Calls for suspension of legislative council team on KPC divestment intensify

Calls for the suspension of the East Kalimantan legislative council?s special team to monitor the progress in the divestment obligation of coal mining giant PT Kaltim Prima Coal (KPC) has intensified, with latest move made by local NGO called APKSA.

APKSA coordinator Abrianto Amin was quoted by the local Kaltim Post daily as saying that the legislators had no authority in taking part in the negotiation process, and that the special team was only spending the provincial government budget to fly to Jakarta many times.

APKSA insisted that the negotiation process with KPC over the divestment obligation should be made solely by the administration not the legislative council.

KPC is obliged to divest a 51 percent stake to the East Kalimantan administration. The latter had been negotiating with KPC for more than two years, causing some to become frustrated. The remaining stumbling block now is regarding with the price of the shares.(*)