Bukit Asam pays troubled contractor
Friday, March 17 2000 - 04:00 AM WIB
The state-owned coal-mining firm PT Tambang Batubara Bukit Asam has paid 80 percent of the contract of PT Adiputera Dewasajaya although the latter has not fully committed to its digging contract.
Bukit Asam public relations officer Mulianto said on Wednesday that the company paid Rp 14.5 billion or around 80 percent of the total Rp 19.3 billion digging and transportation work through Bank Universal.
Muliato denied earlier reports that Bukit Asam made the payment because the company was afraid of the possible lawsuit filed by Adiputera.
He said that the payment was made as a tolerance from the company to allow Adiputera pays its workers. The workers had earlier staged demonstration demanding their pay.
Muliato said that according to the contract, Bukit Asam would only pay Adiputera if it has completed 95 percent of its job. But he said that Adiputera only completed around 65 percent of its job.
Muliato also dismissed suggestions that the trouble at Adiputera would affect the company's production. (*)