In response to a request by the U.S.-based Exxon Mobil Corporation for an opinion on the lawsuit brought against the oil giant by 11 Acehnese villagers, the State Department has asked a federal judge to dismiss the case. The request cited the United States' political and economic interests in the region, and particularly emphasized concerns about compromising the war on terrorism. The six-page letter, sent by the department's legal advisor, William H. Taft IV, was met with criticism by human rights groups, including Human Rights Watch.
The anonymous plaintiffs, represented by the International Labor Rights Fund (ILRF), allege that Exxon Mobil turned a blind eye to killings, torture and rape carried out by the Indonesian army, which provided security forces for the corporation's Arun project in Aceh province between 1999 and 2001. Bam Athreya, deputy director of the ILRF, said that in some cases villagers were tortured within the confines of the Exxon facility. For its part, Exxon Mobil stated that the lawsuit "is without merit and designed to bring publicity to their organization [ILRF]."
The case is complicated by the Acehnese struggle for self-determination, which is often grouped together with conflicts in East Timor and West Papua. The Indonesian military has a long record of human rights abuses against the Acehnese people. The Acehnese, who live on the northern tip of the island of Sumatra, fought an intermittent war for independence against the Dutch from 1873 to 1942. Today, some Acehnese desire independence from Indonesia; others prefer a federal system. But to many Acehnese, the Java-based Indonesian government represents foreign occupation.
The Acehnese independence struggle is one of several political problems currently facing the Indonesian government. In his letter, Taft recommended that the Exxon case be dismissed in order to prevent further destabilization of the Indonesian government. He also expressed concern that U.S. interference in Indonesian internal affairs would be detrimental to current operations in the war on terrorism in Indonesia, the world's largest Muslim country. Taft also referred to potential economic fallout from the lawsuit, which he claimed might further discourage already declining Western investment in Indonesia.
Two weeks prior to Taft's letter, Soemadi DM Brotodiningrat, the Indonesian Ambassador to the U.S., sent a letter to U.S. Deputy Secretary of State Richard L. Armitage objecting to the lawsuit. Brotodiningrat stated that the lawsuit "will definitely compromise the serious efforts of the Indonesian government to guarantee the safety of foreign investments, including in particular those from the United States."
Also of concern to Taft were recent Chinese investments in Southeast Asia. His letter implied that should U.S. corporations be driven out of Indonesia, Chinese interests would be quick to step in. Taft stated that the void left by departing U.S. business would leave room for countries such as the People's Republic of China, which would be "far less concerned about human rights abuses, or about upholding best business practices."
The letter came at a particularly awkward moment, given President Bush's recent statements on business ethics and responsibility in response to the Enron and WorldCom scandals. Said Human Rights Watch executive director Kenneth Roth, "Corporate responsibility shouldn't stop at the water's edge."
Human rights groups are particularly worried that, should the Exxon case be dismissed, a precedent would be set for cases such as the current one pending against California-based Unocal, which is charged with human rights violations in Burma. Unocal has already called for dismissal of their case by the State Department based on the Exxon case in Indonesia [see Headline above].
