Sand mining company to sue administration

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.