On March 31, 2026, the World Bank Board of Executive Directors (the “Board”) approved the Inspection Panel’s recommendation not to investigate the Indonesia: East Kalimantan Project for Emission Reductions Results (P166244). 

On November 3, 2025, the Inspection Panel received a Request for Inspection submitted by Perkumpulan Nurani Perempuan (PNP), a local, non-governmental organization (NGO) representing members of the Long Isun community in East Kalimantan, Indonesia. Accountability Counsel and the Forest Peoples Programme, international NGOs, served as their advisors. The Requesters asked to keep their identities confidential due to concerns about potential retaliation. 

The Request states that the Project fails to acknowledge the community’s land rights and customary land use; restricts their ability to maintain cultural practices such as forest rituals and rotational swidden farming; and creates livelihood losses. It states that the Project “replaces Indigenous-led forest governance with a market-based, commercial-actor-driven model” that commodifies forests as carbon assets, marginalizing Indigenous stewardship “under the guise of sustainable management.” The Request also claims the Project’s Benefit Sharing Plan (BSP) “entrenches structural discrimination” by denying the community direct access to benefits. It further alleges that Project consultations were inadequate and misrepresented the community’s Free Prior and Informed Consent (FPIC), which prompted the community to opt-out of the Project. The Request claims the Project made minimal efforts to ensure women participate in ways that reflect their needs and cultural roles. The Request alleges the Project has disproportionately harmed Indigenous women while failing to recognize, assess, or mitigate these impacts through inclusive and gender-sensitive consultations. It also alleges that the community has faced “veiled threats” since raising concerns about the Project. 

The Panel registered the Request on December 23, 2025, and it received Management’s Response on February 11, 2026. In its Response, Management recognized weaknesses and potential non-compliances in the original BSP, and it initiated a BSP revision, as well as additional consultations. Management also acknowledged that initial consultations were insufficient and that communities were inadequately informed about the Project and its objective. Management ensured that the Project increased its efforts to engage and consult with villages and community stakeholders, particularly during the revision of the BSP and the socialization of the revised BSP which is to be applied to the Final Payment. Management indicated that it took the allegation of retaliation seriously and raised the concerns with Indonesian authorities.

A Panel team visited Indonesia from February 16 to 27, 2026 to determine the eligibility of the Requesters’ claims. In its Report and Recommendation submitted to the Board on March 17, 2026, the Panel noted that the Request for Inspection meets all the technical eligibility criteria set forth in the Panel Resolution. However, the Panel did not recommend an investigation as it is satisfied that Management has dealt appropriately with the allegations of harm that are plausibly linked to the Project – including those of structural discrimination entrenched by the BSP; inadequate consultations; and fear of retaliation against the community for its decision not to engage with the Project – and that these allegations have been or are being addressed. The Panel further noted that the Requesters’ other allegations – the delays in the MHA recognition process; the disregard of the customary right to occupy, use, and manage ancestral lands; and gender-based violence, exclusion, and discrimination against women – are not plausibly linked to the Project. The Panel further noted that the Requesters are not precluded from submitting a future Request for Inspection based on new evidence or circumstances not known at the time of the current Request. 

On March 31, 2026, the Board approved the Panel’s recommendation not to investigate the Request.  Learn more.