Indonesia

Indonesia has great natural wealth but many of its citizens live in extreme poverty. Democratic progress has been made since the resigation of former president Suharto in 1998, but many civil society organisations feel that far too little progress has been made towards sustainable management of the country's resources, and ensuring that Indonesia's diverse communities have a real say in decisions which affect their future.

MPR passes decree on agrarian reform and natural resources

Down to Earth No 52 February 2002

In November Indonesia's highest legislative body, the Peoples' Consultative Assembly (MPR), passed a decree which provides the legal framework for the reform of laws relating to the and natural resources management.

Decree No. IX/MPR/2001 on Agrarian Reform and Natural Resources Management acknowledges the weakness of existing laws and the resulting conflicts.

BP's coal interest: Kaltim Prima

Down to Earth No 52 February 2002

BP currently joint owns and manages Indonesia's biggest coal mine. It has 50% of the shares in PT Kaltim Prima Coal (KPC), a massive open cast mine near Sangatta, East Kutai district, East Kalimantan province. The Anglo-Australian mining giant, Rio Tinto, owns the other 50%. KPC is currently embroiled in a power struggle with the local authorities as, under the initial agreement, this foreign-owned company must sell off 51% of its shares to Indonesian parties [1].

Rio Tinto's Kelian mine blockaded

Down to Earth No 52, February 2002

East Kalimantan's Kelian gold mine, operated by Anglo-Australian mining multinational Rio Tinto, was forced to cut production in January when four former employees blockaded an access road to the site.

Exxon Mobil under fire

Down to Earth No 52, February 2002

Recent attacks against oil and gas company Exxon Mobil in the war-scarred territory of Aceh have brought security concerns to the fore again, as Megawati's government struggles to convince investors they should bring their money back to Indonesia.

No sign of much-needed reform

Down to Earth No 52, February 2002

As M. Prakosa settles into his job as Indonesia's fourth forestry minister in four years, the direction of forest policy is becoming clearer.

Forestry minister Prakosa made it clear from the start that he did not intend any immediate radical changes. In the hand-over ceremony from Marzuki Usman, he pledged to build on the foundations laid down by his predecessors rather than introduce new programmes.

APP and debt-financed forest destruction

Down to Earth No 52, February 2002

The highly-indebted pulp and paper group, Asia Pulp and Paper (APP), commissioned an environmental audit in September to allay fears over rainforest destruction in Sumatra.

In Brief... DTE 52 - February 2002

Down to Earth No 52, February 2002

West Papua will not receive Freeport's corporate tax

Last minute changes in the Special Autonomy Law have denied West Papua a share of Freeport's corporate taxes - the largest chunk of annual payments - according to The Far Eastern Economic Review. The Review says that BP will end up pumping more money into West Papua's coffers than Freeport, which has been paying Jakarta an average of $180 million a year in taxes and royalties.