Indorayon to improve ties with locals
Indorayon to improve ties with locals
JAKARTA (JP): Publicly listed pulp and fiber rayon firm PT
Inti Indorayon Utama pledged to fulfill the local community's
aspirations and other social and environmental aspects in its
future mills operations.
"The company and its investors acknowledged the need for a
trusting relationship with the local community so that Indorayon
can continue its operations in harmony with the environment and
in partnership with the local community so that all will
benefit," a company statement received on Thursday said.
It said it was committed to ensure that on recommencing
operations, the business would be conducted in an environmentally
and socially friendly manner in compliance with the laws of
Indonesia.
Indorayon said it would seek to be a "good corporate citizen"
and ensure good social relations with surrounding communities.
Indorayon is currently preparing to reopen its controversial
pulp mill in Porsea, North Sumatra, following the Cabinet's
decision in May to allow it to reopen the mill for a minimum one-
year period.
Discussion with local communities to seek a mutual resolution
prior to the actual recommencing of the mill's operations is
still active, the company said.
Local students, community groups and NGOs have continued
expressing their opposition to the government's decision to allow
Indorayon to reopen the pulp plant.
Indorayon said in response to the demands of the local
community, it had agreed to certain principles which it
considered essential in indicating its good faith to resolve
outstanding grievances and various local aspirations.
The company said priority was given to creating business
partnerships in the local community which would take the form of
localizing services and supplies where feasible.
"This will also involve activities such as logging operations,
the trucking of wood and raw materials into the mills, localizing
supplies such as food for the workers," the company said.
It said it agreed to make some changes in its management in
conformity with Indonesian law to help facilitate the
implementation of the local community's aspirations.
The company also agreed to form a foundation dedicated
especially to the development of the local community in line with
the latter's needs and aspirations.
The foundation will be funded through the contribution of one
percent of the cash costs of production at the Porsea facility
and through a contribution by foreign investors in Indorayon.
Indorayon's pulp and fiber factories have been on halt since
mid-1998 when the then president B.J. Habibie decided to suspend
the plant's operations following prolonged protests from local
residents over alleged environmental damages.
The government said in May Indorayon could reopen the pulp
mill, but must keep its 60,000 ton capacity fiber plant closed
pending an environmental audit to be performed by the government.
The company earlier said the pulp plant was expected to reach
its full production capacity of 240,000 metric tons of paper pulp
per annum in three months after recommencing operation.
Indorayon is listed on the Jakarta Stock Exchange and the in
the United States through American depository receipts. (cst)