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Activities continue at Semen's Rembang factory despite ruling
Jakarta Post - October 25, 2016
Semen Indonesia, the nation's largest cement producer, claims to have not yet been informed about details of the court ruling, hence its continuation of the construction of the Rp 5 trillion (US$384.6 million) factory that will be crucial for the company's production amid increasing competition.
"Construction is still ongoing," Semen Indonesia corporate secretary Agung Wiharto said last week. "If everything goes well, the factory can do a trial run next month and operate commercially in January."
The court handed down on Oct. 5 its decision to invalidate the Rembang factory's environmental and mining permits, which the Indonesian Forum for the Environment (Walhi) and environmentalist Joko Prianto objected to. The parties claimed the project would destroy the karst ecosystem in the area.
The Rembang factory will add 3 million tons capacity per year for Semen Indonesia, which currently has 32.3 million tons annual capacity. Agung argued the firm had been building the factory with legal permits since 2014 and finished procurement of 50 hectares for the factory and 300 ha of karst area.
"The karst is not a conservation area and it does not function as farmland. We won't damage the waterways in the area as we're building water storage and pipes for the people and will create greenbelts that will actually develop the economy there," he said.
The firm is planting teak and mahogany to fertilize the soil for the farmers to plant onions, chili and others, Agung explained.
"Every year, only less than 10 ha of the karst area will be used so it's up to the locals to use the remaining 290 ha. Once each 10 ha is done, we'll mix it with soil so people can farm in it," he went on to say.
The firm has allocated Rp 55.5 billion since 2014 to develop the greenbelts, water storage and education for locals, Agung claimed.
Walhi campaign head Khalisah "Alin" Khalid is disappointed with the factory's progress, saying: "They need to obey the court's decision. Construction needs to stop". "Karst areas are essential for natural water storage and we need to practice early prevention of damage," she added.
Earlier in April, nine female farmers from Kendeng, an area in Rembang, encased their feet in concrete in front of the State Palace, demanding that the President halt the project as it could harm the environment and livelihood of farmers.
Separately, Industry Minister Airlangga Hartaro has showed support for the ongoing construction of the factory. "The most important thing is that they have secured the permits and are ready to operate in November," he said after meeting with Semen Indonesia last week. "The government will keep pushing this. This is a big investment from a state-run enterprise."
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