The Mandalika urban development and tourism project in Indonesia poses the risk of irreparable harm to Indigenous Peoples’ rights, UN experts* warned today, calling on all responsible parties to suspend the project until these concerns are addressed.

The appeal comes as the Asian Infrastructure Investment Bank (AIIB) prepares to approve the final loan disbursement for the Mandalika Tourism Development Project at its annual meeting on 25-26 September and ahead of the Pertamina Grand Prix of Indonesia, organised by Moto GP on 27- 29 September. For years, the project has been mired in allegations of forced evictions, loss of livelihood, inadequate resettlement and compensation for the Sasak Indigenous Peoples in Mandalika who have been most acutely affected.

“We call on AIIB to suspend its final loan disbursement until it is certain that this project will not contribute to further irreparable harm to the project-affected Indigenous Peoples that have already been arbitrarily displaced and cut off from their livelihoods,” the experts said.

“Indonesia must ensure the sustainable return of all those who have been arbitrarily displaced to their Indigenous lands. Where return is no longer possible, people should be provided with adequate compensation and resettlement, to be determined and organised with the participation of the affected Indigenous Peoples,” they said.

The experts have previously raised their concerns with the Government of Indonesia, the Indonesia Tourism and Development Corporation (ITDC, now rebranded InJourney Tourism Development Corporation), the borrower and the implementing agency, as well as the AIIB over its financing of the project.

The experts urged the AIIB to further engage in a constructive dialogue with them, fostering collaboration and mutual understanding to address critical issues. There also remains an urgent need for AIIB to take tangible action on the ground, including by conducting human rights due diligence that identifies, prevents, and mitigates adverse human rights impacts.

The Mandalika project includes the Mandalika International Circuit – a motorcycle racetrack hosting international sporting events. The experts have previously raised concerns about reports that security in Mandalika is being increasingly militarised, with police and military forces using unnecessary and excessive force against the Sasak Indigenous Peoples, including Sasak human rights defenders. [...]

“As the annual Moto GP race approaches, we urge Indonesia to ensure that the Sasak Indigenous Peoples currently living around Mandalika are not further intimidated and repressed by members of the army and the police,” the experts said.

Under international human rights law, Indigenous Peoples have the right to free, prior and informed consent to any process involving their relocation, including right of refusal and appropriate reparation measures including just and fair compensation.

The experts called on AIIB to observe the UN Basic Principles and Guidelines on Development-based Evictions and Displacement, which requires it to avoid evictions and displacement and follow strict safeguards when displacement is necessary in the public interest, to ensure full compliance with human rights.

Furthermore, the UN experts called again on Indonesia and the AIIB to ensure their policies and practices fully comply with international human rights standards as outlined in the UN Guiding Principles on Business and Human Rights.