Indonesian Political, Business & Finance News

Govt allows pulp plant to continue operations

| Source: JP

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.

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