Ruggie framework applied to Bakire Group & Indonesian mud volcano - company should admit responsibility & help establish remedy for victims, article argues

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Article
10 August 2011

Sidoarjo Mud Volcano – A Bakrie Group Response

Author: Christopher Fong, Bakrie Group

Last week’s edition of CSR Asia covered the devastating mud volcano that has impacted thousands of Indonesians and the role the Ruggie Framework could play in alleviating business and human rights issues associated to this disaster. Unfortunately the story is incorrect, misleading and contrary to the facts and therefore it is unlikely the Ruggie Framework has any relevance to this particular issue...What CSR Asia neglected to report is the continued social and financial assistance provided by the Bakrie family towards the affected residents and businesses. This assistance was revised a number of times between 2006-2009 to incorporate greater needs of the residents and businesses within an area designated by the Government and legalized via a Presidential decree...

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Article
3 August 2011

The Sidoarjo Mud Volcano: A Ruggie Framework Perspective [Indonesia]

Author: Matthew Guenther, CSR Asia

With the release...of the Ruggie Framework on Business and Human Rights, this article will explore how applying this framework could help to rectify the neglected human rights of the people affected by Lusi [man-made mud volcano in Sidoarjo, Indonesia]...[T]he mud flow...has buried over 10,000 homes, displaced 40,000 people, and caused damages estimated at around USD $3 billion...The government has failed multiple times to protect its citizens...The Bakrie Group is also failing to uphold its responsibility...Even though the Bakrie Group was not...operating the drill well, the Ruggie Framework would say they are responsible through their business relationship with Lapindo [part of Bakrie Group], and for failing to perform...due diligence on its...subsidiary...The Bakrie Group should admit to its share of the blame and offer to help the government in remediation efforts...[T]he government and the Bakrie Group need...to establish a formal remedy mechanism for the victims of Lusi.

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