Indonesian Political, Business & Finance News

Influential religious leaders oppose reopening of TPL

| Source: JP

Influential religious leaders oppose reopening of TPL

Moch. N. Kurniawan, The Jakarta Post, Jakarta

Influential religious organizations and non-governmental
organizations have expressed their support to the people of
Porsea, North Sumatra, who are opposed to the planned reopening
of pulp producer PT Toba Pulp Lestari (TPL).

Support came from, among others, the country's second largest
Muslim organization, Muhammadiyah, the Indonesian Communion of
Churches (PGI) and the New Indonesian Movement.

They said in a joint statement on Friday they supported the
people's fight against TPL, previously known as PT Inti Indorayon
Utama (IIU), because the company had caused environmental damage,
injustice and conflict.

The Indonesian Environmental Forum (Walhi) and the country's
largest Muslim organization, Nadhlatul Ulama (NU), previously
made known their support for the people of Porsea.

"TPL has caused the people of Porsea to suffer through the
decline in the quality of their environment, and they must live
with that," this latest statement of support read.

According to the statement, allowing TPL to resume operations
would cause conflict in Porsea.

Attempt to reopen TPL will only exacerbate the country's poor
condition, it read.

Muhammadiyah deputy chairman Din Syamsuddin said his
organization would ask the government to consider the demand of
the people of Porsea not to reopen TPL.

"Porsea's residents have rejected plans to allow TPL to resume
operations, as during its previous operation TPL created a trauma
of environmental destruction, conflict and injustice.

"We will send a letter to the President (Megawati
Soekarnoputri) and the relevant ministries asking them to heed
the call," he said during a media conference.

Din said Muhammadiyah would always oppose any development or
investment projects that caused environmental damage, as mandated
by Islam.

TPL's operations were suspended by the government in 1999
during the administration of president Habibie in response to
major protests by locals.

Protesters said acid rain caused by the operation of TPL had
drastically reduced rice and other crops, while toxic gases
released by the company were causing respiratory problems.

In 2000, the government gave TPL permission to resume its pulp
operations. However, the company was not allowed to resume its
rayon operations, in the hope that this would drastically reduce
pollution.

The current planned reopening of TPL is based on this 2000
decision.

Local supporters of TPL say reopening the company would
provide the local government with some Rp 150 billion (US$16.6
million) in taxes, which previously went to the central
government.

They say that should TPL remain closed, shareholders could sue
the government through an international arbitration board and
demand $600 million in compensation.

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