NGOs from Korea and Indonesia file OECD complaint against POSCO International for causing palm oil abuses and National Pension Service and the Export-Import Bank of Korea for financing the abuses
12 December 2019
...Korean Transnational Corporations Watch (KTNC Watch), Yayasan Pusaka (Indonesia), WALHI Papua (Indonesia), and SKP KAMe (Indonesia), filed a complaint at Korea’s National Contact Point (NCP) for the OECD (Organization for Economic Cooperation and Development) against POSCO International and two Korean public financial institutions, the Korean National Pension Service (NPS) and the Export-Import Bank of Korea (KEXIM).
The complaint concerns POSCO International, the controlling owner, and the NPS and KEXIM, the financers of POSCO International. The complaint is related to the adverse impacts caused by the operation of the palm oil company PT. Bio Inti Agrindo (PT. BIA), a subsidiary of POSCO International in Papua, Indonesia. The adverse impacts include large-scale deforestation of tropical rainforest and loss of biodiversity; failure to implement Free, Prior and Informed Consent (FPIC) with the customary owners of the land in the process of developing the plantation; and violation of local residents’ right to water by degrading the Bian River water quality.
...Due to the degradation of the water quality of the Bian River, local residents can no longer use the water from the river for their daily activities or drinking. However, no measures were taken to ensure that the right to water of the local residents is protected.
The complainants...requested that POSCO International implement FPIC in their operation and ensure the right to water of the local communities relying on the Bian River.
They also request that the NPS engage with POSCO International to use their leverage and consider deforestation and infringement of the rights of indigenous people in their policies for socially responsible investment. The complainants request KEXIM to adopt policies for reviewing environmental and social risks...and refrain from providing further loans to support PT. BIA’s operations that are causing adverse impacts.