AIIB Statement on OHCHR Media Communication

The Asian Infrastructure Investment Bank (AIIB) takes note of the media communication issued by the United Nations Human Rights Office of the High Commissioner–Special Procedures Branch (OHCHR) dated March 31, 2021 which quotes experts on the Mandalika tourism project and AIIB’s role in that project.

The OHCHR release stated that “The communications to Indonesia, the ITDC and the AIIB and any response received will be publicly available in the Special Procedures communications database on 3 May 2021.”

It is therefore regrettable that AIIB was not afforded the 60 days as outlined in their report to comprehensively respond to the findings of the OHCHR. This would have provided a fairer and more balanced representation of the role of AIIB in the Mandalika tourism project in Lombok, Indonesia.

Nonetheless, AIIB takes allegations of human rights violations extremely seriously whether these be directly or indirectly related to the Bank’s operations.

AIIB would like to reiterate that its operations are guided by the Bank's stringent Environmental and Social Framework (ESF) which integrates good international practice on environmental and social planning and management of risks and impacts into decision-making on, and preparation and implementation of AIIB-supported projects.

Regarding complaints related to the implementation of the Mandalika tourism project, AIIB acted swiftly by commissioning an independent consultant to engage with a broad range of stakeholders including the project client (Indonesia Tourism Development Cooperation, ITDC), representatives from the local government, the contractor for the MotorGP, village heads, project-affected peoples and civil society representatives.

The final report found no evidence of the alleged coercion, direct use of force and intimidation relating to land acquisition and resettlement. Further, the report found that following a complaint to the Indonesian Commission on Human Rights concerning 17 plots of claimed lands, the Commission found no evidence of alleged illegal land acquisition and/or intimidation.

While AIIB strives to ensure that our operations are aligned to the best environmental and social practices, we recognize that there is room for improvement in stakeholder engagement by all parties concerned. To this end, AIIB and ITDC agreed on an action plan that seeks to improve stakeholder engagement; specifically with project-affected people, village heads and local government officials and more widely with civil society and the wider population of Lombok.