Controversial pulp mill set to resume operations<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
A controversial pulp mill owned by Toba Pulp Lestari (TPL) in
\nNorth Sumatra looks certain to resume permanent operations,
\ndespite strong environmental opposition.<\/p>\n
Wagimin Wongso, president of TPL, formerly PT Inti Indorayon
\nUtama, said in Jakarta Friday that following extensive
\npreparations and a month-long test run, the pulp factory would
\nopen limited operations in March.<\/p>\n
In its first year of operation the factory would use 700,000
\ncubic meters of timber, supplied from its industrial estates, to
\nproduce 150,000 tons of pulp, he said. Its maximum output was
\nestimated at 1.1 million tons of pulp from about 250,000 cubic
\nmeters of wood.<\/p>\n
\"In the first years, we will operate in a limited capacity to
\nmeet environmental interests, to show the public that our company
\nis committed to preserving the environment and to empowering
\nhuman resources in the area where we are operating,\" he said at a
\npress conference.<\/p>\n
Waimin said TPL had built a waste water plant to manage its
\ntoxic waste water and utilized technology to minimize odors and
\nneutralize other hazardous chemical waste.<\/p>\n
With an injection of US$50 million from Hong Kong-based Sternt
\nCapital Ltd and a consortium of stakeholders in Boston, the
\ncompany, previously owned by Sukamto Tanoto of Radja Garuda Mas
\nGroup, is expected to export about 70 percent of its output to
\nJapan, China and Taiwan.<\/p>\n
From an environmental point of view, TPL had been operating
\nfor a month in accordance with environmental conditions required
\nby the government and \"so far, we have received no complaints on
\nour waste water and gases released into the air,\" he said.<\/p>\n
The planned opening of the pulp factory has met opposition
\nfrom a small number of people in North Sumatra, religious
\ninstitutions and an alliance of non-governmental organizations,
\nwho all cite the company's previous bad record.<\/p>\n
The company, established in 1989 under former president
\nSoeharto's repressive regime, has drawn strong protests from
\nnumerous sides for its arrogance and the absence of its
\ncontribution to local community development in Porsea and Toba-
\nSamosir regencies, about 200 kilometers south of Medan, the
\ncapital of the North Sumatra province.<\/p>\n
It has been blamed for alleged water and air pollution in the
\nregency, rampant deforestation and a drop in water levels at lake
\nToba. No environmental studies have been conducted to verify the
\nclaims.<\/p>\n
Sporadic anti-TPL demonstrations over the last four years,
\nwhich led to the factory's temporary suspension of operations in
\nJuly, 1999, has claimed tens of lives.<\/p>\n
So far, 16 protesters, including two church ministers, have
\nbeen charged after allegedly damaging the Porsea district head's
\noffice during a rally near the factory last November.<\/p>\n
TPL spokesman Edward Depari said it was committed to complying
\nwith all social, environmental and economic requirements set by
\nthe government as conditions to resuming operations.<\/p>\n
\"TPL accepts the proposed establishment of an independent
\naudit team to audit its performance annually and it's ready to
\naccept a permanent closure should it breach environmental
\nstandards set by the environment minister's office. It will also
\nsupply logs as raw materials to the pulp mill from its industrial
\nestates in North Sumatra.<\/p>\n
\"The management has paid Rp 5 billion in advance to a
\nfoundation established by Toba-Samosir administration and the
\nlocal community to carry out local community development programs
\nto empower local people,\" he said.<\/p>\n
The management would contribute one percent of its annual
\nprofit to the programs, besides paying an estimated Rp 55 billion
\nin taxes to the local administration, he said.<\/p>\n
Postdam Hutasoit, a member of the House of Representatives'
\nCommission V on environment and industry, called on NGOs and
\nstudents to exercise patience and give TPL a chance to improve
\nits social, economic and environmental performance.<\/p>\n
\"Toba-Samosir, a new regency with 350,000 people living in
\npoverty, needs industries to stimulate its economic growth. TPL
\nshould be given the chance to resume operations in efforts to
\nempower the local administration and local people,\" he said.<\/p>\n
However, it would not be difficult to close the company down
\nshould it break its commitment, he said.<\/p>",
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