Vico may shut down operation: official
Friday, November 3 2000 - 04:00 AM WIB
Oil and gas firm PT Vico Indonesia may shut down its operation in Muara Badak, Kutai regency, East Kalimantan, after hundreds of employees of its contractors resumed protest by blockading the main entrance road, the Kompas daily reported.
The paper quoted Vico chief negotiation official Hasanuddin Rahman as saying that the road blockade had caused hundreds of company employees to be unable to come to work because they felt threatened.
Hasanuddin added the road blockade had disrupted the supply of food and other logistics. The local Kaltim Post daily quoted Hasanuddin as saying that the food supply for employees was only sufficient for another two days.
"If the condition becomes out of control and if Vico employees could not get enough food supply, Vico will be forced to take a decision to shut down the whole operation," Hasanuddin told reporters following a meeting with East Kalimantan Governor Suwarna AF. Hasanuddin also reported the latest development to the Kutai administration.
He said that if that happens, gas supply both from Vico to PT Badak NGL and fertilizer firm PT Pupuk Kaltim would be disrupted. He added that gas supply from Unocal Indonesia and Total Indonesia would be affected because the supply is being coordinated by Vico.
He added that if the shut down was realized the potential loss would amount to US$11.2 million per day.
Meanwhile, Suwarna asked Vico not to be too hasty in taking the shut down decision. Suwarna said that the effect of the shut down would be felt by the East Kalimantan people.
Hundreds of employees of Vico contractors resumed road blockade on Tuesday. The protesters were being backed up by the SBSI labor union. The protesters had been demanding a higher salary. They also demanded Vico to pay their salary during their strike.
Hasanuddin regretted the SBSI-sponsored demonstration because the demands of the employees were being settled through the help of the local office of the ministry of labor affairs.
Vico has some 1,080 of its own workers, while its contractors have a combined workers of around 1,150. (*)