Residents oppose PTBA?s privatization

A group of people residing near the mining concession of state owned PT Bukit Asam (PTBA) in Muara Enim, South Sumatra have protested the company?s privatization plan on fears that the government?s share divestment in the company could lead to massive layoffs and reduce its community development program, Sumatera Ekspres reported on Wednesday.

The local people said that besides creating more unemployment problem, the privatization could also reduce the company?s contribution to the regency?s budget. "On be half of the local people, we strongly oppose the privatization," the chairman of the Indonesian Democratic Youth (PUDI), Eduar Taruna, said during a socialization of the privatization program.

Speakers of the socialization campaign Hasan said that the privatization was needed to help the government to fill in the gap in the state budget. He dismissed the local people?s fears sating that the privatization would instead involve more participation from the public.

PTBA will carry out its privatization through an initial public offering which would be launched between October or November this year. The company?s shares would be then listed on the Jakarta Stock Exchange (JSX). (*)