KPC confirms financial losses due to demonstration

Coal giant PT Kaltim Prima Coal (KPC) confirmed that it suffered some US$350 thousand (Rp 3 billion) in daily financial losses due to the demonstration held by some of its employees.

"More or less that is the size of the production loss," KPC external relations manager Bambang Susanto was quoted by the Neraca daily.

The local government has also suffered losses because more than half of the $350,000 income or $232,000 was supposed to go into the government's coffer in the form of royalty and taxes, Neraca said.

Bambang also confirmed that the government had suffered greater losses, but declined to provide any figure.

Around 200 KPC employees had staged a protest for more than a week now demanding a better salary. The demonstration is located near the company's vital coal processing plant, causing a disruption in the production process. The demonstrators were also reportedly to have controlled the conveyor belt linking to the local port.

The East Kalimantan Kaltim Post daily reported on Wednesday that KPC had suffered an Rp 2.8 billion in daily financial losses due to the demonstration. The paper quoted the figure from the local youth organization which apparently supported KPC.

"That's why we expect the police to act accordingly because both KPC and the government don't want the potential losses to increase," Bambang said, after meeting director general of mining Surna T. Djajadiningrat.

He also said that the protesting employees were only small if compared to the company's total 2,500 employees.

Asked about its export activity, Bambang said that KPC had so far been able to deliver its export contract because the stock at the port was still enough.

Reports have said earlier that KPC had not been able to deliver its export contract because the company's conveyor belt to the local port had been controlled by the protesting employees.

Meanwhile, sociologist Sarosa Hamongpranoto of the local Mulawarman University feared that the KPC employee demonstration could lead to a wider social conflict in the Sangatta area, East Kutai regency.

Sarosa pointed out that the local informal cultural leader had already given a strong warning to the protesters to end their demonstration.

But the demonstrators declined to back down, stressing that they wanted to negotiate with KPC management.

But reports have said that the management wouldn't negotiate nor hold any dialogue with the protesters.

Head of the Bontan police Lt. Col. Sudjarno said that the demonstration continued on Wednesday. He confirmed that the demonstrators wanted to hold a dialogue with the management first before they decide to end the protest. (*)