VVD Europarty on-line

WRITTEN QUESTION E-0656/03
by Elly Plooij-van Gorsel (ELDR) to the Commission

(24 February 2003)

Subject: Dredgers in Indonesia

On 26 July 2002 a number of dredgers, including three Belgian vessels, were stopped by the Indonesian navy near Sumatra. They were apparently not carrying the correct papers. An accusation of theft of sand was also made. The vessels were subsequently held under arrest.

On 9 October an Indonesian court fined each of the Belgian dredgers over EUR 3 000 for not having the correct papers on board, but only copies. Following payment of the fines the vessels should have been released. The judge makes no reference in his verdict to theft of sand. The fact is that there was no question of theft. If too small an amount of sand extracted was stated, this is solely to be ascribed to the local concession holders, who are in contact with the central authorities. That, however, is an internal Indonesian problem. The Indonesian Government ignored the judgement and decided, regardless of the judge, to demand damages of EUR 18. 5 million as a condition for release. This sum amounts to 15% of the dredgers' value. The Indonesian Government refers to compensation for the losses suffered by the Indonesian population due to disadvantageous conditions in respect of sand extraction laid down by previous governments. The dredgers have paid the sum and have since been released.

1. Is the Commission aware of this state of affairs?

2. If so, does the Commission consider that the Indonesian Government has acted in contravention of its obligations under the WTO?

3. Does the Commission consider that the Indonesian Government (wrongly) ignored the verdict of the Indonesian judge and thereby undermined the rule of law?

4. If so, does the Commission intend to intervene with the Indonesian Government in this connection?

E-0656/03EN
Answer given by Mr Patten
on behalf of the Commission
(4 April 2003)

The Commission is aware of the issue concerning court proceedings in Indonesia and the impounding and subsequent release of a number of dredgers, among them Belgian vessels.

At this stage, the Commission does not consider that the behaviour of the Indonesian Government conflicts with its World Trade Organisation obligations.

With regard to the alleged ignorance of the judgement by the Indonesian Government the Commission considers this as an internal problem which has no bearing on Indonesia’s international obligations. The Commission therefore does not intend to intervene with the Indonesian Government at this stage.