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Indonesian government rates environmental performance of companies

JATAM Press Release, 16 October 2009

On Thursday, October 15, 2009, the State Minister for the Environment announced the results of environmental performance rankings of companies known as the Proper Rating System. JATAM - the Mining Advocacy Network- is shocked to learn that companies with a large ecological footprint operating in Kalimantan, Sumbawa, Aceh, and Papua have received blue and green rates. Unfortunately, the rating system has become a tool for greenwashing and the Ministry of Environment have become mere guardians for environmental criminals. Giving a green rate to PT. Newmont Nusa Tenggara does not make sense. The American-based company dumps 120,000 tons of tailings everyday into Senunu Bay of Sumbawa island. The total amount of tailings disposed into this bay has reached a half a billion tons. The Proper Rating System does not address the environmental concerns of the Newmont affected community. These concerns include a water crisis and the dramatic decline of fish along the Sumbawa coast they link to Newmont's mining activities. Newmont's environmental impact is expected to increase with their plans to open 38 hectares of Dodo Rinti protected forest for an expansion of their mine. By failing to address the reality of the environmental impacts caused by this mining company, the Proper Rating System is prolonging environmental crimes in Sumbawa.

JATAM is also perplexed with the rewarding of the PT. Freeport gold and copper mine with a blue rate. Freeport is widely known for their
environmental abuses. More than 1.8 billion tons of tailings have been disposed by this company into rivers and seas in Indonesia. The State Minister of Environment feels that PT. Freeport has compiled with the country's environmental regulations but their environmental crimes are not disputable. There is a high degree of poverty suffered by Amungme and other tribes in Papua's central mountains. The forest have destroyed on the Etsberg and Grasberg mountains by PT. Freeport. Everyday, 220,000 tons of tailings are generated and disposed into the local ecosystem by this company affecting the lowlands, Ajkwa river estuary and mangrove forest. Freeport enjoys full support from Proper and the State Minister of Environment, Rahmat Witoelar, while Papua's ecosystems and people suffer.

PT. Kaltim Prima Coal (KPC) is another company receiving a "green" rank. Abu Rizal Bakrie, a prominent business man and leader in the Golkar political party, owns 65% of KPC's stocks. How a huge coal extraction operation is able to receive a "green" rating is ridiculous. KPC's operations have ruined the rivers of Bengalon, Sengata and Sekerat. The three rivers in East Kutai District of East Kalimantan support hundreds of thousands of people. KPC's activities have caused floods and hardship for the local people. The land appropriation and environmental damage has also resulted in systematic poverty. At least 45% of the poor people in the East Kutai District live near KPC.

The three above cases are only a few of the many companies receiving a notable rank by Proper in 2009. “Proper is a portrait of failures of State Minister of Environment’s program and Rahmat Witoelar as the Minister. This program has no clear criteria and clearly does not benefit the environment. This ranking program must be stopped since it is weakening environment law enforcement and becoming a tool to protect environmental crimes not the environment,” said Siti Maemunah, JATAM National Coordinator.

JATAM calls on the Corruption Eradication Commission to investigate the corruption in the Proper program. Moreover, the Proper ranking is being used by companies to get access to loans from banks and financial institutions.

JATAM also calls on the Human Rights commission to similarly act and investigate the role of Proper in weakening the rights of people living near mining sites.

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Contact: Siti Maimunah, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

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