Donggi-Senoro LNG Project in Indonesia: Affected Local Residents Submit Re-demand Letters to Mitsubishi Corporation and JBIC — Demanding Direct Consultations, Effective Remedy, and Cessation of Financing/Investment in New Projects —
In June this year, regarding the Donggi-Senoro LNG (DSLNG) project operating on Sulawesi Island, Indonesia, local community groups and environmental NGOs from Japan and Indonesia submitted letters to Japanese public and private stakeholders, pointing out severe damage to the livelihoods of surrounding residents, including fishing and agriculture. However, the responses received from Mitsubishi Corporation and the Japan Bank for International Cooperation (JBIC, wholly owned by the Japanese government) merely stated that they were “unaware of any issues on the ground," offering no concrete measures toward problem resolution.
In response, on September 23, 2026, these organizations resubmitted demand letters to both entities, urging them to fully grasp the reality of the harm caused by the project and to take action to ensure effective remedy and problem resolution.
DSLNG commenced commercial operations in 2015, with approximately 65% of the produced LNG purchased by Japanese companies.
The latest demand letters point out that the failure of Mitsubishi Corporation, the largest shareholder in the project (holding an approx. 45% stake), and JBIC, the primary lender, to grasp the reality of the harm suffered by local residents over many years stems from critical flaws and deficiencies in their human rights and environmental due diligence (DD) and monitoring frameworks.
The main demands outlined in the respective letters are as follows:
・Demanding that Mitsubishi Corporation fulfill its responsibility under the UN Guiding Principles on Business and Human Rights (UNGPs) regarding the “corporate responsibility to respect human rights" and “access to remedy," and that JBIC take accountability for its own gross negligence in the implementation of the “Japan Bank for International Cooperation Guidelines for Confirmation of Environmental and Social Considerations.”
・Promptly establishing opportunities for direct consultations with affected local communities and making earnest efforts toward ensuring effective measures for problem resolution.
・Refraining from providing any further investment or financing for new gas-related projects planned or promoted in the surrounding area unless and until the existing issues concerning DSLNG are resolved.
For further details, please refer to the respective demand letters below:
● Letter to Mitsubishi Corporation (Original Bahasa Indonesia / Japanese Translation / English Translation)
● Letter to JBIC (Original Bahasa Indonesia / Japanese Translation / English Translation)
Request for Consultation with Adversely Affected Communities and Ensuring Effective Remedy Regarding the Donggi-Senoro LNG Project in Central Sulawesi, Indonesia
(This is a translation by WALHI Central Sulawesi- The original document was written in Indonesian.)
September 23, 2026
Mr. Katsuya Nakanishi, Representative Director, President and Chief Executive Officer, Mitsubishi Corporation
In our letter dated June 24, 2026, we pointed out the impacts that the Donggi-Senoro LNG Project (DSLNG) has caused over more than a decade to the livelihoods and health of local communities. At the same time, we emphasized the necessity of developing, implementing, and monitoring effective measures (including appropriate and adequate compensation for all affected local communities) in a transparent manner to these problems are resolved. The prolonged harm suffered by local communities is nothing short of a human rights violation, and “access to remedy" must be guaranteed based on the “corporate responsibility to respect human rights" set forth in the United Nations Guiding Principles on Business and Human Rights (UNGPs).
We hereby present the following two specific requests to your Company, which explicitly commits to “Support and respect for international norms " such as the UNGPs in its Human Rights Policy[1]:
(1) To promptly establish opportunities for consultation with affected fishing and farming communities, in order to thoroughly understand and assess the severe impacts suffered over the past decade, as well as the remedies required by these communities.
(2) Based on the said consultations, to exercise all possible outreach to PT Donggi-Senoro LNG (PT DSLNG) to ensure effective remedy and problem-solving measures.
If your Company currently recognizes that there are no particular issues regarding environmental and social considerations related to DSLNG, we must say that your human rights and environmental due diligence (DD) and monitoring are extremely inadequate. We are gravely concerned about the possibility that your Company has relied primarily on reports from PT DSLNG, failing to conduct independent and proper verifications and scrutinies without the involvement of PT DSLNG.
