KPC waiting for govt action before making final decision<\/p>\n
JAKARTA (JP): PT Kaltim Prima Coal (KPC) is waiting for the
\ngovernment to end a blockade of its mine in Sanggata regency,
\nEast Kalimantan, before issuing a final decision on whether it
\nwill maintain its operation or pull out of the province.<\/p>\n
The KPC representative in Jakarta, Bambang Susanto, said the
\ncompany was waiting for the government to disperse the KPC
\nworkers blockading the mine by next Friday.<\/p>\n
\"Given the circumstances, KPC has decided to defer a decision
\npending the outcome of this latest government initiative,\"
\nBambang said after the company's shareholders meeting on
\nWednesday.<\/p>\n
The owners of KPC, Anglo-Australian mining company Rio Tinto
\nand British-American oil and gas company Beyond Petroleum (BP),
\nhave discussed a number of options to cope with the impact of the
\nworkers' blockade and the actions which may be taken if the
\nblockade continues, Bambang said.<\/p>\n
KPC's operation remains closed amid faltering negotiations
\nwith some 200 striking workers who are demanding a salary
\nincrease.<\/p>\n
The company has said that since the blockade began in mid-
\nJune, it has lost over US$50 million, or the equivalent to 1.85
\nmillion metric tons of coal.<\/p>\n
The company declared force majeure to its customers earlier
\nthis month to avoid paying penalties for its inability to ship
\ncoal.<\/p>\n
Bambang said KPC might declare force majeure to the
\ngovernment, which would exempt it from having to pay its full
\nobligation as contained in its contract.<\/p>\n
The government promised to end the blockade by Friday but the
\nIndonesian Prosperous Labor Union (SBSI), which organized the
\nstrike, requested local police not to take any action against the
\nworkers until Tuesday next week.<\/p>\n
\"They (SBSI) said they needed more time for discussion among
\nthemselves,\" Bambang explained.<\/p>\n
He said the local police had yet to response to SBSI's
\nrequest. \"But if the police decide to wait until Tuesday of next
\nweek, then KPC will also have to delay its decision until then.\"<\/p>\n
Patience<\/p>\n
The director general for mining at the Ministry of Mines and
\nEnergy, Surna Tjahja Djadjadiningrat, asked KPC to remain patient
\nand give the police time to deal with the blockade.<\/p>\n
\"Everything now depends on the local police,\" Surna told The
\nJakarta Post on Tuesday.<\/p>\n
Surna said a final resolution of KPC's case was beyond his
\nauthority and that he had called all related parties, including
\nthe Ministry of Manpower, to help settle the dispute.<\/p>\n
\"It is actually a matter of law enforcement, but does the
\nNational Police chief understand the importance of this matter?\"
\nhe said.<\/p>\n
He said there was little the government could do if KPC
\ndeclared force majeure. \"But it's not the material loss I am
\nworried about, it's our reputation on the international market
\nthat is at stake now.\"<\/p>\n
KPC is Indonesia's largest coal exporter, with markets in
\nAsia, Europe and America.<\/p>\n
SBSI chairman Muchtar Pakpahan said he was ready to lift the
\nblockade on KPC's mine if the company agreed not to take
\ndisciplinary measures against the striking workers.<\/p>\n
He said the main issue hampering a final settlement was not
\nthe salary increase, but the possibility that KPC might fire the
\nstrikers over trivial matters once they went back to work.<\/p>\n
\"I cannot allow the workers to face that threat after they
\nstruggled so hard to increase the salary of all KPC employees,\"
\nhe told the Post late on Tuesday.<\/p>\n
He said KPC insisted on issuing warning letters to the workers
\ntaking part in the strike.<\/p>\n
That measure, he said, was only a pretense to fire the workers
\nfor any minor violations of company regulation.<\/p>\n
Bambang said KPC was determined to issue the warning letters,
\nbut said the reason for this was not the strike itself. \"During
\nthe strike, the workers caused damage to several production
\nfacilities and also physically threatened other workers.\"<\/p>\n
Bambang said the workers had a right to stage strikes as
\nstipulated by law. However, he charged SBSI with violating the
\nprocedures for staging a strike, which he said made their action
\nillegal. (bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kpc-waiting-for-govt-action-before-making-final-decision-1447893297",
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