Tambang Batubara Bukit Asam denies charges of not paying obligation

The state owned coal-mining firm PT Tambang Batubara Bukit Asam denied on Thursday charges it was not paying its obligation to contractor PT Adiputera Dewasajaya, risking thousands of the latter workers to be laid off.

Bukit Asam logistic chief Brikman Sinaga said that according to its contract with Adiputera, the state company would only pay the Rp 20 billion obligation if the latter already completed 95 percent of its job.

Brikman said that Adiputera had so far only done 60-70 percent of the job.

He also said that another factor prohibiting Bukit Asam from making the payment directly to Adiputera was the factoring contract signed between Adiputera and its creditor Bank Universal, in which Bukit Asam must make the repayment to the bank. (*)