Melted-down coin trade investigated

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)