Jakarta – Hundreds of students the North Sumatra legislative assembly yesterday to demand the final closure of a factory operated by pulp and rayon fiber producer PT Inti Indorayon Utama.

The protest came as regional parliamentarians in Medan, northwest of Jakarta, were discussing whether to close down the company's main mill, which has been blamed for causing environmental damage to nearby Lake Toba. The picturesque lake is a major tourist attraction.

Indorayon's operations were suspended last year pending a decision on whether it should be allowed to continue operations after a series of protests, some of them violent.

About 500 students, chanting "close down Indorayon", stormed the North Sumatra parliament building and occupied the room where legislators were meeting. There were no security forces in sight and most of the parliamentarians fled the meeting room.

Environment Minister Soni Keraf has recommended the closure of Indorayon's plant, located in the town of Porsea. "There is no other way but to close down the mill as recommended by the environment minister," said Effendy Panjaitan, an environmental activist. "If the government forces the opening of the mill then there will be a revolution," he said.

The mill was unable to operate from July to November 1998, and was shut down again in late January 1999, following protests. The company has been resisting moves to close the plant.