Court hearing on Kideco?s dispute with Pasir regency adjourned until October
Thursday, August 28 2003 - 08:40 AM WIB
Officials of Kideco?s majority shareholders, Korean firms Samtan Corp and Samchully Corp, did not appear in the court, said Frederik J. Pinakunary from Jakarta-based Lubis, Santosa & Maulana law firm.
The Korean firms had not received the summons issued by the Samarinda court, Fredrik said.
The Samarinda court adjourned the session until October 29.
The Pasir regency administration in July filed a suit in the Samarinda court against Samtan and Samchully because they had not offer Kideco shares to the regency.
Earlier, the Pasir administration joined the East Kalimantan provincial administration to sue Kideco in the same court on the ground that the company had not offered its shares to the provincial administration.
They demanded the company to pay them compensation in excess of US$300 million, and insisted that the court annul the sale of 10 percent stake Kideco.
The court judges however turned down their suit and asked them to report their case to the South Jakarta district court because Kideco was domiciled in the area.
In keeping with its contractual obligations, Kideco in 2001 offered 34 percent of its shares to Indonesian firms, but only 10 percent was sold. Last year, the company offered another 34 percent of its shares, and in May it was supposed to complete the mandatory divestment of 51 percent if its shares.
Kideco has coal mining operations in Pasir. (godang)