We believe that your Company’s prolonged failure to grasp the reality of the harm suffered by local communities stems from nothing less than fundamental flaws in your own practice to implement the principles of “corporate responsibility to respect human rights" and “access to remedy" required by the UNGPs. As the largest investor in this project, your Company’s responsibility is exceptionally heavier than that of other stakeholders, and you are in a position where you should play a more proactive role and demonstrate accountability in respecting the human rights of local communities and ensuring access to remedy.
Therefore, we strongly demand that your Company fulfill its responsibility by first establishing opportunities for direct consultation with local communities as stated in (1) above, and by demonstrating the utmost sincerity and commitment toward ensuring effective remedies in line with (2). Your Company explains that “it is not in a position to independently conduct explanations or exchanges of views regarding operational responses on-site from the perspective of ensuring consistency in information dissemination." However, if that is the case, your Company should take the initiative to arrange a consultative platform where PT DSLNG is also present.
Finally, regarding the new gas-related projects being planned and promoted in the vicinity of DSLNG, we emphasize that even if opportunities arise to invest in such projects, your Company must refrain from making any investments until the existing issues surrounding DSLNG are fully resolved.
Sincerely,
SIGNATORIES:
Serikat Nelayan Uso (SNU) (Uso Fishers’ Union)
Serikat Petani Uso (SPU) (Uso Farmers’ Union)
Masyarakat Nelayan Sinorang Pantai (Fishers’ Community of Sinorang Coast)
Wahana Lingkungan Hidup Indonesia (WALHI) Central Sulawesi
WALHI National Executive
Friends of the Earth Japan
Cc:
Mr. Kazuhiko Amakawa, Governor, Japan Bank for International Cooperation (JBIC)
Mr. Atsuo Kuroda, Chairman and CEO, Nippon Export and Investment Insurance (NEXI)
Mr. Toru Nakashima, President and Group CEO, Sumitomo Mitsui Financial Group, Inc.
Mr. Junichi Hanzawa, President & Group CEO, Mitsubishi UFJ Financial Group, Inc.
Mr. Masahiro Kihara, President & Group CEO, Mizuho Financial Group, Inc.
Contact:
WALHI Central Sulawesi
Add: Jalan Tanjung Manimbaya Nomor 126, Kelurahan Tatura Utara, Kecamatan Palu Selatan, Kota Palu, Sulawesi Tengah
Email: sulteng@walhi.or.id
Tel: +62 822-1553-4058
WALHI National Executive
Add: Jl. Tegal parang Utara No. 14, RT.005/RW.004. Mampang Prapatan, Kota Jakarta Selatan – DKI Jakarta
Email: Faizalabdrahman@gmail.com
Tel: +62 822-9005-6503
Friends of the Earth Japan
Add: 1-21-9 Komone, Itabashi-ku, Tokyo, Japan 173-0037
Email: hatae@foejapan.org
Tel: +81 3 6909 5983
[1] https://www.mitsubishicorp.com/jp/en/sustainability/social/humanrights/001.html
Request for Consultation with Adversely Affected Communities and Ensuring Effective Remedy Regarding the Donggi-Senoro LNG Project in Central Sulawesi, Indonesia
(This is a translation by WALHI Central Sulawesi- The original document was written in Indonesian.)
September 23, 2026
Mr. Kazuhiko Amakawa, Governor, Japan Bank for International Cooperation (JBIC)
In our letter dated June 24, 2026, we pointed out the impacts that the Donggi-Senoro LNG Project (DSLNG) has caused over more than a decade to the livelihoods and health of local communities. At the same time, we emphasized the necessity of developing, implementing, and monitoring effective measures (including appropriate and adequate compensation for all affected local communities) in a transparent manner to ensure these problems are resolved.
