IIU plant closed 'only temporarily'

JAKARTA (ANTARA): The government has shut down giant pulp maker PT Inti Indorayon Utama (PT IIU) in Porsea, North Sumatra, temporarily pending a permanent settlement of its case by an arbitrator, an Indonesian environmental activist said here.

The temporary nature of the plant's closure was indicated by President Abdurrahman Wahid to Indonesian Forum for the Environment (Walhi) chairwoman Emmy Hafild at a meeting here Thursday.

"The plant was closed down to accommodate objections from the local people. But the closure is not final because an arbitrator will take up the case and issue a ruling on the issue," Wahid was quoted by Emmy as saying.

Emmy met the president in the company of a delegation of the Porsea community.

The president had said he had decided to submit the company case to an arbitrator after some of his cabinet members gave opposing views on it.

Environment Minister Sony Keraf wanted the government to close down the company permanently, while Industry and Trade Minister Yusuf Kalla and State Minister for Empowerment of State Enterprises Laksamana Sukardi insisted on bringing the issue to a legal institution.

During the meeting with Wahid, the Porsea community delegation expressed support to Minister Keraf's stand. It also reported that since the plant was closed, the local people were able to resume their normal agricultural and farming activities.

The pulp-maker stands accused of having caused grave environmental damage in the region where it operated.