Government asked to review Kideco’s coal mine operation

Members of the legislative council in Pasir Penajam regency, East Kaimantan have urged the central government to review the operation of coal mining company PT Kideco Jaya Agung in the regency, Media Indonesia reported on Thursday.

Suhaimi Abdullah, the vice chairman of the Commission A of the legislative council in Pasir Penajam regency said that the review was needed because Kideco was not serious enough in conducting its coal mining activities.

According to him, Kideco which obtained a permit in 1992 to open coal mines on 27,433 hectares of mining areas until 2022, has showed a lack of commitment in developing its coal concession. Up to now, the company is only able to open less than one percent of its mine concession.

The lack of mining activities has widened social gaps among the three villages near the company’s concession area. “Of the three villages located near the company’s mining site, only Samurangau-Roto village can enjoy the benefits from the company’s operation. The people of other two villages have yet to benefit from the company’s mining activities because the mining area near their villages has not been developed,” he added.

The Pasri Penajam regency is expected to receive royalty of about Rp 30 billion this year, up from Rp 24 billion in 2004. The company has so far allocated community development funds about Rp 2 billion. (*)