Agreement on natural resources sought

Agreement on natural resources sought

JAKARTA (JP): Recent conflicts related to the exploitation of
natural resources have led to fears of increased clashes of
interest among investors, local communities, and the government.

In a bid to reduce the conflicts, representatives from the
business community and non-government organizations focusing on
the environment announced on Monday plans to seek an agreement on
a general rule for natural resources exploitation.

The search would be conducted through a national conference
here, scheduled for three days beginning April 23.

Dewi Motik Pramono from the Indonesian Chamber of Commerce and
Industry (KADIN) called for a "handbook" on natural resources
exploitation for investors and entrepreneurs.

She said such a handbook would "avoid cases such as PT
Indorayon Utama."

The company which produces pulp and rayon fiber in Porsea
district, North Sumatra, has been charged with creating
environmental damage. Its operations were suspended in 1998
pending results of a new audit.

On Friday lawyer Todung Mulya Lubis, the trustee of Indorayon
foreign shareholders -- who hold 86 percent of Indorayon -- said
the foreign shareholders have decided to file suit against the
government if there was no progress on the new audit.

The suit could be filed at the International Center for
Settlement of Investment Dispute in Washington, D.C. by the end
of April, he said.

On Monday's press conference Dewi said that a general
agreement should be established not only between investors and
the government, but also within the government itself.

Ministers have recently issued different statements on
problematic cases such as Indorayon and mining company PT Freeport
Indonesia in Irian Jaya.

State Minister of Environment Sonny Keraf said on Jan. 18 that
he decided to continue with the decision made by B.J. Habibie to
temporarily close PT Indorayon. The next day State Minister of
Investment and State Enterprises Development Laksamana Sukardi
said that the closure would discourage foreign investors.

Regarding Freeport, Sonny said that if necessary the contract
between the government and the company should be reviewed, while
President Abdurrahman Wahid said the contract would not be
amended.

Organizers of the planned event said such conflicts would
continue if shareholders did not make a "mutual and concerted
effort" to overcome their differences.

About 300 participants from the government, entrepreneurs,
non-governmental organizations, universities, and shareholders
will be invited to the event. (08)