Bakrie faces legal obstacles to sell stake in Arutmin
Friday, July 20 2001 - 05:07 AM WIB
The sources said Bakrie was forced by its creditors to sell its various subsidiaries, including PT Arutmin Indonesia to service its huge debt.
Bakrie owns Arutmin in the partnership with BHP Billiton, formerly known as BHP Pty, which has 80 percent stake.
Under the coal contract of work, most coal contractors, including Arutmin, has to sell up to 51 percent of its shares to the Indonesian government, state companies, Indonesian-controlled private companies or Indonesian citizens after ten years of production.
This means, according to the sources, Bakrie has to find local buyer for its 20 percent stake in Arutmin.
BHP Billiton, as foreign holder of PT Arutmin has to divest 31 percent of its stake this year as stipulated by the contract.
Bakrie Brothers president director Irwan Sjarkawi said that in the current Indonesian economic crises, it was almost impossible to find local buyers for its stake.
?Therefore we have no choice but to ask permission from the ministry of energy and mineral resources to allow us to waive the stipulation and sell our stake in Arutmin to our foreign creditors,? he said.
An official at the ministry of energy and mineral resources told Petromindo.com that the ministry is carefully studying the case.
? This is the special case and we understand Bakrie?s situation. But we do not want this to become precedent for other coal mining companies,? the official said.
The official further said that the ministry is considering asking the House of Representative?s endorsement to allow Bakrie to sell stake to foreign creditors.
BHP Billiton has reportedly valued the total stake in Arutmin at US$252 million.
Arutmin , which is the country?s third largest coal producer, operates the Senakin and Satui mines in South Kalimantan. (alex)