Home › Regions › Publication: Newsletter articles › Theme: Foreign investment ›

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.

New land regulation will inflict misery

Down to Earth No 66  August 2005

Protests have greeted a new regulation on land issued by President Susilo Bambang Yudhoyono in May.

The new Presidential Regulation on Land Procurement for Public Development, (Perpres No 36/2005) permits the compulsory acquisition of land for the public good. It lists some 21 types of public development, including toll roads and telephone networks.

Constitutional Court bows to pro-mining pressure

Down to Earth No 66  August 2005

Campaigners against mining in protected forests were disappointed in July, when Indonesia's Constitutional Court ruled in favour of mining companies. Nevertheless, foreign multinationals have not got it all their own way.

Indonesia's Constitutional Court, established less than two years ago, was welcomed by many who hoped it could put an end to the arbitrary exercise of executive power.

In Brief... DTE 66 - August 2005

Down to Earth No 66  August 2005

Land of peace for Papua: a basis for rebuilding Papua

On his recent visit to the UK and Ireland, Rev. Socratez Sofyan Yoman, the President of the Alliance of Baptist Churches of West Papua, reiterated the call for peace talks to be held in West Papua. He pointed to the peace talks between GAM (Free Aceh Movement) and the government of Indonesia, which had struck an agreement including troop withdrawal and an arms amnesty for GAM, and said this should become a precedent.

Tangguh - ignoring the reality

Down to Earth No 65  May 2005

In February 2004, DTE took a detailed look at BP's controversial gas project in Bintuni Bay, West Papua. One year on, we ask how far concerns over human rights, security and local people's rights have been addressed.

The Tangguh gas extraction and liquid natural gas (LNG) installation in the Bird's Head region of West Papua got the final go-ahead from BP on March 7th. As a result, the area will experience massive social, environmental and economic changes.

Tangguh project Update 2005

Down to Earth No 65  May 2005

Status of the project

The 'final investment decision' to proceed with Tangguh came on March 7th, after many delays. The construction phase of the US$5 billion project is now expected to start in late 2005. Tangguh will be operational in 2008, with two full gas production units or 'trains' (Reuters7/Mar/05, TIAP 2004).

Indonesia's 'odious' arms debt to the UK

Down to Earth No 64  2005

Indonesia owes around US$1.76 billion to the British government. While it is true that this represents just a small fraction of the overall external debt of US$132 billion, it is still a significant sum, far outstripping, for example, the $96 million that the UK government has pledged to the tsunami aid effort.

Most of Indonesia's debt to the UK (US$1.408bn) is in the form of export credit facilities, owed to Britain's Export Credit Guarantee Department (ECGD). The ECGD underwrites Indonesian contracts with private UK companies.

New pollution study corners Newmont

Down to Earth No 63  November 2004


The latest and most comprehensive government-sponsored study into pollution at Newmont's gold mine in North Sulawesi, has linked the US-based company's mining activities to ill-health in the local community and declining fish stocks in Buyat Bay.