The executive board of Norway’s Norges Bank has decided to place Indonesia’s largest producer of cement under observation for three years under its guidelines concerning “other particularly serious violations of fundamental ethical norms”.

Norges Bank, whose investment management arm, Norges Bank Investment Management, manages investments on behalf of the Government Pension Fund Global, has placed PT Semen Indonesia (SIG) under observation following a recommendation from the Council on Ethics.

According to the board’s statement, the background for the decision was the “unacceptable risk” of damage on prehistoric and irreplaceable cultural heritage in Maros-Pangkep in South Sulawesi in Indonesia.

Ther decision to place the company under observation was based on a recommendation from the council on 19 December 2022.

The executive board noted that it has not conducted an independent assessment of all aspects of the recommendation, but it is satisfied that the observation criteria have been met.

“SIG is Indonesia’s largest producer of cement,” the Council on Ethics noted.
“Through its subsidiary, PT Semen Tonasa, the company operates a limestone quarry, a clay pit and cement factories in the Maros-Pangkep karst landscape in South Sulawesi, Indonesia.

“Some of the oldest rock art in the world is to be found inside or adjacent to the areas in which Semen Tonasa holds mining concessions, including cave art which is found to be at least 43,900 years old.

“Semen Tonasa has no systematic monitoring of rock art sites which provides a basis for assessing the activities’ impact on the rock art.

“The Council on Ethics considers that the company must take particular responsibility for ensuring that Semen Tonasa’s activities do not contribute to the destruction of the rock art, given the outstanding global significance of the cultural heritage it represents.

“This responsibility also extends to the protection of cultural heritage as yet undiscovered. The company has disclosed that it will implement further measures to ensure the protection of the heritage sites.

“As the measures are still in the planning stage, the Council recommends that SIG be placed under observation in order to monitor the implementation of these measures.”

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