KPC's operations normal amid protest<\/p>\n
Dow Jones, Jakarta<\/p>\n
Several hundred protesters are still protesting peacefully
\nMonday near the coal mining site of PT Kaltim Prima Coal (KPC) in
\na remote jungle in East Kalimantan, the company said.<\/p>\n
However, the protest hasn't disturbed the company's operations
\nso far, KPC said.<\/p>\n
The protesters arrived at the KPC area Sunday and commenced a
\nprotest near the entrance to the mining site, it said.<\/p>\n
"The reason for the protest is not yet clear, however, it
\nappears to be linked to KPC's divestment process obligations,"
\nthe company said in a written statement.<\/p>\n
Anglo-Australian mining company Rio Tinto and BP PLC, which
\njointly own KPC, are bound under their 30-year operating
\ncontract, signed under the government of former dictator
\nSoeharto, to sell a 51 percent stake in the mine to Indonesian
\ninvestors.<\/p>\n
KPC was supposed to hand over the stake, which is worth US$420
\nmillion, by the end of 2001, but the process was delayed due to a
\nlegal battle with the East Kalimantan government over who should
\nget control of the mine.<\/p>\n
Emboldened by new laws to give more power to the regions, East
\nKalimantan province, where the mine is situated, has been
\ndemanding KPC sell it the entire 51 percent stake.<\/p>\n
The central government decided last year that a 31 percent
\nstake in the mine, one of Indonesia's most profitable coal mines,
\nwould be sold to the East Kalimantan government, and 20 percent
\nto state-owned coal miner PT Tambang Batubara Bukit Asam.<\/p>\n
Foreign investor confidence has taken a hit from the dispute,
\nwhich has shown the difficulty of doing business in Indonesia in
\nthe absence of strict contract law.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kpcs-operations-normal-amid-protest-1447893297",
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"sponsor": "Okusi Associates",
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