Banjarmasin, South Kalimantan 5/10 (AntaranewsKalsel) - South Kalimantan Governor H Sahbirin Noor revoked the provincial government capital investment from PT Meratus Jaya Iron & Steel (MJIS).
The revocation was set forth in the draft regulation on Revocation of Local Regulation (Perda) No. 1/2009 which was presented at a plenary session of the South Kalimantan Legislative Council (DPRD) led by Vice Chairman H Muhaimin in Banjarmasin on Thursday.
The Provincial Secretary H Abdul Haris when reading the draft explained several reasons for revocation, partly because it was contrary to legislation.
It was based on the letter of the Attorney General (Kejagung) of the Republic of Indonesia Number 8.133/G/Gph 1/03/2017 regarding the legal opinion of the State Attorney.
The Attorney General's Office with its letter stated that capital participation in the form of land can only be invested in state-owned enterprises (BUMN) or city or district-owned enterprises (BUMD).
The reason of equity participation in the act of alienation so that there are contradictions of both activities.
Therefore, as a consequence of provincial government and DPRD as the legislator is obliged to follow up by the withdrawal of Perda 1/2009, explained Sahbirin.
The provincial land to be the investment to MJIS is located in Batulicin (about 260 kilometers east of Banjarmasin), the capital of Tanah Bumbu District, South Kalimantan.
