Foreign investment

Down to Earth No. 47, November 2000

Indonesian and foreign companies continue to profit from West Papua's resources as the military resumes its tough line with the independence movement.

Signs of a new get-tough policy in West Papua were confirmed when an estimated 3,700 additional troops were dispatched to the territory in early August. These included 1,700 troops from the mobile brigade police force, notorious for its brutal suppression of dissent. Most troops have been sent to Jayapura, Merauke and Timika regions.

July / November 2000

This is the short version of a paper prepared by Nostromo Research for Down to Earth and Minewatch Asia-Pacific, July 2000, revised November 2000.

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


There has been further conflict at indigenous mining lands inside the PT Indo Muro Kencana gold concession operated by Australia's Aurora Gold in Central Kalimantan.

Families from the local Dayak Siang, Murung and Bekumpai communities were hauled out of their beds and forced onto trucks by heavily armed mobile brigade police forces early on June 7th. Their possessions were thrown on the ground, their homes were then torn down and fifteen people were arrested.

Down to Earth No. 47, November 2000

Twenty three people were injured when police moved in to break up a protest blockade at Unocal's oil and gas terminal in East Kalimantan.

Seven protesters were injured by bullet wounds and a further sixteen were seriously injured when beaten and kicked by police, who broke up the protest on October 8th.

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

A series of official investigations into Freeport Indonesia, operators of the huge Grasberg gold and copper mine in West Papua, has done nothing as yet to curb the excessive environmental damage caused by the company.