Indorayon mill workers continue with Medan vigil<\/p>\n
JAKARTA (JP): Thousands of PT Inti Indorayon Utama employees,
\nfaced with the threat of losing their jobs next month, entered
\ntheir fourth day on Sunday of camping out in the courtyard of the
\nNorth Sumatra governor's offices in Medan.<\/p>\n
The demonstrators, including management staff, started their
\nvigil on Thursday as the government remained undecided on the
\nstatus of the mills in the North Tapanuli town of Porsea near
\nLake Toba, which have been forced to stop production since July
\ndue to security disturbances.<\/p>\n
A spokesman for the workers, Nasrun, said on Sunday, \"We will
\nremain here and will bring our families to join our protest until
\nthe government takes firm action to allow our mills to resume
\nproduction without physical harassment by some local people.\"<\/p>\n
A member of management, Fatmin Manalu, said that Indorayon's
\nboard of directors had notified the company's 6,000 employees on
\nthe probability of massive layoffs starting next month unless the
\nmills could return to normal operations, reported Antara.<\/p>\n
Contacted in Medan, Indorayon's finance director, David Pile,
\nconfirmed that his company continued paying full wages to all
\nemployees between July and September despite the stoppage of
\nproduction.<\/p>\n
\"But our severely affected cash-flow is forcing us to halve
\ntheir pays for this month and, unless the mills reopen soon, we
\nmay have to fire them all next month,\" Pile added.<\/p>\n
Pile said Indorayon had lost about US$20 million a month in
\nrevenues since July after a large group of local protesters
\nblocked the main public access roads to the mills, disrupting
\ndeliveries of supplies and materials.<\/p>\n
Pile could not understand why the government had not been able
\nto protect Indorayon, which did not breach any laws, from
\nsecurity disturbances by irresponsible protesters.<\/p>\n
Indorayon, which is traded on the Jakarta and Surabaya stock
\nexchanges, is 62 percent owned by Singapore-registered Asia
\nPacific Resources International Holdings Ltd., which is listed on
\nthe New York Stock Exchange.<\/p>\n
The other 38 percent of Indorayon is owned by the investing
\npublic, cooperatives and several other shareholders from Finland.<\/p>\n
Before the operation suspension, Indorayon exported 70 percent
\nof its annual production of 240,000 metric tons of hardwood pulp
\nand 60,000 tons of rayon fiber.<\/p>\n
\"We do nothing wrong legally and environmentally. Yet, the
\ngovernment did almost nothing to prevent 100 to 200 people from
\nacting outside of the law,\" Pile said.<\/p>\n
He recounted that many fact-finding teams, including one sent
\nespecially by President B.J. Habibie, had successively visited
\nIndorayon after a protest in late June by some local people who
\naccused the company of polluting Lake Toba.<\/p>\n
\"But none of the teams, including those assigned by the
\nministers of environment, trade and industry and investment
\npromotion, gave us any clue as to what we have done wrong.<\/p>\n
\"Our operations have often been environmentally audited. The
\nlast audit, in 1995, covering environmental, safety and health
\nstandards, was conducted by U.S.-based Labat-Anderson Inc., a
\nleader in environmental compliance regulations, with good
\ncommendations,\" Pile added.<\/p>\n
Pile said that in response to the worsening situation,
\nIndorayon sent a letter on Friday to North Sumatra Governor T.
\nRizal Nurdin and President B.J Habibie expressing shareholders'
\nconcerns over the apparent lack of support from the local
\ngovernment in protecting the substantial investment of $600
\nmillion that has been made by Indorayon in the Porsea facility.<\/p>\n
\"The company's management also expressed concern over the
\nnegative impact that the closure of its Porsea operation would
\nhave on investment within Indonesia, and in North Sumatra and the
\nTapanuli district in particular,\" Pile added.<\/p>\n
He added that Indorayon reached an agreement on Sept. 25 with
\nthe ministers of industry of trade, manpower and the environments
\nand the North Sumatra governor that \"our company's operations
\nwill soon be subjected to an overall audit and that to facilitate
\nan effective audit, our mills have to be running operations for
\nat least three to six months\".<\/p>\n
\"But until now, no follow-up measure has been taken,\" he said,
\ncontending that how could Indorayon pollute Lake Toba because the
\nmills have relocated to the Asahan River, which is downstream
\nfrom the lake. (vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indorayon-mill-workers-continue-with-medan-vigil-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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