Bukit Asam calls for support from locals amid protests
Friday, May 12 2000 - 03:30 AM WIB
State owned coal mining operator PT Tambang Bukit Asam has called on the local community and government in its mining site in Tanjung Enim, South Sumatera to support its privatization program, Sriwijaya Pos reported on Friday.
The company's president Sunardi that the support from the locals was needed to ensure that the company could carry out its activities smoothly and is free from any kinds of disturbance. "The locals should be proud that their company has been selected one of a few companies which are qualified to join the government's privatization program," he added.
The call was made as hundreds of former workers of PT Bukit Asam's subcontractor PT Sumber Mitra Jaya seized company vehicles and stayed over night at the coal producer's office in Tanjung Enim. According to the latest report, at least one was shot and four others suffered injuries when the local police opened fires to the demonstrators.
Sunardi said that if the privatization is successfully then it will not only benefit the central government but also the locals because the privatization program is not only aimed at raising money but also will result in better efficiency and a better care to the locals.
Bukit Asam will soon launch its initial public offering in its privatization program to raise funds to finance its coal mining expansion and to increase the coal transportation capacity from the coal mining site in Tanjung Enim, South Sumatera and Tarahan port in Lampung province.
He said the project would able to increase the coal transportation capacity to 12.5 million tons per year beginning 2002 or 2003, an increase by about 4.5 million tons a year from the present capacity."It is certainly a feasible investment," he added.
The new investment is also needed to increase the number of locomotives from 40 at present to 70 as well as to improve the railway track, he said. The two companies are also considering the establishment of a join venture company to oversee and operate the coal trains. (*)