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INDORAYON: Media coverage on Indorayon problemacy October 7, 1998 : House commission wants to close down Indorayon National News Jakarta, Oct 7 (Antara) - The House of Representatives' commission on industry and trade has said it will press for the closure of PT Inti Indorayon Utama which has been polluting a lake and damaging forests in North Sumatra. The commission's chairman, Marzuki Ahmad, in a hearing with State Minister for Environment Panangian Siregar here Tuesday, called for the setting up of a team of government officials and legislators that will inspect Indorayon's activities, and observe the pollution at the Wanagon Lake and the damages on forests in Tapanuli Utara district. Ahmad said some members of the commission have also questioned the government's stance on Indorayon. Siregar meanwhile said the government would stick to its plan to relocate Indorayon's pulp mills from Tapanuli Utara. As the hearing went on, a group of people staged a rally outside the legislative building, raising banners and demanding the government to close down Indorayon's pulp mills.
October 7, 1998: APRIL says Indonesia comments surprise Singapore, Oct 7 (Reuters) - Asia Pacific Resources International Holdings Ltd (APRIL) said it was surprised at orders from an Indonesian minister that a subsidiary must move plants in the Porsea area of North Sumatra. In a statement distributed to members of parliament at a hearing on Tuesday, Environment Minister Panangian Sirear said APRIL subsidiary rayon and pulp company PT Inti Indorayon Utama (IIU) must move its plants in the area. "IIU's plants must move and not be located in Tapanuli region, North Sumatra,'' he said. The minister said the operations had caused environmental damage to forests, hills and a lake. APRIL said in a statement sent to Reuters on Thursday that it was surprised at the comments. It said the minister's remarks followed a series of meetings IIU had with members of the local community and various government departments. It was decided then "that an independent audit committee would be appointed to conduct a total audit of Indorayon's business operations, including its environmental and community development programmes.'' The Porsea operations would have to run for at least three to six months for the audit to gather accurate data, APRIL said. That decision had been communicated to the government and an order for IIU to be shut down "would appear to be in contradiction to the due process'' agreed on, APRIL said. It also said no warnings of environmental licence contravention had been received by IIU. IIU's Porsea operations have been disrupted since June after segments of the local community prevented access to the mill and stopped deliveries of supplies and raw materials.
October 19, 1998: Indorayon workers rally in Indonesia MEDAN, Indonesia, Oct 19 (Reuters) - Thousands of workers from rayon and pulp firm PT Inti Indorayon Utama (IIU) rallied for a fifth day on Monday outside the provincial governor's office in the North Sumatran capital Medan, demanding job security. Around 4,000 workers massed outside the office, with some scaling the roof to shout slogans. Fresh protesters arrived in trucks to join workers who have been holding a vigil outside the office. Indonesia said earlier this month that IIU, a subsidiary of Asia Pacific Resources International Holdings Ltd (APRIL) (NYSE:ARH - news), must move its plants from the Porsea area of North Sumatra due to alleged environmental damage. The protesting workers demanded clarification from the government on the fate of their jobs and of the plants. North Sumatra Governor Rizal Nurdin said he could do nothing to resolve the issue. "The Indorayon case cannot be decided by the Medan regional office because it has become an international case which can only be decided by the president,'' he said. APRIL has said it was surprised at the order to move its plants. It said the order breached earlier agreements with the government.
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