Indorayon must operate for auditing: Rahardi<\/p>\n
JAKARTA (JP): Minister of Industry and Trade Rahardi Ramelan
\nsaid on Tuesday that the troubled pulp and rayon producer PT Inti
\nIndorayon Utama must run its mill in Porsea, North Sumatra, to
\nenable the independent audit team to evaluate its operations.<\/p>\n
\"When it's time, like it or not, (the mill) must be in
\noperation because in order to evaluate the mill's production
\nprocess, the machinery must be running,\" Rahardi told a media
\nconference.<\/p>\n
The Porsea mill, located near the picturesque Lake Toba, has
\nbeen the target of massive demonstrations since early July, when
\nit was forced to stop production by local protesters who alleged
\nthat the plant had damaged the environment.<\/p>\n
The mill began operating again late last month because in
\norder to be audited it has to have been running for five weeks.<\/p>\n
This incurred the wrath of local residents, who want the plant
\nto be closed without waiting for the results of the audit. Anger
\nthen spilled over into rioting in which cars, houses and
\ncommercial buildings belonging to the company were damaged or set
\non fire.<\/p>\n
The publicly-listed Indorayon last weekend urged the
\ngovernment to protect its operations, its workers and property
\nwhile its fate is being decided by the auditing team.<\/p>\n
It also urged the protesters to give the team a chance to
\ncomplete its work.<\/p>\n
Rahardi said the government had picked an auditor from a
\nnumber of local and foreign surveying companies which bid for the
\njob.<\/p>\n
However, he declined to name the winner, saying that he had to
\nfirst discuss the matter with State Minister of Environment
\nPanangian Siregar and Minister of Forestry and Plantations
\nMuslimin Nasution.<\/p>\n
Five firms which entered the competition were Sandwell from
\nCanada, Jakopoyry from Finland, Klocker from Germany, and the
\nlocal state-owned PT Sucofindo and PT Surveyor Indonesia.<\/p>\n
The team will conduct an extensive audit of everything
\n\"related to the existence of Indorayon\", he said.<\/p>\n
Rahardi said the auditor would also look into the feasibility
\nstudies conducted by Indorayon before it was given a license to
\noperate the mill in the area.<\/p>\n
He said the independent team would ascertain whether Indorayon
\nhad fulfilled all the conditions of its license agreement with
\nthe government and would devise new license requirements for
\nIndorayon which draw upon the demands of local residents.<\/p>\n
The team, which is expected to complete its work within three
\nmonths, will provide a recommendation to the government, which
\nIndorayon will then be given a chance to challenge.<\/p>\n
Indorayon is listed on the Jakarta and Surabaya Stock
\nExchanges. It is 62 percent owned by the Singapore-registered
\nAsia Pacific Resources International Holdings Ltd., which is
\nlisted on the New York Stock Exchange.<\/p>\n
The other 38 percent of Indorayon is owned by the investing
\npublic, cooperatives and a number of shareholders from Finland.<\/p>\n
Indorayon's mills have an annual production capacity of
\n240,000 metric tons of hardwood pulp and 60,000 tons of rayon
\nfiber. Before the suspension, the company exported 70 percent of
\nits output. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indorayon-must-operate-for-auditing-rahardi-1447893297",
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