KPC allocates US$1.5m per year for community development

Giant coal mining company PT Kaltim Prima Coal said it had allocated US$1.5 million per year for community development (CD) programs in the East Kutai regency, East Kalimantan, especially surrounding its operating area in Sangatta, local daily Kaltim Post reported.

Company CD superintendent Salehuddin corrected the paper?s earlier report , which was quoted by Petromindo. Com, which said the company allocated $15,000 per year for its community development program.

?The $15,000 fund is allocated only for training. It is only a small part of our CD program,? Salehuddin told the paper Friday.

As part of its CD program, the company had built the well-equipped Sangatta High School, Salehuddin said, adding the school had been officially handed over the local administration.

He said in its CD programs, the company focused on eight priority programs, including the so-called micro credit program, in which villagers received an amount of credits from the company for their business and their credit payment was then used to finance the business of other villagers.

He said the credit program had shown 90 percent success rate.

Besides, the company in cooperation with the East Kutai administration had also launched a corn plantation pilot project on a 1,000- hectare land in Rantau Pulung Sangatta.

The company has also launched a program aimed at modernizing fish farming activities of locals living in the region?s coastal areas.

Other CD programs include wetland farming project, health promotion and environmental protection projects.

The company has also provided training, built health centers and elementary schools around its operation area.

?Honestly speaking, we are grateful to KPC for its CD program, which is aimed for small people and farmers. We can now enjoy the benefits,? a farmer of Rantau Pulung said.

KPC is equally owned by Anglo-Australian firm Rio Tinto and Anglo-American firm BP (*)