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NGOs up pressure on forest mining

Source
Jakarta Post - July 17, 2004

Rendi A. Witular and Fabiola Desy Unidjaja, Jakarta – A coalition of non-governmental organizations (NGOs) has vowed to continue its campaign against 13 mining firms that have been allowed to resume open-pit mining in protected forests, upon a controversial government regulation in lieu of law (Perpu) endorsed by the House of Representatives.

The coalition alleged the House made the decision in response to pressure from foreign governments, and that several government officials and legislators had taken bribes to further the interests of certain parties.

Longgena Ginting, executive director of the Indonesian Forum for the Environment (Walhi), told The Jakarta Post on Friday that aside from taking legal recourse against the regulation, the coalition would also mobilize local communities to disrupt the firms' operation "in order to protect the forest and the local environment". The coalition is to file a complaint with the Constitutional Court, the State Administrative Court and the District Court in an effort to have the regulation annulled.

The House voted 131 against 102 during a plenary meeting on Thursday in favor of enacting Government Regulation in Lieu of Law No. 1/2004, which allows 13 mining firms to resume operations in protected forests.

Government Decree No. 41/2004 was issued in May to facilitate the then-pending regulation, as the government deemed the concerned firms serious in their threats to take their cases to the international arbitration court.

At least 150 mining firms were obliged to stop operations over the past few years following the 1999 Forestry Law, which bans open-pit mining in protected forests.

Longgena said the government's hand was forced primarily by pressure from the Australian government, which held 12 closed-door meetings with high-ranking officials before the regulation was issued in March. "The government and legislators have sold out," she said.

Australian Embassy spokesperson Elizabeth O'Neill told the Post that several meetings between Australian and Indonesian representatives had indeed taken place, but dismissed the allegation that they were not transparent.

She said Australia had been concerned for some time about the impact of the 1999 Forestry Law on Australian mining firms operating in the country, as many of them had signed contracts with the government prior to 1999 to develop mineral resources and had already made significant investments.

Meanwhile, Longgena also said the coalition suspected several legislators of taking bribes prior to the start of the House plenary session to vote on the regulation, when several State Secretariat officials had been seen lobbying the legislators.

"We haven't any strong evidence yet. But it is suspicious, because some legislators who strongly opposed the regulation during the House special committee meeting ended up approving it at the last minute," said Longgena.

As previously reported, the majority of legislators on a special committee tasked with deliberating the regulation had strongly opposed the regulation and pledged to reject it during the plenary session.

Deputy State Secretary Erman Radjagukguk denied his office had arranged any bribes to procure legislators' votes. "This matter does not concern us. You should ask the relevant ministries over the allegation," said Erman, indicating the Ministry of Energy and Mineral Resources and the Ministry of Forestry.

Meanwhile, director general of geological and mineral resources Simon Sembiring told the Post the regulation was expected to spur new investment of about US$17 billion for the next three years, not only in the mining sector, but also in other areas.

The country would also enjoy benefits in annual revenue of about $400 million drawn from taxes and royalties, he added.

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