E. Kutai administration demands transparency in KPC?s community development

East Kutai regent Awang Faroek Ishak has asked coal mining giant PT Kaltim Prima Coal (KPC) to be transparent in the implementation of community development programs financed with the company?s funds, Bisnis Indonesia daily reported on Wednesday.

?So far, KPC and other mining companies have not coordinated with the local administration in community development program implementation. We want transparency in the management of community development funds so that we could account the fund spending to the public,? Awang told the newspaper.

As an example, Awang said, KPC had not filed any report to the local administration about the spending of the Rp15.88 billion (US$=Rp9,050) it had pledged for projects to improve the welfare of people in East Kutai in 2002. Of the amount, only Rp350 million had been spent for such projects.

?We do not know where the remaining balance of the fund has gone to,? Awang said.

The regent said they would ask KPC leaders to make presentation in a hearing with the regency council about the spending of the Rp15.88 billion.

Existing laws require mining companies to set aside certain amounts of their funds for community development projects in their areas of operation.

KPC, Indonesia?s most profitable coal miner, operates in Sangatta in East Kutai, East Kalimantan.

Equally owned by world mining and energy giants Rio Tinto and BP PLC, KPC has formally offered 51 percent of its shares to Indonesian parties through the central government. (*)