The planned exploitation by a mining company of a gold deposit at a protected forest in Banyuwangi has met mixed reactions from local people and elites.
An alliance of NGOs and locals have pressed the local government and regency provincial legislative council to revoke the recommendation supporting the mining activities.
A civilian militia and those living around the mining site, however, have warned the government of negative impacts to the investment climate if the mining contract given to PT Indo Multi Niaga (PT IMN) is revoked.
IMN, which won a mining contract from the government in 2004, is planing on mining after conducting a year-long exploration of the site under the recommendations of the provincial and regency authorities in 2007.
During the exploration, which was conducted concurrently with an environmental impact study (AMDAL), the company detected an abundance of gold deposits at Tumpang Pitu protected forest in Pancer, Pesanggaran.
The company then decided to prepare for exploitation of the site, which should contribute to locally generated income and employ local workers.
Last week, thousands of people, activists and students staged a demonstration at the town, demanding local authorities annul the recommendation and propose the central government review the mining contracts. They said mining would have disastrous effects on locals and the environment.
The demonstrators, mostly fisherman, said poisonous waste would contaminate Blambangan Bay in the same way that gold mining conducted by PT Newmont Minahasa in North Sulawesi had contaminated waterways.
Blambangan Bay is surrounded by many districts, including Purwoharjo, Rajegwesi and Muncar, the second largest fish supplier after Bagan Siapi-api in Riau.
"The mining activities will certainly bring about more negative impacts to the environment and society than positive impacts," said Lukman Hakim, from the Forum for Indonesian Environment (Wahli), which joined the anti-gold mining demonstration.
By polluting the seawater in Buyat, North Sulewesi, Lukman said, Newmont Minahasa was killing the fish in the area and risking local residents' health.
He said parts of the regency would face a water crisis if the company went ahead with its plan.
The mine will consume a large amount of water, he said, adding that local residents still depended on groundwater.
"Besides polluting the seawater, the mine will deny local people's access to groundwater and affect farming in the districts of Pancer, Rajegwesi, Grajakan, Sendang Biru, Puger and Muncar, which depend on rainfall during the rainy season."
Adi Sungkono, coordinator of the Alliance of People Caring for Banyuwangi Mining and the Red-white Front (LMP), dismissed the rejections based on groundless accusations, saying the company should be given chance to prove its performance in accordance with the mining contract to generate jobs for locals and to accelerate economic development in the area.
"If the company is proven guilty of polluting the sea and raise more social problems to locals, we will stand behind the anti-mining groups to demand the mining be terminated."
He said all sides should respect IMN's mining contract to help create a conducive investment climate in the province.
Because more people have started to demand for the termination of mining activities in the region, the regency legislative council revoked it recommendation for the mining company last week, urging the regent follow suit.
Wahyudi, the deputy chairman of the legislative council, presided over a plenary session in response to the increasing demand. Wahyudi urged the central government to review IMN's exploration permit, which is valid until July, 2009. (fin)
