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

Author: Matthew Guenther, CSR Asia, Published on: 3 August 2011

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 establish a formal remedy mechanism for the victims of Lusi.

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Related companies: Energi Mega Persada Lapindo Brantas (joint venture Energi Mega Persada, MedcoEnergi, Santos)