E. Kalimantan Council invites energy minister over KPC's stake
Tuesday, February 6 2001 - 04:30 AM WIB
The East Kalimantan Legislative Council has decided to invite Minister of Energy and Mineral Resources Purnomo Yusgiantoro to discuss the divestment of shares by coal mining firm PT Kaltim Prima Coal (KPC) with operations in Sangatta, East Kutai district.
The Council speaker Sukardi Jarwo Putro said that the Council decided to involve the minister because the planned divestment by KPC had been stalled.
The Council and also the East Kalimantan Administration have wanted KPC to divest up to 51 percent of the stake to local entities by April 2001, as being stipulated in the company's contract of works (COW).
Meanwhile, KPC maintained that it would only divest up to 37 percent of ownership to local entity.
Sukardi and the head of the Council's Commission C, Agus Tamtomo, told reporters on Monday (Feb. 5) that the Council had set a meeting in near future, in which the minister should be present.
"We have gone to Jakarta several times, but this matter remains at the balance," Sukardi said.
He noted that there had been an understanding reached by the East Kalimantan governor, the Council speaker and the directorate general of general mining that KPC must have divested 44 percent of stake to local entity. And by April 2001, KPC will have to divest up to 51 percent of stake.
According to Sukardi, this matter remained unresolved because Minister Purnomo had not taken any position, while at the same time, KPC wanted to divest only 37 percent of stake.
"The summons (to the minister) is to know the minister's position and the reasons why KPC maintains to its stance that it wants to divest 37 percent," Sukardi said. (*)