MAC: Mines and Communities

Indonesia South Sulawesi

Published by MAC on 2003-10-07

Indonesia South Sulawesi

Position Statement from Bahumontefe and Onepute Jaya

Morowali, 7 October 2003

PT INCO’s nickel exploration and exploitation all over the world has pushed boundaries of the human race. INCO operations in many parts of the world have resulted in human rights abuses, violence, environmental destruction and the displacement of the communities who live in the areas close to INCO operations. The accumulation of these infractions has resulted in sharp criticism from the NGO community, victims, and also from other sectors of community around the world.

INCO operates not only in Canada, but as PT Inco they have also expanded into some other countries, such as New Caledonia, and Indonesia. Inco has been in operation in Sulawesi since 1968, when they signed a Contract of Work, second generation, which permitted them to conduct activities for 30 years. With this permit, Inco’s total area of operation was as much as 6.6 million hectares, encompassing three provinces in Sulawesi. The centre of mining operations is in Soroako, North Luwu district, with 54.17% in South Sulawesi, 29.06% South East Sulawesi, and 16.76 % in Central Sulawesi. In 1996, PT Inco extended their contract to the year 2025.

In terms of benefits for Indonesia, the government only receives a small amount of royalties from mining. PT. INCO pays 0.015% of the price of every kilogram of nickel they extract, and the rent that is paid on their leased land is only $1 per hectare every year. The Sulawesi House of Representatives have demanded that the central Indonesian government renegotiate the Contract of Work with PT INCO.

In Central Sulawesi, PT INCO has developed a mining location in the Bahodapi Block, in the village of Bahumonte, and has created serious problems to the area. The concession area the PT INCO has is also land that was traditionally the property of the indigenous peoples of this region. Many problems with land rights have arisen, as the people of Onepute Jaya have been relocated to another location, and have lost their traditional land. The local government has chosen the relocation process, even though it has been long, and unfair. The community is demanding certificates of land ownership for the people of Onepute Jaya.

For all of the above reasons, the communities of Bahumontefe and Onepute Jaya present this position of demands to the Government of Morowali and PT INCO

1.Involve community in Inco Community Development projects

2.To grant land certificates to communities and those who have been resettled to onepute jaya
3.To involve community in the negotiation process with Inco
4.Community must be shareholders in Pt. Inco in Bungku
5.Create solutions to the community demands that have been agreed to
6.Inco must clearly state their intentions to mine

Global Demands are to:
Stop Trans National Corporation (TNC’s)

We also call for solidarity to demand:
Investigate human rights abuses in Sulawesi Territory
Statement of Demand from the Communities of Bahumontefe and Onepute Jaya

Coordinator of Action

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