SBSI seizes KPC heavy equipments
Saturday, March 24 2001 - 05:00 AM WIB
The SBSI labor union took hostage of two heavy equipments of East Kalimantan coal mining giant PT Kaltim Prima Coal (KPC) on Friday in the Sangatta mining site, which may seriously affect the company's production, the local Kaltim Post daily reported.
The paper did not clearly say the reason for the seizure, but it said that it was linked to a failure in negotiation with KPC sub contractor.
Head of KPC Balikpapan office Hasrul Sani appealed to the local administration and councilor to immediately take action against SBSI to end the seizure.
Elsewhere, Kaltim Post also reported that KPC seemed to have reached agreement with the protesting Bengalon youth, which has made a blockade causing disruption to the company's production.
The paper said that during a meeting on Friday, the Bengalon youth seemed to finally understand the company's argument of not paying land compensation to the protesting group.
The Bengalon youth had earlier demanded KPC to provide compensation for their land acquired by the company, but KPC insisted to have paid the compensation to another group of villagers as recommended by the local village authority.
The Bengalon youth, however, demanded Friday KPC to provide more community development program for the local young men.
KPC representative Salehuddin welcome the demand, saying that the company had strong commitment on community development program. He also said that the company would allocate around US$1.4 million for community development program this year, not $3.6 million as reported earlier by Kaltim Post.(*)