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International Financial Institutions

Communities and companies

Down to Earth No 50 August 2001

Violations of community rights are still continuing as companies and regional governments try to maximise income from the country's mineral resources. At the same time, mining companies are complaining about the "legal vacuum" hampering their operations in Indonesia.

Large-scale mining in Indonesia is in 'legal limbo', as the protesting companies see it, because their contracts, signed during the Suharto era, are being nibbled away by the demands of local governments newly empowered by regional autonomy.

Oil palm investments opposed

Down to Earth No. 49, May 2001


The government's plan to expand oil palm plantations could founder because it fails to address the underlying question of community rights to farmland and forests.

Oil palm remains a central plank of Indonesia's economic recovery strategy despite growing social unrest arising from disputes over plantation land.

IFIs line up with companies to push GM crops

Down to Earth No. 49, May 2001

Biotech companies have formed powerful alliances with multilateral development banks, UN agencies, Northern governments, research institutes, large funding organisations and 'independent' agencies to promote biotech agriculture and GM seeds in developing countries.

Forest destruction fuelled by debt, poverty and greed

Down to Earth No 49 May 2001


The Wahid government is making last-minute efforts to comply with demands for forest reform agreed last year with its international creditors. Many NGOs feel these efforts will not be enough to stop the rampant destruction in Indonesia's forests. They suspect that the reform process is being driven by the priorities of the creditors who want conservation and "sustainable" management, but also debt repayment.

Export credit finances destructive, debt-laden projects

Down to Earth No. 49, May 2001


A new NGO report has drawn attention to the role of export credit lending agencies in pulp and paper mills and other projects in Indonesia, which have led to increased deforestation and abuse of people's rights.

Pulp & paper heading for trouble

Down to Earth No. 48, February 2001


The pulp industry in Indonesia is financially, socially and ecologically unsustainable, but the Indonesian government, local authorities and investors alike are failing to take responsibility.

Indonesia has prided itself on being one of the world's lowest cost producers of paper pulp. Foreign investors have supported the growth of this industry, despite its reliance on the destruction of natural forests and illegal logging for raw materials.

Foreign investment and regional autonomy

Down to Earth No. 46, August 2000

The Wahid government's emphasis on foreign investment prioritises the needs of multinational companies over sustainable, community based natural resource management

Soon after taking office, President Wahid pledged his commitment to foreign companies and declared his new government investor-friendly.