Five consultancy companies bid to audit Inti Indorayon<\/p>\n
JAKARTA (JP): Five foreign consultancy companies have been
\nshort-listed by the government in the tender to conduct an
\nenvironmental audit of PT Inti Indorayon Utama Tbk, a senior
\nofficial at the Ministry of Industry and Trade said on Thursday.<\/p>\n
The government is expected to announce its selection next
\nmonth, Gatot Ibnu Santosa, the director-general of chemical
\nindustry at the ministry, said on the sidelines of the
\nResponsible Care Indonesia seminar and workshop.<\/p>\n
The publicly listed pulp and paper company which has a major
\noperation near Lake Toba in Porsea, North Sumatra, was ordered by
\nPresident B.J. Habibie to suspend its operation in March pending
\nthe outcome of an independent environmental audit.<\/p>\n
Gatot said the five remaining bidders came from Germany, the
\nUnited States, Finland and Australia.<\/p>\n
They have been asked to submit their technical proposals, he
\nsaid.<\/p>\n
The audit must be concluded within six months, including one
\nmonth to receive verification of the audit results from the
\nEnvironmental Impact Management Agency, he said.<\/p>\n
Gatot said, however, that for the audit to be conclusive,
\nIndorayon must be allowed to resume full operation in order to
\nobtain samples of its waste, which would then be used to
\ndetermine whether the company was damaging the environment.<\/p>\n
Because Indorayon is a foreign investment company, the audit
\nresults will be sent to the Investment Coordinating Board, which
\nin turn will issue its recommendation to the President.<\/p>\n
The company became the target of demonstrations in July of
\nlast year by residents living near Lake Toba who were opposed to
\nits operation.<\/p>\n
They claimed the pulp and paper company damaged the
\nenvironment and presented a health hazard to residents.
\nEnvironmental organizations said the company caused the water
\nlevel of Lake Toba to decrease and harmed the forest in the area.<\/p>\n
The House of Representatives ordered the company in July of
\nlast year to suspend its operation pending an audit on the
\nenvironmental impact of its activities.<\/p>\n
The company resumed operations in November, supposedly to
\nallow the environmental audit to take place.<\/p>\n
The audit, however, was called off and demonstrations turned
\nugly when protesters clashed with company employees fearful of
\nlosing their jobs.<\/p>\n
The violence forced Habibie in March to completely suspend the
\ncompany's operations. Trading in Indorayon shares was suspended
\non the Jakarta Stock Exchange following the President's ruling.
\n(02)<\/p>",
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"sponsor": "Okusi Associates",
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