NGOs oppose privatization of PT Bukit Asam

Local non-governmental organizations (NGOs) met the management of the state owned coal-mining company PT Bukit Asam in its office in Muara Enim, South Sumatera on Wednesday to protest the company's planned privatization plan, Sriwijaya Pos reported on Thursday.

The representatives of 13 local NGOs conveyed their protest to the company's public relations manager Suharisman Sutary after their demand to meet the board of directors was turned down.

The NGOs asked the company's management to cancel the privatization program in order to protect the people's interests.

"If the company go ahead with its privatization program, it will automatically pay less attention to the people's interest because all of the company's energy will be focused on getting profit as much as possible for the sake of investors," one of the NGOs' representatives said.

The NGOs feared that in order to achieve its mission and target, the company would not only ignore the people's interest but also the environment.

Bukit Asam will soon launch its initial public offering in its privatization program to raise funds to finance its coal mining expansion and to increase the coal transportation capacity from the coal-mining site in Tanjung Enim, South Sumatera and Tarahan port in Lampung province.

He said the project would able to increase the coal transportation capacity to 12.5 million tons per year beginning 2002 or 2003, an increase by about 4.5 million tons a year from the present capacity. "It is certainly a feasible investment," he added.

The new investment is also needed to increase the number of locomotives from 40 at present to 70 as well as to improve the railway track, he said. The two companies are also considering the establishment of a join venture company to oversee and operate the coal trains. (*)