Sand mining company to sue administration

The Jakarta Post, Serang

PT Jet Star quarrying and excavation company has threatened to take legal action against the Serang regency in Banten province after the decision by administration officials to revoke a sand excavation permit in the Java Sea off of Tirtayasa.

The area lies nearest the coastal village of Lontar, about 60 kilometers west of the Soekarno-Hatta International airport.

Company President Henry Hartono said on Sunday that the permit revocation had caused his company losses exceeding Rp 600 million (US$69,364) per day since quarrying was halted on May 6.

"The revocation has no legal basis. It's only based on the people's protests," he was quoted by Antara as saying.

Some 3,000 fishermen who work in the waters near the site protested the activity last week complaining of massive environmental damage and the killing of fish in the area.

Henry complained that his company was losing a lot of money, mostly from the rental fees for three dredging ships from PT Rukindo. It must also pay penalties to its clients for its inability to supply the sand as stated in business agreements.

In a related twist, Aldy Marjoto of quarrying company PT Bumi Ayu Tirtayasa had previously accused PT Jet Star of bribing the administration officials to extend its permit up to February 2005. He named the Serang regent and a group of councillors among the recipients of the bribes.

Henry strongly denied the accusations. Instead, he accused Aldy of organizing the protests so the latter's firm would have less competition.

"I prefer to take the case to court to have legal certainty," Henry added.

Henry claimed that "the majority of people" in Lontar village supported the sand excavation near their village because they gained benefits from it. He believes the protesters came from other villages.