Fri, 30 Oct 1998

Indorayon resumes operations

JAKARTA (JP): Publicly listed PT Inti Indorayon Utama's pulp and rayon mill near Lake Toba in North Sumatra resumed operations on Thursday after almost four months of closure due to security disturbances by protesters who accused the company of damaging the local environment.

Indorayon's finance director David Pile confirmed that 17 trucks began hauling supplies and materials to the mill on Wednesday under security guard surveillance. More trucks arrived at the plant on Thursday without any disturbances.

"We have to be in operation for four to five weeks before the government-appointed independent audit team begins its work in our industry," Pile said.

The company was forced to stop production in early July after local protesters blocked the main access roads to the plant, thereby disrupting the deliveries of supplies.

But the North Sumatra governor allowed the plant to reopen last Tuesday in preparations for the audit team to start work.

The report of the independent audit team will determine the fate of the Indorayon plant, which has annual capacities of 240,000 tons of pulp and 60,000 tons of rayon fiber.