E. Kalimantan has yet dropped lawsuit against gov?t

East Kalimantan provincial government has yet drop lawsuit against government on coal mining firm PT Kaltim Prima Coal divestment despite its promise to do so.

?Thus far, the law suit is still proceeding. Our lawyers attended the court session at the Jakarta administrative court on Wednesday,? said R. Sukhyar, a senior official at the ministry of energy and mineral resources on Thursday.

East Kalimantan provincial administration through its wholly owned business unit PD Setia Bakti Mulia had recently filed lawsuit at the Jakarta administrative court against ministry of energy and mineral on the ground that the ministry had not taken necessary steps to speed up the divestment process of the KPC. East Kalimantan is eager to buy 51 percent of KPC shares, which, according to the coal contract of work, must be divested to Indonesian owned business entities.

However, later, East Kalimantan governor Suwarna Abdul Fatah said East Kalimantan would soon drop the lawsuit and would entrust negotiation process to determine KPC share price to the government. (alex)