Heidelberg Materials is facing a complaint under Germany's Supply Chain Due Diligence Act over plans by its Indonesian subsidiary, PT Indocement Tunggal Prakarsa, to develop a limestone quarry and cement plant in the Kendeng Mountains of Central Java.
The complaint, submitted to Germany's Federal Office for Economic Affairs and Export Control (BAFA) by 10 Indonesian complainants supported by local and international non-governmental organisations, alleges that the company failed to adequately assess potential environmental and human rights impacts associated with the proposed project. Opponents argue that the development could damage the region's karst ecosystem and affect local communities.
Heidelberg Materials said affected stakeholders had been consulted during the permitting process and that feedback had been incorporated into the project planning. The company added that no final decision has yet been taken on whether the project will proceed.
The case is the first to invoke Germany's supply chain legislation in relation to an Indonesian project and comes as similar due diligence requirements are expected to be introduced across the European Union over the coming years.
