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

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


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

 

In Brief...


No more forest conversion until forestry plan in place

The forestry ministry has said there will be no further conversion of natural forests for at least two years until a national forest management programme has been approved.

Down to Earth No. 46, August 2000

Another major obstacle to the sustainable management of natural resources is the continuing prominence of the military in many regions. Its continued high profile role from province to village level means that it is a potent threat to the success of regional autonomy, where 'success' means managing local resources sustainably, sharing benefits equitably and respecting human rights.

Down to Earth No. 46, August 2000

The Wahid government's emphasis on foreign investment prioritises the needs of multinational companies over sustainable, community based natural resource management

Soon after taking office, President Wahid pledged his commitment to foreign companies and declared his new government investor-friendly.

Down to Earth No. 45, May 2000

Environment minister Sonny Keraf says the fate of PT Indorayon's North Sumatra pulp mill will be decided by June at the latest. The long dispute has become another test case. How far is the Indonesian government willing to ignore community opposition to damaging projects in order to reassure foreign investors?