Jakarta – The Indonesian government has shut down polluting pulp maker PT Inti Indorayon Utama (JSX: INRU) in Porsea, North Sumatra, pending a permanent settlement of its case by an arbitrator, an Indonesian environmental activist said.

Indonesian Forum for the Environment (Walhi) chairwoman Emmy Hafild quoted President Wahid's as saying "The plant was closed down to accommodate objections from the local population. But the closure is not final because an arbitrator will take up the case and issue a ruling on the issue."

Emmy met the president with a delegation from the Porsea community. The president had said he had decided to submit the INRU question to an arbitrator after some of his cabinet gave opposing views on it.

Environment Minister Sony Keraf wanted the government to close down the company permanently, while Industry and Trade Minister Yusuf Kalla and State Minister for Empowerment of State Entreprises Laksamana Sukardi insisted on bringing the issue to a legal institution.

During the meeting with Wahid, the Porsea community delegation expressed support to Minister Keraf's stand. It also reported that since the plant was closed, the local people had been able to resume their normal agricultural and farming activities. The pulp-maker has caused grave environmental damage in the region where it operated.