Aceh-based companies go about business as usual

Aceh-based companies go about business as usual

Fitri Wulandari and A'an Suryana, The Jakarta Post, Jakarta

Amid heightened security ahead of a possible military
operation in Aceh, key companies in the restive province said on
Monday they were doing business as usual without increased
security measures.

American giant ExxonMobil, state-owned oil company Pertamina
and state-owned fertilizer and chemical firm PT Pupuk Iskandar
Muda (PIM) said they were operating normally, adding they had
coordinated with local security authorities to guard vital
assets.

"Pertamina's assets are considered the state's key industries.
Therefore, the government has already taken strategic security
measures to protect the properties," Ridwan Nyak Baik told The
Jakarta Post on Monday.

In addition to gas fields operated by ExxonMobil, Pertamina
has also its own oil fields in Kuala Simpang and Rantau in East
Aceh.

Deva Rachman, spokeswoman of ExxonMobil said the company
had not ceased production, despite the escalating tension.

However, she refused to provide details as to whether the
company had stepped up security measures in order to protect
their workers should the situation turn ugly.

"Moreover, security measures are under the authority of the
Oil and Gas Implementing Body (BP Migas), the highest authority
in the country for the oil and gas sector," she said.

The company supplies natural gas to a number of companies in
Aceh, including a natural gas liquefaction plant in Arun
belonging to PT Arun NGL Co (not belonging to ExxonMobil as
mentioned mistakenly in The Jakarta Post's front-page caption on
Monday) and fertilizer companies PT PIM and PT ASEAN Aceh
Fertilizer (AAF).

The companies are based in Lhokseumawe, the hotbed of the
separatist movement in Aceh.

While saying that no additional security measures had been
implemented, fertilizer firm PT PIM said most of its employees
had been refusing to come in for fear of being attacked on their
way to work.

PT PIM spokesman Sulaiman Porang said that on Monday, only a
handful of workers showed.

"Public transportation is not operating, and employees who
have their own cars or motorcycles are afraid to come to work,
fearing for their safety," Sulaiman said.

In order to continue operations, the company has assigned a
group of 150 workers to work at the plant. These workers are to
remain at the plant's compound until their replacement shifts
arrive.

"They have been ordered to stay at the office and are not
allowed to go home, so the plant will be operational," he said.

PT PIM has about 1,250 employees and produces 570,000 tons of
fertilizers annually, mostly urea, said Sulaiman.

The troubled Aceh province is one of the country's richest
sources of liquefied natural gas and oil, and has attracted many
foreign investors.

Increasing security disturbances in the province, mainly
resulting from armed conflicts between Indonesian security forces
and armed rebels from the Free Aceh Movement (GAM), in the past
few years have often hampered business activities in the
territory, especially in Lhokseumawe.

In 2001, ExxonMobil suspended its operation for four months
due to security worries arising from the conflict. The suspension
forced other companies, such as PT PIM and PT AAF, who relied on
ExxonMobil gas supplies, to halt their operations.

ExxonMobil resumed operations in July 2001, after the
government sent in more troops to the province to reinforce
security.

Meanwhile, Ridwan said Pertamina has coordinated with the
military to secure the distribution of fuel through conflict
areas in the province.

"The distribution of fuel through conflict areas will be
escorted by military personnel to ensure safe delivery," he said.