INDONESIA: Placer Dome eyes Borneo's forests

August 6, 2003
Issue 

JAKARTA — On July 28, the government of South Kalimantan (Borneo) and Indigenous Dayak commmunity leaders strongly denounced Placer Dome, a Vancouver- and Sydney-based mining company, for its plans for mining operations in one of the last protected tropical forests in Indonesia. Despite fierce local government and community opposition, the mining giant intends to exploit mineral deposits situated in a mountain area that has enjoyed protected forest status since 1928.

Placer Dome's operations are opposed by the South Kalimantan provincial government, which stands firm in its position against mining activities in the Meratus Mountain protected forest. Bachruddin Syarkawi, the leader of the provincial House of Representatives, has called on the national government to stop Placer Dome.

Placer Dome is seeking an exemption from Indonesian Forestry Law 41/ 1999, which bans open-cut mining in protected forest areas. In total, 136 mining companies have applied for permits from the government to mine 11.4 million hectares of protected forest areas throughout Indonesia. The national government was expected to make a decision on July 3, but so far has failed to do so. Throughout Indonesia, communities have held protests, and some 6000 citizens have sent postcards to the government supporting protected forest areas.

The Council of Dayak Meratus, representing 115 communities, issued a passionately worded letter of protest, signed on June 25, urging President Megawati Sukarnoputri to reject Placer Dome's plans because mining activities would threaten their water sources, their sacred sites and their livelihoods.

The mining industry has applied enormous pressure on Indonesia, which is desperate for international investment after a disastrous economic performance the past year. Mining companies, including Placer, have sought and received assistance from Canadian and Australian embassies in Jakarta on the matter of allowing mining in Indonesia's protected areas.

A coalition of organisations, including the Indonesian Mining Advocacy Network, the Australian Mineral Policy Institute, the Indonesian Forum for the Environment (Walhi) and MiningWatch Canada has called on the Indonesian government to uphold its environmental protection laws.

[From the Mineral Policy Institute, visit <http://www.mpi.org.au>.]

From Green Left Weekly, August 6, 2003.
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