Sudjana's resignation 'not necessary'

UJUNGPANDANG (JP): Demanding the minister of mines and energy's resignation will not solve the Busang gold mine hoax, a member of the House of Representatives said yesterday.

Tadjuddin Noor Said of Golkar told The Jakarta Post yesterday that Sudjana's resignation would not be ideal.

"The most important thing is that the government guarantees that such a scandal will not happen again in future. This could hamper the country's investment climate because investors might think that there is business uncertainty in Indonesia," said Tadjuddin, who is known for being outspoken.

"There must be a system to prevent such a scandalous story happening. Do not ask the minister to step down," he said.

The Ministry said Saturday that Sudjana had never said he would seek a second term in office.

On May 13, youths and students from four universities marched to Sudjana's office to demand his resignation for failing to detect the notorious mining fraud.

They said Sudjana had to be held responsible by stepping down, and that the police should investigate all officials involved in the fraud.

Local police said Saturday that the fate of hundreds of employees at the Busang I camp in East Kalimantan remained unclear, although they had received their salaries for May.

At least 375 workers are still waiting for Bre-X officials' promise to decide their fate in mid-May.

Canada's Bre-X Minerals Ltd announced Thursday that it had earmarked at least US$600,000 to pay the 488 workers that it planned to layoff after the Indonesian government's decision to freeze all operations of Bre-X and its subsidiaries here.

Bre-X financial director Bernhard Leod had said that severance pay would hopefully be paid before the May 29 general election.

Leod said payments for 177 casual workers, who earned between Rp 5,000 and Rp 10,000 a day, had begun Thursday.

Kutai police chief Lt. Col. Iwan Slamet was quoted by Antara saying, "As of today we have not received any information from Bre-X. However, the 374 workers have received their salaries for May."

Earlier reports said that workers at the company's Busang gold mine in Muara Ancalong were holding the local head of administration and personnel, Idris, and surveyor Agus Tripadi hostage. Two Filipino geologists, Bobby Ramirez and Manny Puspos, were also taken hostage.

But the reports of kidnapping have been strongly denied by Iwan. "The workers just asked them not to leave the location, as they feared no one could help them settle their rights."

Philippines President Fidel Ramos expressed concern Friday over the fate of the two Filipino geologists, and ordered Foreign Secretary Domingo Siazon to verify their whereabouts.

Tenggarong military district commander Lt. Col. Soekarno confirmed yesterday statements from police that the two geologists were at the Balikpapan police station.

Soekarno also denied that police and local military officers were guarding the base camp. "There are no special troops posted in Busang."

The head of the Ministry of Manpower East Kalimantan office, Soewardi, said he could do little to help the workers because they were not registered with his office.

"We have never received any reports on the workers, including the six Filipino geologists," Soewardi said.

This was strongly denied by Bre-X liaison officer John Yohannes: "We have registered all the workers at the ministry's office."

Leod said Friday that Bre-X planned to sell all its assets in Kalimantan, Jakarta, Aceh and North Sulawesi to meet financial obligations including severance pay for its employees. The companies is estimated to have total assets worth Rp 2.5 billion.

Leod said that management had requested Price Waterhouse to audit its Indonesian assets, Antara reported.

He said the assets included the Busang I, II and III projects in East Kalimantan, Sable in Aceh and Sangihe in North Sulawesi.

None of the sites have started production.

Through its subsidiary Westralian Atas Mineral, Bre-X has a 60 percent share in Busang I with PT Krueng Gasui, which has 30 percent, and PT Sungai Atan Perdana, which has 10 percent.

In Busang II and III, Bre-X has a 45 percent share, Freeport McMoran Copper & Gold Inc has 15 percent, Nusamba group has 30 percent and the Indonesian government has 10 percent.

In Sable, Aceh, Bre-X was exploring gold reserves with PT Askatindo Karya Mineral. In Sangihe, Bre-X's partner is PT Sungai Belayan Sejati. (30/prb/anr/cst/sur)