Community groups press for speed-up of KPC share divestment
Tuesday, March 11 2003 - 03:44 AM WIB
The protesters grouped in the so called the Alliance of East Kalimantan People threatened to take control of the mining company if the demand of the local authorities to buy parts of the company?s shares could no be settled within three months.
The alliance which include lawyers and students threatened to take the company to court if the local demand to take part in the company?s ownership is still prevented.
Thousands of people grouped in the alliance mostly from East Kalimantan?s capital of Samarinda carried out a peace demonstration at the company?s mining site in Sanggata, Kutai Regency to protest continued delays in the divestment of the company.
Local Dayak tribe also joined the protest, demanding the company to pay a contribution fee of Rp 1,500 for every tons of coal produced by the company. The Dayak, the original tribe of Kalimantan said that the money would be used as scholarship for their children.
KPC, which operates a large coal mining area in East Kalimantan, is equally owned by world mining giants Rio Tinto and BP. Under its contracts of works, the company?s shareholders are required to divest 51 percent of their shares to local investors.
The mandatory divestment program has been delayed for at least three years due to a dispute over the percentage of the shares that must be sold to the central and local government. The local administration had demanded to buy all of the 51 percent stake.
According to the latest compromise, 31 percent of the 51 percent of KPC shares would be sold to the provincial administration and another 20 percent to the central government. The later then appointed the 20 percent of KPC shares to Bukit Asam.
But the sale of the company?s shares to the local government has been delayed due to the different perception related to the status of companies which will represent the local government to take over the shares. (*)