) with its Sustainable Financial Road Map should be the firm ‘conductor’ that the orchestra runs based on sustainable finance,” he said. (T2)

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