Aulia Andri/FM & AH, Medan – The Indonesian Forum For the Environment (WALHI) is scornful of a plan from PT Inti Indorayon Utama (IIU) pulp and paper factory to give 1% of its production costs to the residents living in the factory's vicinity. WALHI considers the offer from the company, operating in the Porsea subdistrict of Toba Samosir Municipality, as an effort to re-open the factory.

Backed by WALHI and other NGOs, the residents of Porsea managed to urge the government to withdraw IIU's license in 1998. However, this year, the government plans to reissue the license. The plan immediately enraged the residents who have been fighting the company for years, and lead to an armed clash on 21 June this year, leaving one person dead and the whereabouts of 40 people unknown.

"Even if IIU gave away 50% of its stock, they [the residents of Porsea] would not accept it, because the residents have rejected its presence," Director Executive of WALHI, Effendi Panjaitan, told Detik at Legal Aid Foundation, Friday.

According to Effendi, IIU has been unrelenting in its attempts to re-open the factory at Porsea. "Well, this is how they do it. They are trying to buy the residents," said Effendi. As of today, Effendi added, the government has yet to provide technical guidelines and prerequisites that should be fulfilled by IIU, before it re-opens the factory in July. "So, those prerequisites should be made clear if IIU wants to restart operations. But one thing is for sure, the residents have objected to it [IIU]," said Effendy.

In a press release yesterday, IIU said that it will set aside 1% of its production costs, and add contribution funds from investors to generate a development program for residents living around the factory. It is planned that the fund will be managed by a foundation formed by residents, investors of IIU and local administration. IIU has also promised to attain ecolabel standards for forestry management and ISO 14000 for industrial management.

The Batak Toba tribe from Porsea, Toba Samosir municipality, have staged a rally at the North Sumatra Provincial Legislative Council on Wednesday, to demand IIU remain closed. They claim that since its establishment in 1986, the IIU operation has irreparably damaged their environment.