34 NGOs' plan to meet Megawati over KPC divestment opposed

Six non-government organizations (NGOs) in East Kalimantan on Monday aired their disagreement on the plan of 34 local NGOs to meet with President Megawati Sukarnoputri over the divestment of coal mining giant PT Kaltim Prima Coal (KPC), local daily Kaltim Post reported.

They conveyed their disagreement in a meeting between their leaders and East Kalimantan governor Suwarna. The organizations included Association of Local Youths Concerned with East Kalimantan (IPDP) and Association of East Kalimantan?s Dayaks (PDKI).

They told the governor they could not fully believe the 34 NGOs who claim that their struggles for the divestment of KPC shares are for the welfare of the East Kalimantan people. The 34 organizations recently said their planned meeting with the President in Jakarta was to ensure that East Kalimantan become the preferred bidder for the 51 percent shares to be divested by KPC.

The mandatory share divestment is set for end-June while KPC still insists that it is legally free to sell its shares to any Indonesian business entities.

KPC, which is equally owned by Rio Tinto and BP Plc, operates coalmines in Sangatta, East Kalimantan. (*)