Holcim and NGO consortium
Lead NCPSwitzerland
Supporting NCP(s)None Selected
DescriptionSpecific instance submitted by a NGO consortium regarding the activities of Holcim Indonesia Tbk. controlled by LafargeHolcim Group, and land use conflict.
Theme(s)General policies, Human rights
Date19 Mar 2015
Host country(ies)Indonesia
Industry sectorConstruction

Read the initial assessment issued by the Swiss NCP – 30 June 2015

Read the final statement issued by the Swiss NCP – 12 July 2017

In March 2015, the Swiss NCP received a submission by a consortium of NGOs regarding the activities of Holcim Indonesia Tbk., controlled by LafargeHolcim Group. The allegations concern a land use conflict in the Regency of Blitar, East Java, Indonesia.

According to the submitters, the designation of a compensation land related to activities of Holcim, would adversely affect 826 households, or about 3000 persons, from the village of Ringinrejo. The NGOs claim that Holcim did not undertake negotiations with the concerned population of Ringinrejo, but instead with farmers, who do not live on the compensation land but cultivate it.

In its initial assessment, the Swiss NCP accepted the submission for further consideration and offered its mediation services, which the parties accepted.
On 16 November 2015, decision-making representatives of both parties participated in a mediation meeting in Berne. Both parties demonstrated their willingness to seek a mutual satisfactory solution to settle the dispute and agreed in a joint outcome on concrete steps to be implemented in Indonesia.

Between February 2016 and January 2017, the Swiss NCP followed the implementation of the agreed joint outcome. During this period, four meetings took place between the submitting and responding party in Indonesia. Furthermore, several bilateral meetings between the involved parties and Indonesian stakeholders related to the specific instance (e.g. Ministry of Environment and Forestry, local communities) took place.

In spring 2017, a representative of the Swiss Embassy in Jakarta assessed the situation and the progress in Indonesia. Based on this assessment, the information received during the follow-up activities of the Swiss NCP and due to several changes of the framework conditions (e.g. confirmation of the legal situation regarding the landswap), the Swiss NCP decided to conclude the specific instance and published the final statement on 12 July 2017.

The Swiss NCP will follow-up by asking the parties to report on progress six months after the closure of the specific instance. The Swiss NCP expects parties to submit a written report to the Swiss NCP, which can be shared with the other party. The Swiss NCP will decide upon receipt of these reports about necessary further steps in consultation with the parties.