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Environmental Organizations Urge German Automakers Not to Engage in Supply Chains of Companies Destroying the Leuser Forest

PT Alam Cempaka Wangi and PT Hasil Bumi Sembada are currently actively attempting to secure mining concessions in Beutong Ateuh, which could potentially destroy the Leuser Ecosystem area—one of the world's most critical rainforest sites acting as the lungs of the Earth.

Press Release

For Immediate Release

Saturday, October 3, 2026

 

BANDA ACEH – German environmental and indigenous rights organizations, Rettet den Regenwald e.V and its partner network The Coalition against Mining in Aceh, have warned German automakers such as BMW, Volkswagen, and Mercedes-Benz against entering the electric vehicle and battery supply chains of the Indonesian company PT. Green Power Group Tbk.

This is because the company, through its subsidiaries PT Alam Cempaka Wangi and PT Hasil Bumi Sembada, is currently actively attempting to obtain mining concessions in Beutong Ateuh, which has the potential to destroy the Leuser Ecosystem area—one of the world’s most critical rainforest sites acting as the lungs of the Earth.

“Your company plays a vital role in the transition to fossil-fuel-free mobility and is bound by strict environmental, social, and governance (ESG) standards, as well as the German Supply Chain Due Diligence Act (LkSG) and the EU Corporate Sustainability Due Diligence Directive (CSDDD),” wrote Marianne Klute of Rettet den Regenwald e.V in her letter.

As is known, the connection between PT Green Power Group Tbk (LABA)—through its majority shareholder entity PT Energie Baru Investasi Indonesia—and PT Alam Cempaka Wangi and PT Hasil Bumi Sembada lies in the shareholding structure and upstream mining business affiliations.

Based on recent corporate document tracking, PT Energie Baru Investasi Indonesia is the controlling (majority) shareholder with a 65% stake in PT Alam Cempaka Wangi.

Meanwhile, PT Hasil Bumi Sembada has an almost identical shareholder composition, where a 65% stake is also controlled by PT Energie Baru Investasi Indonesia.

The remaining shares in both entities are held by the same strategic partners, namely Muchtar Simanjuntak (25%) and PT Sumatra Global Investment (10%).

Mining Consolidation Affiliations in Aceh

PT Alam Cempaka Wangi and PT Hasil Bumi Sembada are two companies holding exploration mining permit concessions in the Beutong Ateuh region, Aceh.

Through the ownership chain of PT Energie Baru Investasi Indonesia, these mineral mining exploration assets (such as copper and gold) are consolidated to support the long-term target of PT Green Power Group Tbk (LABA) in securing the raw mineral supply chain for the electric vehicle battery (EV Battery) and renewable energy industries in Indonesia.

Why then are these companies considered to be violating environmental and human rights regulations?

First, these two subsidiaries, PT Alam Cempaka Wangi and PT Hasil Bumi Sembada, are actively trying to secure mining concessions in Beutong Ateuh District (Aceh, Sumatra).

This directly contradicts the 2020 Indonesian Supreme Court ruling, which revoked mining permits in the region due to its extreme ecological vulnerability.

Second, the mining area serves as a critical buffer zone for the Leuser Ecosystem, one of the world’s most important carbon sinks and the last remaining habitat where Sumatran Tigers, Elephants, and Orangutans coexist.

Third, violation of indigenous rights: On July 22, 2026, the local council of indigenous peoples (Masyarakat Hukum Adat) officially issued a firm rejection of these mining activities. The granting of mining permits constitutes a serious breach of the principle of Free, Prior, and Informed Consent (FPIC).

Fourth, following devastating flash floods and lahar at the end of 2025, mining activities in these steep mountain forests pose an immediate, life-threatening risk to civilians living in the valleys.

Fifth, according to Aceh Qanun No. 19 of 2013 on the Spatial Plan of Aceh (RTRWA) 2013-2033, Beutong Ateuh Benggalang District is classified as a disaster-prone area susceptible to natural hazards such as floods, landslides, droughts, and earthquakes scaled VII-XII MMI (Modified Mercalli Intensity). This was demonstrated by Tropical Cyclone Senyar on November 26, 2025, which caused extreme destruction in the Beutong Ateuh Banggalang area.

“Given that PT. Green Power Group Tbk. positions itself as a key supplier for the global market of EV batteries and green technology, we urgently request your response,” wrote Marianne Klute.

“We urge the Indonesian Government to immediately exclude the Beutong Ateuh area from the national strategic mining reserve area. This regulation has heightened public concern regarding the potential destruction of the Beutong Ateuh region,” wrote Yusmadi Yusuf, Coordinator of The Coalition against Mining in Aceh.

Response from BMW

The objection letter from the environmental organization received a response from BMW Group Compliance. In its reply, the BMW Group stated that it has no direct business relationships with these companies. “We also have no indication of any indirect business relationships,” wrote Maximilian Stoib from the Purchasing Network and Supplier Communications Division.

BMW stated that having high environmental and social standards is an integral part of the BMW Group’s purchasing terms and conditions and applies globally, extending beyond direct suppliers.

“Under our purchasing terms, direct suppliers are required to comply with legal requirements as well as comprehensive environmental and social standards, and they must pass these obligations on to their sub-suppliers,” he said.

It was noted that the BMW Group Supplier Code of Conduct is a mandatory component of these purchasing terms—explicitly addressing the protection of biodiversity.

If there are indications of potential violations in the supply chain, the company will conduct an investigation and take appropriate action.

Furthermore, the BMW Group is actively involved in various initiatives to develop standards for responsible raw material extraction to certify supply chains and verify compliance with ESG requirements. ***

 

About CaMA

The Coalition against Mining in Aceh (CaMA) was declared on May 9, 2026, coinciding with National Anti-Mining Day. CaMA was born out of the concerns of several community groups regarding arbitrary mining practices.

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