Central govt confirms E. Kalimantan?s stance over lawsuit on KPC case
Friday, July 12 2002 - 10:31 AM WIB
?We sent a letter to the provincial administration three days ago. If they say they will drop its lawsuit, we can start divest the shares, but if they don?t we will file counter-suit against them,? Secretary general of the Ministry of Energy and Mineral Resources Djoko Dharmono told reporters.
East Kalimantan?s readiness to drop its legal suit, filed in the South Jakarta district court last year, will allow the central government and KPC to complete the divestment of 51 percent company shares. The central government and KPC shareholders, Rio Tinto and BP Plc, had set July 31 as the deadline for divesting the shares.
Djoko said Attorney General MA Rachman had prepared necessary documents to sue in court the East Kalimantan administration once the province makes clear about its unwillingness to drop its legal suit against Purnomo and KPC shareholders. Rachman is members of the inter-ministerial team in charge of KPC share divestment.
East Kalimantan filed the lawsuit accusing Rio Tinto and BP Plc of colluding to block the province from buying KPC shares.
Djoko had earlier made public July 15 as the deadline for East Kalimantan to drop its legal suit, while the province?s officials responded by saying they would comply with its demand only if the region gets 51 percent of KPC shares.
The central government had decided that KPC shares will be sold to state companies, Indonesian private investors, and East Kalimantan, and that the province was allowed to purchase 31 percent of the shares. It also decided the remaining 20 percent would go to state enterprises and Indonesian private investors.
Rio Tinto and BP Plc equally own KPC which operates a huge coalmine in Sangatta in East Kutai Regency, East Kalimantan. (godang)