BKS mine operation suspended following conflict

After ousting its local director Masdari, East Kalimantan coal miner PT Bara Kumala Sakti (BKS) was forced to suspend its mining operation in Jembayan, Loa Kulu sub-district of Kutai Kartanegara. Spokesperson for the Society Organization Forum of Kutai Kartanegara, after openly held a protest, stated that the company has failed to do its financial obligations, down to hiring thugs to smooth its coal mining operation.

?PT BKS is hiring thugs to threaten people who protested the company's decision," Forum organizer Husni Fahruddin said as quoted by Balikpapan Pos. He also said that the company has failed to meet its obligation, including paying the tax for each coal transaction. It was reported that the company recorded an unpaid debt amounting to Rp835 billion, in addition to unpaid taxes of up to Rp60 billion.

Internal conflict within BKS started when company directors and shareholder, Masdari and Hermanto Cigot, decided not to attend the company's Extraordinary Shareholders' Meeting, arguing that the meeting's invitation was inauthentic with Maya Jean Kidam named as company commissioner signing the letter. Masdari then reported partner and PT Kaltim Global Indonesia (KGI) owner Abhiram Singh Yadav to the District Police with the accusation of faking the letter, including changing the company's authentic notary deed as well as putting director reshuffle within the meeting agenda, namely removing Masdari from his position, the man who was said to be the IUP license holder and the first contractor for BKS.

It was reported that following the Extraordinary Shareholders' General Meeting, Abhiram as partner changed the company's notary deed and appointed himself as president director, Abdi Khalid Ginting as president commissioner as well as Maya Jean Kidam and Amrul Indra as commissioners.

In its development, Maya Jean Kidam who resides in Jakarta came to the Indonesian Police Force headquanters on November 30th and said that she did not put her signature on the letter, and that the signature was fake.

"A meeting on late December has decided to suspend the company's operation after they completed their last loading activity, awaiting for a follow up meeting at the Kutai Kartanegara House of Representatives Office," Operational Division Commander of the Kutai Kartanegara Police District Adi Aryanto, who attended the meeting between the company and the forum, said. (*)