Political parties, NGOs plan massive protests against privatization of PTBA

A group of political parties, non-government and youth organizations in South Sumatra have threatened to incite massive protests if the central government goes ahead with its plan of privatizing coal miner PT Batubara Bukit Asam (PTBA), South Sumatra based Palembang Post reported on Thursday.

The organizations would show their dissatisfaction among others by encouraging locals to mine coal in Muaraenim Regency where PTBA?s mines are located, said Ibrahim Liem who chairs IPKI political party.

Ibrahim said the privatization of PTBA is politically motivated. ?My view is that the privatization of PTBA merely aims to cover corruption, collusion and nepotism practices at the company,? the newspaper quoted him as saying in a news conference jointly held by about 10 political parties, NGOs and youth organizations.

The organizations demand the government to keep PTBA as a state company and divest part of its shares to South Sumatra in accordance with the spirit of Regional Autonomy Law issued in 1999.

The government has planned to make PTBA public through an initial public offering later this year.

PTBA operates two major coal mining sites in South Sumatra and West Sumatra.

It produces some 10 million tons of coal annually and has 4.9 billion tons proved or probable reserve. (*)