Foreign investment

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.

Down to Earth No. 47, November 2000


The past months have seen unprecedented direct action by local people and mine workers protesting against injustice at Rio Tinto's PT KEM and Kaltim Prima mines.

In April and May this year, Rio Tinto's Kelian gold mine was forced to shut down after negotiations with local community representatives were broken off. Hundreds of Dayak villagers blockaded access to the mine, preventing supplies of lime (used to treat acid waste) and diesel fuel oil getting through to the mine site on the Kelian river.