Taiwanese firm accused of pollution, rights abuses at Indonesian plants

Taipei, Aug. 6 (CNA) Taipei-based conglomerate Walsin Lihwa Corp. was accused Wednesday of causing severe pollution and human rights violations at its factories in Indonesia by local environmental groups and workers.

Indonesian NGOs -- the Indonesian Forum for the Environment (WALHI) and Action for Ecology and People's Emancipation (AEER) -- along with Taiwan's Environmental Rights Foundation (ERF), held a press conference at the Legislative Yuan, urging the government to address transnational violations and tighten oversight of overseas investments.

Johan Sappara, a worker at one of the company's Indonesian factories, said employees were given only surgical masks to protect against toxic air and coal dust. He added that occupational safety was poorly managed, with procedures that were poorly implemented for fall-related accidents.

Sappara also said the factory had only one foul-smelling lavatory for its 1,000 workers and that the resting area lacked proper ventilation.

In a statement released Tuesday, ERF said the company operates nickel smelters and a coal-fired power plant in Indonesia's Morowali Bay Industrial Park and Weda Bay Industrial Park.

At Wednesday's press event, Sawung Rukmono, WALHI's space planning and infrastructure campaign manager, said nickel mining had devastated local ecosystems, destroying hundreds of thousands of hectares of forest and displacing residential communities and Indigenous reserve lands.

Blood samples from residents and workers in Weda Bay showed heavy metal contamination, and locally consumed fish were also found to be tainted, Rukmono said.

Because the mines are located upstream from local rivers, Rukmono added, deforestation and development have led to heavy flooding during rainfall.

He urged the Taiwanese government to prevent the company from sourcing nickel from problematic suppliers or producing goods linked to the displacement of Indigenous reserve lands.

Sun Hsin-hsuan (孫興瑄), director of ERF's corporate accountability and international affairs department, said Taiwanese-funded companies operating overseas remain involved in rights violations, reflecting the government's lack of effective prevention and remedy mechanisms.

She called on the government to meet its international obligations and safeguard the rights of those harmed abroad.

In a written statement read by Sun on behalf of Democratic Progressive Party (DPP) Legislator Chiu Chih-wei (邱志偉), who was unable to attend the event, Chiu noted that current regulations allow authorities to reject investment projects by companies involved in international convention violations or major unresolved labor disputes.

However, he said the current review mechanisms lack transparency and enforcement, with human rights and environmental risk assessments still in draft form. He called for clear, enforceable regulations to be established.

DPP Legislator Lin Yueh-chin (林月琴) said the government should speed up legislation on corporate human rights and environmental responsibilities, set up official channels for overseas victims to file grievances, and require Taiwanese firms facing disputes to submit labor rights improvement plans and disclose the results.

She added that corporations should immediately stop purchasing from suppliers that violate human rights or harm the environment.

Lin noted that while Taiwan proposed a National Action Plan in 2020, it has only recently begun drafting requirements for manufacturers with over NT$50 billion (US$1.669 billion) in capital to disclose human rights and due diligence measures -- lagging behind Japan and South Korea, where related laws are under review.

She also called on state-run Chunghwa Post Co. to divest from Walsin Lihwa.

The Ministry of Economic Affairs Investment Review Department said it is open to suggestions on amending relevant regulations.

Investment reviews are cross-functional, and if authorities believe a project could breach international treaties or conventions, it will not be approved, the department said.

Regarding Chunghwa Post's divestment, the ministry said certain legal requirements must be met under the Industrial Innovation Statute.

In a statement released Tuesday, Walsin Lihwa said it had addressed the accusations and expressed regret over what it called "inaccurate" information from environmental groups.

The company said its power plants meet all environmental regulations and that its mining suppliers are legally approved by the Indonesian government. It also claimed it has no partnership with the suppliers named by the groups.

Regarding a recent workplace accident, the company said it responded promptly and that an Indonesian government investigation had been completed in line with insurance and compensation regulations. It added that it provided compensation well above the legal requirement as a gesture of care.