Govt allows pulp plant to continue operations

The Jakarta Post, Jakarta

Despite continuing protests from the local people, the government decided on Monday to allow the controversial pulp plant of PT Toba Pulp Lestari in Porsea, North Sumatra, to continue operations pending the establishment of a team to review the possibility of reopening the rayon plant.

In a limited Cabinet meeting on Thursday, President Megawati Soekarnoputri said that it would be wise for the government to conduct an overall overview regarding the presence of the plant before deciding whether to suspend or continue its operation.

"The team is under the Ministry of Trade and Industry, which will immediately conduct field observation," State Minister of Communications and Information Syamsul Mu'arif said after the meeting.

The company was earlier named PT Inti Indorayon Utama, which produced pulp and rayon in Porsea district.

Due to public pressure and environmental considerations, former president Abdurrahman Wahid closed the rayon plant, but allowing the pulp mill to operate under the new name.

However, the decision failed to quell opposition from the local community. They claim the plant has caused many diseases among the local people and serious environmental damage.

The plan to reopen the rayon plant has provoked further violent protests from the local people and forced hundreds of residents to flee the area.

Earlier this week, New York-based Human Rights Watch accused the pulp company of violating human rights in its efforts to end the people's protests.

Syamsul said that the President wished to see a complete report before making any decision regarding the controversial plant.

"The report should cover all aspects, including the environmental and social impact of the plant," the minister remarked.