"Ahead of Harita's IPO, JATAM Warns OJK and IDX Related to Environmental-Humanitarian Crimes by Harita Group" 2 April 2023

The Mining Advocacy Network (JATAM) on Thursday, March 30, 2023, has officially sent letters to two important institutions related to investment, capital markets and finance, namely the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX). This is related to the planned Initial Public Offering (IPO) by PT Trimegah Bangun Persada, a nickel mining company owned by Harita Group operating in Kawasi, Obi Island, South Halmahera, North Maluku, Indonesia.

There are several reasons for JATAM’s urgency in sending the letters. As stated in the letter, JATAM highlighted 10 main points as follows. Firstly, the IPO of PT Trimega Bangun Persada’s shares took place amid widespread environmental damage and suffering of residents in Kawasi, South Halmahera, North Maluku.

The operations of PT Trimegah Bagun Persada, along with PT Gane Sentosa Permai, PT Halmahera Persada Lygend, PT Megah Surya Pertiwi, and PT Halmahera Jaya Ferronickel on Obi Island—which are all under the Harita Group, have devastated local people’s land/plantation, polluted water sources, river, and sea, polluted the air due to dust and pollution that affected residents’ health, to trigger social conflicts due to intimidation and repeated violence against residents who defend their living spaces.

Unilateral land grabbing was also carried out by PT Trimegah Bangun Persada, along with a number of other companies owned by Harita Group, without fair negotiation and compensation. [...]

In the end, JATAM also reminded that the Financial Services Authority and the Indonesia Stock Exchange as the regulator of financial transactions and the highest capital and financial market operator in Indonesia should participate. They must be responsible for generating ecological damage from PT Trimegah Bangun Persada’s investment on Obi Island and its waters, along with the risk of cost overruns of mitigation costs, if it is possible to do so.