Adaro accused of lying about community development program

South Kalimantan-based coal producer PT Adaro Indonesia has been accused of claiming ownership of a community development project in the area which in fact belongs to the local administration, local daily Banjarmasin Post reported on Monday.

A local non-government organization, SAMBA, said the community development project covered more than 10 hectares of rubber plantations in Tigoran village in Hulu Sungai Utara (HSU) regency, South Kalimantan.

Adaro had included the project in its presentation in Jakarta, which led the firm to win an award from the President, said SAMBA secretary Suhardi.

Suhardi said HSU?s office in charge of plantations had initiated and implemented the project so as to assist local farmers to develop rubber plantations with better methods.

?PT Adaro has lied to the public and the central government about its activities in this area,? Suhardi said.

He said the company had not been transparent in implementing its community development programs, and that Adaro had not made it clear whether it had really allocated an estimated Rp5 billion (US$=Rp9,000) it had pledged for community development programs in the regency.

Adaro leaders were not available when contacted by Banjarmasin Post to confirm SAMBA?s allegations.

Adaro, Indonesia? s top coal producer, operates in HSU and other parts of South Kalimantan. (*)