Exxon welcomes US backing on lawsuit

Exxon-Mobil rejected suggestions that the US government had acted inappropriately in urging the dismissal of a lawsuit against the oil giant over its operations in a war-torn province of Indonesia, AFP reported Friday.

Exxon had sought and received a State Department opinion on the lawsuit filed by the International Labour Rights Fund, which accuses the company of failing to prevent human rights abuses by the Indonesian military of residents near a natural gas plant in Aceh province.

Exxon firmly denies any liability, pointing out that while the Aceh plant is run by Exxon, it is owned by the Indonesian government, which is responsible for providing security.

"This court case seeks to judge the government of Indonesia and the obvious question is whether it is for a US district court to do that," said Exxon spokeswoman Trisha Perkins.

The lawsuit was filed under the Alien Tort Statute, under which alleged victims of human rights abuses, perpetrated in other countries, can file in US courts.

The State Department "opinion," which is non-binding, argued that the lawsuit could have an adverse impact on US interests, including the global campaign against terrorism in which Indonesia is an important ally.

It also mentioned the negative consequences for US firms "bidding on contracts in extractives and other industries," and warned that Chinese oil companies might try to muscle in on existing projects.

New York-based Human Rights Watch (HRW) said Wednesday that the US government's intervention ran contrary to its pledge to promote ethical business practices -- an argument dismissed by Exxon.

"The role of the State Department is to develop and implement foreign policy. If there is a case which it was felt could impact on foreign policy, it is wholly appropriate to seek an opinion," Perkins said, adding that there were numerous precedents.

Perkins said Exxon condemned human rights violations in any form and fully agreed with HRW executive director Kenneth Roth's statement that corporate responsibility "shouldn't stop at the water's edge."

"Exxon works very hard with local communities to improve the quality of human life," she said.

"By being in what is a very difficult area (Aceh) and contributing to the community, we act as a stabilising force." (*)