Sat, 05 Jun 1999

Minister accused of nepotism

JAKARTA (JP): The Indonesian Forum for Environment (Walhi) on Friday launched another salvo against State Minister of Environment Panangian Siregar on his decision to allow importation of waste clay from Singapore, accusing the minister of handing his son a chunk of the business.

Walhi's project officer on industrial pollution, Nurhayati, alleged a company owned by the minister's son, Martin Siregar, won the contract to import millions of cubic meters of clay excavated for the Singapore Mass Rapid Transport (MRT) construction project.

According to Nurhayati, PT Bangka Dwiwukir Lestari won the contract to import the clay to Bangka in South Sumatra.

Meanwhile, PT Media Kertaraharja, a foundation linked to the office of the coordinating minister for political affairs and security, was appointed to import 15 million cubic meters of the clay, she said.

"There are strong indications the importation of the toxic waste is full of corruption, collusion and nepotism (KKN)," she said.

To mark World Environment Day, which falls on June 5, Walhi staged a peaceful demonstration at Panangian's office in East Jakarta to protest the controversial deal. They did not meet the minister.

Walhi said Panangian had "blood on his hands" for his alleged involvement in the July 27, 1997, takeover of the office of the Indonesian Democratic Party, then led by Megawati Soekarnoputri, which provoked rioting and many fatalities. Panangian remains part of PDI, which is distinct from Megawati's Indonesian Democratic Party of Struggle (PDI Perjuangan).

Only two months after joining the Cabinet, he appointed PT Media Kertaraharja to import the clay from Singapore to rehabilitate a damaged mangrove forest in Pelambung Bay on Karimun Besar Island.

The Ministry of Trade and Industry issued an import permit for the company in September because Panangian recommended it as a "nontoxic" material.

The company boasted the country could earn at least Rp 100 billion in foreign exchange from the business. Singapore plans to excavate about 8.5 million cubic meters of clay. It is not clear whether the importation has occurred.

"Martin's company, PT Bangka Dwiwukir Lestari, won the contract to import the clay to be used in Bangka," Nurhayati alleged.

The hazardous waste will be used to fill in the huge ponds, caused by tin mining activities on the island, she said.

"It is very embarrassing that a minister awarded a business contract to his own son," she said. (prb)