Indorayon wins backing for controversial mill<\/p>\n
JAKARTA (JP): Pulp and rayon fiber producer PT Indorayon Utama
\nhas gained further backing for its controversial plant in the
\nPorsea district, North Sumatra, with chairman of the National
\nEconomic Council Emil Salim warning the government on Saturday
\nnot to restrict operation of the factory without prior legal
\nprocess.<\/p>\n
Emil said the indiscriminate closure of the factory would
\ntaint the image of Indonesia in the eyes of investors and would
\nfurther discourage foreign investment.<\/p>\n
\"A legal decision proving the company has caused environmental
\ndamage is required to close down Indorayon's factory,\" Emil was
\nquoted by Antara as saying in the North Sumatra capital of Medan
\nafter delivering a speech at a ceremony to install new board
\nmembers of the Association of the University of North Sumatra's
\nManagement School Graduates.<\/p>\n
The former minister of environment noted that the government
\nwas in the process of trying hard to woo back investors to the
\ncountry to revitalize the country's economy, which has been
\nbattered by the protracted economic crisis.<\/p>\n
He said foreign investors were watching whether the new
\ngovernment of Indonesia would deliver on its promise to uphold
\nlaw enforcement.<\/p>\n
\"By conducting a legal procedure in dealing with the case of
\nIndorayon's factory, Indonesia will demonstrate to the
\ninternational world its seriousness in upholding law
\nenforcement,\" he said.<\/p>\n
Emil said the ministries in charge of industry and trade,
\nforestry and plantations, and agriculture had to prove in a court
\nof law that Indorayon was at fault.<\/p>\n
With regards to the demand of local people for the closure of
\nthe factory, Emil said he hoped the company and the local people
\ncould settle their dispute in talks mediated by the local
\ngovernment.<\/p>\n
Minister of Environment Sonny Keraf recommended last month
\nthat the Indorayon factory be closed, citing the alleged
\nenvironmental damage caused by the company.<\/p>\n
The Porsea factory, which commenced operations in 1989, has a
\nproduction capacity of 240,000 metric tons of paper pulp in
\naddition to 60,000 tons of rayon fiber a year.<\/p>\n
Local non-governmental organizations such as Friends of the
\nEarth Indonesia and the Lake Toba Heritage Foundation supported
\nSonny's recommendation, saying the decision should have been made
\nyears ago.<\/p>\n
But several top officials, including Minister of Trade and
\nIndustry Jusuf Kalla, State Minister of Investment and State
\nEnterprises Development Laksamana Sukardi as well as Director
\nGeneral of Chemical, Agricultural and Forestry Industries Gatot
\nIbnusantosa insist that Indorayon could not be shut down without
\na court decision.<\/p>\n
Indorayon's management itself has been calling for the
\ngovernment to hold a meeting to discuss the problem, together
\nwith other concerned parties, as a preferred resolution process
\nbefore bringing the case to court.<\/p>\n
President Abdurrahman Wahid promised late last month to find
\nan amicable way to resolve the problem while upholding the rule
\nof law.<\/p>\n
Indorayon has been under fire since 1998 when it became the
\ntarget of demonstrations of residents living near Lake Toba who
\nopposed its operations over alleged improper environmental-
\nprotection management, which reportedly resulted in bad odors and
\npolluted water and air.<\/p>\n
Environmental organizations have alleged that Indorayon has
\ncaused the water level in Lake Toba to decrease and has harmed
\nforests in the area.<\/p>\n
Indorayon holds a concession right to 269,060 hectares of pine
\nforest areas in the regencies of Dairi, Simalungun, North
\nTapanuli and South Tapanuli in North Sumatra.<\/p>\n
Indorayon is a unit of the Raja Garuda Mas Group, a
\ndiversified conglomerate controlled by local businessman Sukanto
\nTanoto.<\/p>\n
Indorayon has also floated its shares in the United States
\nthrough American depository receipts. (jsk)<\/p>",
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"sponsor_url": "https:\/\/okusiassociates.com"
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