Adaro urged to terminate contract with Bumi Puri Persada

Tabalong regency council (DPRD) in South Kalimantan has urged coal miner PT Adaro Indonesia to terminate a contract with local coal transportation company PT Bumi Puri Persada (BPP), local daily Banjarmasin Post reported Wednesday.

BPP holds a contract to transport one million ton of coal from Adaro's mining sites. The sub-contract job was given by Adaro-appointed contractor PT Pamapersada Nusantara considering that BPP was a company owned by the Tabalong regency.

But a special team of the DPRD later found out that BPP was a company privately owned by the Tabalong regent. This has prompted legislators to call for the termination of the contract.

All factions of the council accordingly supported recommendation of the special team that the operational license of BPP be revoked, and its contract with Pamapersada be annulled.(*)