Foreign investment

Down to Earth No. 47, November 2000


Mining companies are lobbying to change legislation which prohibits open-pit mining in areas designated as protected forests.

"Forest lands can only be used for development needs other than forestry in Protection and Production Forest areas . . .  No open-pit mining is permissible within Protection Forest areas." 
(Article 38, Forestry Law 41, 1999)

Indonesia's new forestry law, passed last year, prohibits open-pit mining in forests classified as 'protected forests'.

Down to Earth No. 47, November 2000


Newmont, the US-based mining company, has again come under fire at both its operations in Indonesia.

In North Sulawesi PT Newmont Minahasa Raya (80% owned by US mining giant Newmont) was forced to shut down operations at its Ratatotok gold mine three times in as many months. Former land-owners mounted a series of blockades an demanded compensation for land taken over by the company.

Down to Earth No. 47, November 2000

Natural resources are one of the main factors underlying the independence struggle in Aceh, but decades of plunder have left them severely depleted.

The brutal murder of the internationally known Acehnese human rights activist, Jafar Siddiq Hamzah, reminded the world in September that the northern-most tip of Sumatra remains a dangerous place. Despite a 'humanitarian pause' signed by Indonesia and Acehnese independence leaders in June this year, the murders, disappearances and torture have continued.

Down to Earth No. 47, November 2000

 

In Brief...


No more forest conversion until forestry plan in place

The forestry ministry has said there will be no further conversion of natural forests for at least two years until a national forest management programme has been approved.

Down to Earth No. 46, August 2000

Another major obstacle to the sustainable management of natural resources is the continuing prominence of the military in many regions. Its continued high profile role from province to village level means that it is a potent threat to the success of regional autonomy, where 'success' means managing local resources sustainably, sharing benefits equitably and respecting human rights.

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.

Down to Earth No. 45, May 2000

Opposition is mounting to large-scale mining in Indonesia as communities speak out about its effects on their lives and the environment, but foreign companies are warning the Wahid government not to change the contracts they signed during the Suharto regime.

Indonesia's foreign-dominated mining industry is on the defensive.