Fri, 26 Mar 1999

Toba activists respond to business concerns

JAKARTA (JP): The business community should accept the need for industries to be environmentally friendly, an executive of a foundation focusing on Lake Toba in North Sumatra said.

Midian Sirait from the Foundation of Lovers of Lake Toba was responding on Tuesday to concerns the temporary closure of the pulp and rayon mill, PT Inti Indorayon Utama, in Porsea, North Sumatra, could affect foreign investment confidence.

On Monday, the Jakarta Stock Exchange suspended trading company shares, following President B.J. Habibie's order to interrupt operations.

An independent audit team, comprising environmental and health experts, will evaluate the impact of Indorayan's operations on the local environment.

"In the short run, businesses may be affected," Midian told The Jakarta Post.

"But we have been informed that people in the United States and Europe consider it a good thing to have industries closed down if the surroundings are harmed."

The foundation, set up in 1995, has prominent members, including North Sumatra Governor T. Rizal Nurdin. It's mission is to rehabilitate damaged environment around Lake Toba, a favorite tourist destination.

Calls for the closure of Indorayon involved violent clashes between locals and employees. The latter claimed their jobs were threatened, while residents complained that the mill was an environmental health hazard.

Midian said the Indorayon case was only one of many foundation concerns.

"We have also educated residents and hotels against throwing unprocessed waste into the lake," he said, adding that the Batak ethnic group no longer adhere to traditional prohibitions on throwing waste into the lake.

The United Nations Educational, Scientific and Cultural Organization (UNESCO) is also exploring possibilities to establish Lake Toba as a World Heritage Site.

Given the lake's water reservoir potential "we must preserve the water catchment area for surrounding forests".

Disappearing forest in the area has also been blamed on the rayon and pulp producer.

On Monday, analysts said the decision to temporarily close the plant could backfire on Indonesia's efforts to overcome the economic crisis.

Environment laws rule against environmental damage but observers say the ruling is poorly implemented.

Midian said Indorayon and other businesses should relocate, if necessary, but continue their operations in an environmentally friendly manner.

"We need to preserve our environment for the sake of the next generation." (anr)