Indonesian Political, Business & Finance News

VP queries critics of Newmont probe

| Source: REUTERS

VP queries critics of Newmont probe

Critics are applying a double standard to Indonesia over its
pursuit of an environmental case involving the world's largest
gold miner, Vice President Jusuf Kalla said on Thursday.

The United States Embassy in Jakarta as well as various
business groups have criticized Indonesia's handling of pollution
accusations against a unit of Denver-based Newmont Mining Corp.

Five Newmont executives -- one American, an Australian and
three Indonesians -- were detained for weeks over the matter and
their movements are still restricted while prosecutors decide
whether to formally charge them.

The U.S. Embassy had called the detentions inappropriate,
saying Newmont was already cooperating fully with the
investigation, and suggested the action could harm the investment
climate in Indonesia.

Asked if he thought the detentions were bad for Indonesia's
image, Kalla said: "I think it is wrong for people to protest.
Foreigners want us to enforce the law. When the government
enforces the law, they say it's wrong. So, which one is right?"

"In the United States and other places, people who violate
environmental laws will go to jail. So, it's a double standard,"
the former businessman said.

Environmental groups and some villagers living near Buyat Bay
on Indonesia's Sulawesi island say waste dumped in the bay by
Newmont's Minahasa Raya mine contained pollutants that were
contaminating the food chain and causing health problems.

Newmont has vigorously denied such charges and said it
consistently followed Indonesian government rules. A series of
reports on pollution levels in the bay by company, government,
and independent teams have produced varying results that have
been subject to different interpretations.

Industry groups have agreed with the U.S. embassy that the
handling of the case could be an impediment to much-needed
foreign investment. Environmental organizations say Indonesia has
often been lenient about polluters in the past and the case
should be vigorously pursued.

"Indonesia is in a tough position," said Kalla. -- Reuters

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