Indonesia regency orders coal firms to stop ops

JAKARTA, July 26 (Reuters) - An Indonesian regency in East Kalimantan province has ordered coal firms PT Kaltim Prima Coal and Perkasa Inaka Kerta to stop production over permits and a land dispute, East Kutai regency said in a statement on Saturday.

The statement said the July 11 order from the regency was made because the firms did not have permits from the forestry ministry for 40,000 hectares (98,840 acres) of land.

PT Kaltim Prima Coal is a unit of PT Bumi Resources (BUMI.JK: Quote, Profile, Research, Stock Buzz), controlled by the family of Indonesia's chief social welfare minister Aburizal Bakrie, while Perkasa Inaka Kerta is a unit of PT Bayan Resources Tbk.

(Reporting by Karima Anjani, editing by Ed Davies)