East Kalimantan legislator questions KPC's commitment to local manpower
Friday, May 26 2000 - 05:00 AM WIB
East Kalimantan legislator Elly Nuranti questioned the commitment of coal mining company PT Kaltim Prima Coal (KPC) and other large companies operating in the province over the local manpower resources.
Elly lambasted the lack of the commitment of KPC and the other companies to employ local labor as reflected by the fact that many of the local youth were still unemployed.
He warned KPC that under its contract with the government, some 85 percent of the company's staffs had to come from the local resources.
Meanwhile, economist Iswan Priady suspected the contract of KPC and state mining company PT Tambang Batubara was filled with nepotism and corrupt practices.
He pointed out that the contract allowed Adaro to enjoy a high profit margin of more than 26 percent, as a comparison of only around 15 enjoyed by oil companies operating under the state-oil and gas company Pertamina production sharing contract.
He also questioned why it's only KPC who had the right to unilaterally end the contract. (*)