Melted-down coin trade investigated

TANGERANG (JP): Police are investigating a business which melted down coins of denominations from Rp 25 to Rp 500 at Gembor village in Jatiuwung district here.

Lt. Col. Pudji Hartanto, chief of the Tangerang police precinct, said Wednesday police officers had questioned Eeng, the 42-year-old owner of metalworks company PT Logam Kencana.

Preliminary results of the investigation showed Eeng was not directly involved in the illegal practice, which was apparently organized by an unidentified Taiwan businessman who rented the facilities.

"No other people have thus far been questioned on the business," Pudji said.

He added that the company's licenses were being checked.

"The company has not had any coordination with the central bank or state-owned securities and money printing company Peruri."

Eeng explained the businessman rented his foundry's facilities for one month at Rp 3 million. "The businessman only said that the facilities would be used to do metalworks."

He said he would file a lawsuit against the businessman for violating the terms of their contract.

The Korean businessman was believed to have melted about 10 tons of the coins per week, of which half had been shipped to South Korea.

An police officer who asked not to be named said that a kilogram of coins -- valued at only Rp 15,000 (about one U.S. dollar) -- sold well in the form of bullion on the international market. (41/ivy)