Identifier
Created
Classification
Origin
06JAKARTA3849
2006-03-24 00:48:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Jakarta
Cable title:  

NEWMONT BELIEVES JAKARTA-BASED GROUPS BEHIND

Tags:  ECON EMIN EINV PGOV ASEC ID 
pdf how-to read a cable
VZCZCXRO9911
RR RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHPB
DE RUEHJA #3849/01 0830048
ZNR UUUUU ZZH
R 240048Z MAR 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 1676
INFO RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION
RUEHBY/AMEMBASSY CANBERRA 9257
RUEHBN/AMCONSUL MELBOURNE 0424
RUEHPT/AMCONSUL PERTH 0431
RUEHJA/AMCONSUL SURABAYA 1304
RUEHDN/AMCONSUL SYDNEY 0750
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
UNCLAS SECTION 01 OF 02 JAKARTA 003849 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON EMIN EINV PGOV ASEC ID
SUBJECT: NEWMONT BELIEVES JAKARTA-BASED GROUPS BEHIND
SUMBAWA VIOLENCE

REF: A. A. JAKARTA 03690 (FREEPORT SEES LOOSE-KNIT GROUP)


B. B. JAKARTA 03484 (TENSION HIGH IN ABEPURA)

C. C. JAKARTA 03404 (DEMONSTRATIONS TURN VIOLENT)

D. D. JAKARTA 02492 (MINE CLOSED BY ILLEGAL MINERS)

JAKARTA 00003849 001.2 OF 002


UNCLAS SECTION 01 OF 02 JAKARTA 003849

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON EMIN EINV PGOV ASEC ID
SUBJECT: NEWMONT BELIEVES JAKARTA-BASED GROUPS BEHIND
SUMBAWA VIOLENCE

REF: A. A. JAKARTA 03690 (FREEPORT SEES LOOSE-KNIT GROUP)


B. B. JAKARTA 03484 (TENSION HIGH IN ABEPURA)

C. C. JAKARTA 03404 (DEMONSTRATIONS TURN VIOLENT)

D. D. JAKARTA 02492 (MINE CLOSED BY ILLEGAL MINERS)

JAKARTA 00003849 001.2 OF 002



1. (SBU) Summary: Jakarta-based environmental
non-governmental organizations initiated the protests that
ended in the destruction of Newmont Mining Company,s
exploration camp at Elang on the island of Sumbawa on March
19, according to Newmont executives. As a result of the
attack by approximately 50 local people, Newmont has closed
the camp and suspended indefinitely its exploration
activities in the area. Their large gold mine operation at
Batu Hijau, 60 kilometers away, remains open and unaffected.
Newmont believes that the NGOs are also involved at least
partly in orchestrating the recent protests against Freeport
and ExxonMobil. End summary.

NGO STRATEGY TO DRIVE OUT NEWMONT
--------------


2. (SBU) Newmont Senior External Relations Manager Robert
Humberson told us on March 22 that two Jakarta-based
environmental non-governmental organizations, WALHI and
JATAM, initiated recent protests against one of the Newmont
Mining Company,s Indonesian subsidiaries, PT Newmont Nusa
Tenggara (PTNNT) and its exploration camp at Elang on the
island of Sumbawa. Humberson also claimed the two groups are
at least one of the driving forces behind the recent Freeport
demonstrations (see reftels). One week prior to the March 19
attack, Humberson said a person affiliated with JATAM had
leaked to them a document that detailed a plan by WALHI
(Friends of the Earth-Indonesia) and JATAM (the Indonesian
Mining Advocacy Network) to drive PTNNT from the Elang area.
According to the document, the two NGOS hoped to use their
network of community organizers in the area to create
unrealistic expectations for financial enrichment from the
mining operation among the local villagers. Once these
inflated expectations went unmet, the NGOs reasoned that the
backlash by the local community would drive PTNNT from the

area.


3. (SBU) Newmont said it was disappointed in the local
police responsiveness, despite Newmont providing the leaked
document to them along with further information that
WALHI/JATAM had sent two local community organizers, Dedi and
Hermann, to the area around Elang to stir up the villagers.
The two community organizers had been proselytizing villagers
about 30 kilometers from the exploration camp since 6 or 7
March, according to Humberson. He added the local police
told them that they had everything under control and that
Newmont was worrying excessively. Despite these assurances,
the villagers cut the road to the camp and seized five PTNNT
vehicles on 8 March, demanding that they be treated in
financial terms exactly like the villagers immediately
surrounding the exploration camp. The villagers held the
vehicles for about a week and finally returned them on 15
March. Humberson said the local and district police
continued to maintain that they had the situation under
control.

VILLAGERS WARN OF PLANNED MARCH; POLICE DO LITTLE
-------------- --------------


4. (SBU) On or about 12 March, Humberson said they began to
hear from villagers sympathetic to the company that Dedi and
Hermann planned to organize a march of approximately 200
locals to the exploration camp, though he had no indication
that they incited the villagers to commit violence.
Humberson said they passed this information to the police,
who again took no action. On March 17, Newmont received
further information from sympathetic locals that the marchers
were arming themselves with small containers of gasoline,
information they also passed to the police. Humberson said
the police again counseled against panic but did reinforce
the number of their officers at the exploration camp from
eight to 33.


5. (SBU) Based on the lack of police responsiveness to the
vehicle seizures and their continued relative indifference to
the information about the planned march, PTNNT decided to
begin evacuating their staff from the camp on March 17. In
the late afternoon of March 18, approximately 50 marchers

JAKARTA 00003849 002.2 OF 002


entered the camp with gasoline and informed the remaining
PTNNT employees that they intended to burn it down the
following day. The group made no demands for discussion or
negotiation with PTNNT. The police again took no action,
according to Humberson. By the end of the day on March 18,
Newmont had evacuated all staff and closed the camp. At
about 05:30 th next day, the protestors returned and burned
all the buildings in the camp, causing about USD 500,000 in
damage. In total about eighteen wooden structures were
destroyed. Police were nowhere in evidence during the early
morning arson attack, according to Humberson.

UNLIKELY TO REBUILD EXPLORATION CAMP
--------------


6. (SBU) Following the arson attack, Humberson said,
somewhere between 200 and 400 locals supportive of PTNNT,s
operations in the area began their own counter-march against
the arsonists and attacked them in the woods. Humberson said
he had no information that serious injuries resulted. Since
the March 19 incident, Newmont has closed the camp, pulled
out all the undamaged drilling equpment, and suspended
indefinitely its exploratio activities in the area.
Humberson said it was &less than a 50 percent chance8 that
the Denver headquarters would ever decide to return to the
area, though that decision has more to do with the
unsatisfactory results from their explorations than security
considerations. PTNNT,s main office in Sumbawa Besar
remains closed indefinitely as well. Humberson said the
local and district police are now conducting what appear to
be thorough investigations of the incidents and the events
leading up to them.


7. (SBU) Comment: Humberson offered no proof that the two
NGOs are also behind the protests against Freeport and
ExxonMobil, but it is very plausible that these long-time
foes of the extractive industries would be coordinating on a
national strategy against foreign mining and energy companies
in Indonesia. Although there are almost surely other forces
involved in fomenting the recent demonstrations against
Freeport and ExxonMobil (Ref A),the activist networks of
Walhi, Jatam and other NGOs are a key factor explaining the
recent demonstrations. End comment.

PASCOE