The Guardian, Wednesday March 12, 2003
BP panel warns of risk to human rights in Indonesia
Terry Macalister
BP has been warned by a panel of experts led by the US senator, George Mitchell,
that it could trigger human rights abuses if it proceeds with a $2bn gas scheme in
Indonesia.
Concern centres on the role of the military which could be brought in to guard the
Tangguh LNG facilities to be built in the Papua region.
Senator Mitchell's team is also worried that an influx of 5,000 construction workers
next year could bring HIV and other infectious diseases to local villagers.
There is also the potential for BP to damage the local economy - which is based on
shrimp fishing - and be viewed as a de facto alternative government there. The
immediate area is a large, untouched bay containing possibly the world's largest
mangrove forest.
Despite this, the American politician, who helped broker the Belfast peace accord,
said yesterday the massive financial benefits of the scheme outweighed the problems.
Around $225m (£140m) annually could flow from Tangguh to the local government and
villagers are campaigning for advance funds.
"There is enormous potential for good but also a potential for an adverse effect, and
this must be handled carefully," explained senator Mitchell at a first public briefing
since delivering a report to BP.
BP established the panel last year and is keen to avoid the kind of difficulties that
have intermittently closed ExxonMobil's operations in Aceh province.
Another adviser, the Reverend Herman Saud, said there was among many Papuans
widespread "distrust and fear" of the army.
"This was caused by experiences in Freeport McMoRan [gold and copper mining
operation] where many Papuans were treated inhumanely," he said.
Experts have advised BP to establish a local, community based security force so
military involvement can be kept to outlying areas. The report, commissioned by BP
chief executive Lord Browne, says: "BP must avoid the extremes of becoming too
closely associated with the TNI [the army], that is, being used as a weapon by
political forces against the TNI.
"The panel believes that an early understanding with senior security, military and
police officials is the best way BP can implement some form of community based
security and avoid surprises or unwelcome demands." The report argues BP should
avoid any requests for direct financial support being made to the military and suggests
the oil company should consider helping to modernise the local fishing fleet to
mitigate any "dislocations".
Guardian Unlimited © Guardian Newspapers Limited 2003
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