If KPC closed, Sangatta becomes a dead town

The blockage of road access to PT Kaltim Prima Coal's mining sites in Sangatta, East Kalimantan, by KPC employees affiliated to the Indonesian Prosperous Labor Union (SBSI) has been in place for a week and there is no settlement in sight yet, and this would eventually cause local people to suffer.

East Kalimantan police chief Brig. Gen. Bachrumsyah Kasman said in Balikpapan on Thursday that the problem would become more serious if KPC decided to close down its mining operation in Sangatta.

"Sangatta will become a dead town," Bachrumsyah said.

The conflicts between the management of KPC and its employees affiliated to SBSI has not been solved yet, and the company has declared a force majeure situation against its customers as it could not deliver coals to its customers on time because of the blockage.

Bachrumsyah said that it would be more dangerous if similar strike and blockage are followed by employees of other companies in the province as there are already strong indications of similar actions in other companies.

He noted that if such strike hit other companies, and those companies decide to close down their operation, those who will suffer most would be the employees themselves and local people.

Besides in KPC, conflicts between management and employees also hit coal miner Kitadin in Embalut, Tenggarong Seberang in Kutai district, and oil firm Vico in Muara Badak, Kutai district. Employees at the two companies, all affiliated to SBSI, have staged protests against their management, demanding better welfare for them. (*)