Fri, 26 Feb 1999

Plan to import clay from Singapore revoked

JAKARTA (JP): An Indonesian company's controversial plan to import discarded clay from Singapore has fallen through after the Singaporean government refused to allow an exporting firm to conduct the business.

Riau Deputy Governor Rustam S. Abrus announced the cancellation of the plan on Wednesday, Antara reported.

Rustam said locally obtained sand could be used by the importing company, PT Media Kertaraharja, if it insisted on carrying through with the project to restore the province's Pelambung and Karimun bays and Nipah island near Batam.

"We have sand and the price is cheap, please make use of it if the company truly wants to rehabilitate mangrove plants or to reclaim the coral reef," Rustam said in the provincial capital Pekanbaru.

He claimed the provincial administration from the beginning opposed the plan due to fears the clay could contain toxic substances.

Controversy surfaced last year when State Minister of Environment Panangian Siregar recommended the plan, characterizing it as purely a business deal.

Media Kertaraharja is linked to a foundation under the office of the coordinating minister of political affairs and security.

Its director claimed last year it would obtain Rp 100 billion in foreign exchange from its Singaporean partner if it imported the clay, reportedly from the island-state's Mass Rapid Transport project.

Environmental activists and the local community and government balked at the plan.

Antara also reported the cancellation would affect a similar plan of clay importation from Singapore by PT Asenusa Putera Sekawan. The company said it also wanted to reclaim Nipah island near Batam as the site of a tourist resort.

No information was available on Asenusa's owner.

Rustam conceded the provincial administration gave recommendations to the investor planning to reclaim the areas, adding "it was just a site permit ... but it does not mean the company can use imported waste from Singapore".

In a related development, South Sumatra Governor Rosihan Arsyad separately said the province was ready to import the clay from Singapore.

Head of South Sumatra's Regional Impact Management Agency (Bapedalda) Buchori Marlan told journalists in Palembang on Wednesday a laboratory test was being conducted in Jakarta to determine if the material was toxic.

"We are waiting for the results," he was quoted as saying.

If subsequently proven nontoxic, the provincial administration would ask permission of the provincial legislature and Bangka regency legislature to allow the importation.

The clay would be used to fill excavations left from tin mining by PT Timah in Bangka.

The news agency also reported that Rosihan said the local government would receive S$1 per cubic meter of clay. (aan)