Lawsuits Target Energy Giants: Rebellion & Referendum

By Jennifer Huang | World Power I: Business & Law

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Aceh, at the northern end of Sumatra, is a lush country of farmers, fishermen, tropical rainforest and endangered orangutan. Until the 1970s, rubber and coffee plantations dominated the economy, along with rice and tobacco, and timber products like paper pulp and palm oil. All that changed with the discovery in 1971 of even greater riches beneath the fertile soil — natural gas and oil. With facilities near the northern towns of Lhokseumawe and Lhoksukon, Acehnese operations made Indonesia the world’s leading exporter of liquid natural gas (LNG). Bloomberg news reported in December 12, 2001, that the Indonesian government in Jakarta brings in an estimated US $1.7 billion from the operations in Aceh.

Lawsuits Target Energy Giants: A Life in Aceh

By Jennifer Huang | World Power I: Business & Law

Page 2 of 11

The oldest son of nine siblings, Jafar Siddiq Hamzah loved to watch courtroom dramas on state-run television, and in 1991 graduated from law school at Amir Hamzah University in the North Sumatran city of Medan. “He said, ‘Indonesian law is like a spiderweb. It just catches the small animals, but never tries to get a big animal.’ That’s why he really wanted to be a lawyer,” recalled his sister. Friends describe Hamzah as a man who smiled often, took pride in his recipe for fried rice, and worked tirelessly as an attorney for the Legal Aid Institute in Medan.

Lawsuits Target Energy Giants: Indonesian conflict comes to U.S. courts

By Jennifer Huang | World Power I: Business & Law

Page 1 of 11

In March 2001, citing safety concerns, ExxonMobil suspended operations at the Arun natural gas fields in Aceh in North Sumatra — an Indonesian province torn by separatist violence. The closure lasted four months, and added up to a loss of $350 million. Production resumed that June after Indonesia increased security forces in the region. But ExxonMobil’s acceptance of government security measures has provoked a lawsuit, Doe v. ExxonMobil, filed against the company by anonymous Acehnese villagers. The suit alleges that, over the last 11 years, the company provided salaries and equipment to military forces responsible for human rights abuses in Aceh (pronounced “Ah-chay”), including sexual assault, kidnapping, murder and genocide.