Divestment through stock exchange possible: KPC

President of PT Kaltim Prima Coal (KPC), Noke Kiroyan said that the management would not object if the East Kalimantan-based coal mining company?s mandatory divestment program is carried out through local stock exchanges.

?If it is the best solution, why not. It is not against the contract,? he told Neraca business daily.

He acknowledged divesting the company?s shares through the stock market could be one of the best solutions but the government?s mission to spread the ownership of the company to local investors would be difficult to fulfill.

According to him, in the past KPC proposed the possibility of selling the shares through the local stock market, but it was opposed by the then Minister of Energy and Natural Resources Kuntoro Mangkusubroto.

As part of the mandatory divestment, KPC is required to sell up to 51 percent of its shares to local companies. However, the divestment has been delayed, as bidders consider the price for the shares are too expensive.(*)