Divestment of KPC’s 32.4 percent shares will be done in 2Q

The divestment process of 32.4 percent shares in East Kalimantan-based coal producer PT Kaltim Prima Coal (KPC) is expected to be finished in the second quarter of 2004, the Investor Daily Indonesia newspaper reported in its Monday edition.

The shares are part of the 51 percent stake to be sold to local investors. KPC is owned by the JSX-listed PT Bumi Resources (Bumi). The divestment of the 51 percent shares was supposed to finish last year.

“The time for the divestment is just an estimation (period). We'll try to finish the divestment plan very soon,” Bumi’s director Eddie J. Soebari told the Investor in Jakarta over the weekend.

The plan, according to Eddie, is in accordance with the government’s directive and the Bumi will always follow the government’s instruction.

“Previously, when the government asked for the divestment of 18.6 percent shares of KPC, we did it. Now the government asks Bumi to divest 32 percent, we will do it. For the record, now the 18.6 percent of KPC shares is owned by East Kutai regency administration, though the payment of US$104 million is not clear,” Eddie said.

Further, Eddie mentioned that the Bumi will use new offering price for the divestment of 32.4 percent of KPC shares.

“We will stick to the provisions of the coal contract (PKP2B), Eddie said.

The divestment process will begin from zero, starting from fixation of price to bidding process. Now the process is at the phase of fixing of price.

“Further, Bumi will involve independent (player). The result will be submitted to the government,” he said. (*)