Tue, 03 Dec 2002

Porsea activists demand pulp firm remain closed

Moch. N. Kurniawan, The Jakarta Post, Jakarta

Porsea activists insisted on Monday that pulp and sawmill plant PT Toba Pulp Lestari remain closed due to the illness and environmental destruction it caused while it was operating.

"TPL is widely known as a polluter that caused skin itches, respiratory problems, stomach aches, foul smells and forest destruction.

"We can't understand why the government has chosen to reopen the firm; it doesn't have a heart to support local people," said Martin Sirait, chairman of Bona Pasogit non-governmental organization.

According to Martin, respiratory problems went up by seven percent after the initial operations of TPL in 1989, and itching problems doubled.

Besides, over 110,000 hectares of forest concession in protected areas have been felled, he said.

"Erosion and landslides frequently occur in areas surrounding TPL," he said.

A number of activists were arrested by police in Porsea after they held a demonstration to protest a plan to reopen the TPL plant and sawmill.

Activists who oppose the reopening of TPL include Johnson Pandjaitan of the Indonesian Legal Aid and Human Rights Association (PBHI), chemicals expert Firman Manurung and legislator Tunggul Sirait of Love the Nation Democratic Party.

Separately, member of team eleven in charge of publicizing TPL's reopening Leo Batubara said that the illness claims would no longer be valid as TPL would only produce pulp but no rayon, which had been the main cause of dangerous atmospheric pollutants.

"With the decision not to produce rayon anymore, pollution will be sharply reduced.

"TPL is the only economic opportunity for the Toba Samosir area, where most people live in poverty, for locals to earn a livelihood if we can manage it properly," Leo said.

By his calculation, TPL would be able to generate income of Rp 150 billion (US$16.6 million) per year and could employ about 1,800 people.

"We should now fight to get 80 percent of the taxes paid by the company, which have, so far, gone to the central government," Leo said.

TPL, whose previous name was PT Inti Indorayon Utama, should be given chance to operate the plant once again, to allow an independent assessor to test whether there are pollutions or not, he said.

"Then we can punish TPL and pay compensation to locals if they're proven guilty, he said.

According to him, should the government decide to close TPL down, a number of foreign investors would demand compensation of US$600 million from TPL.

Foreign investors could also file lawsuits with international arbitrators to seek compensation should the government ignore the problem.

TPL was formerly listed on the Jakarta Stock Exchange, Surabaya Stock Exchange and New York Stock Exchange.

Meanwhile, Tunggul supported a temporary halt of the company's operations until an independent auditor had carried out an audit.

"If TPL is shown to be OK, people must, step-by-step, be educated to accept TPL," he said.