KPC demands law enforcers to end blockade

Coal mining company PT Kaltim Prima Coal in Sangatta, East Kalimantan called on the law enforcers to take actions to end the blockade set up by its striking workers, dismissing the workers' action illegal.

"Law enforcement is needed to end the blockade. KPC considers the blockade illegal," KPC spokesman Bambang Susanto said on Wednesday.

However Bambang stopped short of demanding the arrests of the workers who set up the blockade.

The striking workers, who were grouped in the Indonesian Prosperous Labor Union (SBSI) recently took over the company's production facilities again, forcing the company to stop production and declare force majeure to its supply contracts with its buyers.

Sharing Bambang's view, director general of mining at the Ministry of Mines and Energy Surna T. Djajadiningrat said law enforcers should step in to end the blockade. Otherwise, KPC will not be able to continue production and the company as well as the government will suffer greater losses.

"The government is already confused as to what other measures to take to end the problem," he said.

Bambang said KPC had lost the potential revenue of US$45 million due to the strike.

"Of the amount, the government should have received Rp 82 billion (US$1=Rp 8,560)," Bambang said.

Under the coal contract, the government takes 13.5 percent of KPC's coal output in royalties.

Bambang suspected that certain parties who intentionally sought to trouble KPC's activities backed up the workers.

KPC is equally owned by Anglo Australian mining giant Rio Tinto and British firm British Petroleum, which recently renamed itself Beyond Petroleum following mergers American energy firm Arco. (--George Blunt--)