We hereby present the following two specific requests to your Bank:
(1) To promptly establish opportunities for consultation with affected fishing and farming communities, in order to thoroughly understand and assess the severe impacts suffered over the past decade, as well as the remedies required by these communities.
(2) Based on the said consultations, to exercise all available leverage over the project proponents to ensure effective remedy and problem-solving measures.
During the meeting on August 17, your Bank provided the following explanations regarding your response based on the “Japan Bank for International Cooperation Guidelines for Confirmation of Environmental and Social Considerations”(the Guidelines):
(a) During the environmental review period prior to the finance decision, your Bank was not aware of the various issues raised in our letter dated June 24, 2026.
(b) During the monitoring period following the loan decision (until full repayment), your Bank received annual monitoring reports from the project proponent, yet remained unaware of the various issues raised in the same letter.
(c) Your Bank is currently not conducting monitoring under the Guidelines (and the receipt of monitoring reports from the project proponents has also concluded).
The points (a) and (b) above clearly demonstrate that your Bank’s environmental review and monitoring were extremely inadequate. We believe one of the primary root causes is that your Bank relied primarily on reports provided by the project proponent, failing to conduct independent reviews or verifications without the project proponent’s involvement.
Your Bank’s prolonged failure to grasp the reality of the damages constitutes nothing less than gross negligence in the implementation of the Guidelines. Without your Bank’s financial support, the DSLNG project would not have proceeded, and the local communities would not have suffered. Furthermore, had appropriate measures been taken during the monitoring stage, the harm would not have persisted for so long or become so severe. As the largest financier of this project, your Bank bears an exceptionally heavy responsibility. Even if your Bank is no longer conducting monitoring under the Guidelines as noted in (c), we believe that your responsibility for past negligence is by no means absolved.
Therefore, we strongly demand that your Bank fulfill its responsibility by first establishing opportunities for direct consultation with the local communities as stated in (1) above, and by demonstrating the utmost sincerity and commitment toward ensuring effective remedy in line with (2).
Finally, regarding the new gas-related projects being planned and promoted in the vicinity of DSLNG, we emphasize that even if opportunities arise to provide financial support to such projects, your Bank must refrain from extending any financial assistance until the existing issues surrounding DSLNG are fully resolved.
Sincerely,
SIGNATORIES:
Serikat Nelayan Uso (SNU) (Uso Fishers’ Union)
Serikat Petani Uso (SPU) (Uso Farmers’ Union)
Masyarakat Nelayan Sinorang Pantai (Fishers’ Community of Sinorang Coast)
Wahana Lingkungan Hidup Indonesia (WALHI) Central Sulawesi
WALHI National Executive
Friends of the Earth Japan
Cc:
Ms. Satsuki Katayama, Minister of Finance
Mr. Ryosei Akazawa, Minister of Economy, Trade and Industry
Mr. Atsuo Kuroda, Chairman and CEO, Nippon Export and Investment Insurance (NEXI)
Mr. Toru Nakashima, President and Group CEO, Sumitomo Mitsui Financial Group, Inc.
Mr. Junichi Hanzawa, President & Group CEO, Mitsubishi UFJ Financial Group, Inc.
Mr. Masahiro Kihara, President & Group CEO, Mizuho Financial Group, Inc.
Contact:
WALHI Central Sulawesi
Add: Jalan Tanjung Manimbaya Nomor 126, Kelurahan Tatura Utara, Kecamatan Palu Selatan, Kota Palu, Sulawesi Tengah
Email: sulteng@walhi.or.id
Tel: +62 822-1553-4058
WALHI National Executive
Add: Jl. Tegal parang Utara No. 14, RT.005/RW.004. Mampang Prapatan, Kota Jakarta Selatan – DKI Jakarta
Email: Faizalabdrahman@gmail.com
Tel: +62 822-9005-6503
Friends of the Earth Japan
Add: 1-21-9 Komone, Itabashi-ku, Tokyo, Japan 173-0037
Email: hatae@foejapan.org
Tel: +81 3 6909 5983
