IIU plant closed 'only temporarily'

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.