Bahari agrees to increase CD funds to Sebuku residents

The management of South Kalimantan-based coal producer PT Bahari Cakrawala Sebuku has agreed to increase community development funds for residents living near the company?s coal mining site on Sebuku Island, Bisnis Indonesia reported on Monday.

The funding commitment was made after the local residents agreed to end the protest against the company. The local people recently blocked the access road to the company?s mining site that had forced it to stop operations for several days.

The local residents protested the company?s move to relocate one of the rivers near the mining site. The river relocation had caused a flood in the resident?s rice fields.

Bahari Cakrawala, however, refused to unveil the amount of the additional CD funds that would be allocated for the nearby villages. At present, the company provides between US$150,000 and US$200,000 for its CD funds for the Sebuku island a year.

Siti Maimunah, the coordinator of mining advocacy network Jatam, however, said the local residents were forced to end their protest and agreed with the company?s pledge due to intimidation from security officials. (*)