The executive board of Norges Bank has decided to place an Indonesian cement producer under observation, which may eventually lead to the company being excluded from the investments of the Government Pension Fund Global. 

The company that has been put under observation for the next three years is Semen Indonesia Persero Tbk (SIG). The decision is based on the risk of damage to prehistoric cultural heritage sites where the company holds mining concessions. Some of the cave art discovered in the area has been found to be at least 43,900 years old.

At the end of 2022, the Government Pension Fund Global owned 1.59% of Semen Indonesia Persero Tbk. The value of the ownership then stood at NOK 447m (USD 45m). 

The executive board of Norges Bank supervises the investments of the Government Pension Fund Global, whose assets are managed by Norges Bank Investment Management (NBIM)., also known as the oil fund. The decision to place the company on the observation list was made on the basis of a recommendation by the Council on Ethics of the Government Pension Fund Global, dated Dec. 19, 2022. Norges Bank announced its decision to place the company under observation on May 25, 2023.

Semen Indonesia Persero Tbk (SIG) is Indonesia’s largest producer of cement and 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, the Council of Ethics stated in December.

“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,” it added. 

Earliest figurative art in the world

The paintings in the caves in the Maros-Pangkep karst show that humanity’s first art can have been born in Southeast Asia and not in Europe. 

Several new art discoveries have been made in the region in recent years. The most recent of these is the painting of a warty pig, which was discovered in a cave in Sulawesi in 2021. 

Indonesian rock researcher Adhi Agus Oktaviana from Griffith University said then that future research in eastern Indonesia is likely to lead to the discovery of much older rock art and other archaeological evidence, dating back at least 65,000 years.

“We have found and documented many rock art images in Sulawesi that still await scientific dating. We expect the early rock art of this island to yield even more significant discoveries,” Oktaviana said to CNN.

”Responsibility extends to heritage yet undiscovered”

According to the Council on Ethics of Government Pension Fund Global, Semen Tonasa has no systematic monitoring of rock art sites which would provide 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,” it writes. 

According to NBIM’s statement, the Indonesian 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.”

The oil fund is one of the largest equity investors in the world, with an AUM of NOK 15.08trn (EUR 1.27trn) at present. NBIM currently invests in 9,228 companies across 70 countries.