E. Kalimantan threatens to report KPC to AGO

The East Kalimantan administration will report coal mining giant PT Kaltim Prima Coal (KPC) to the Attorney General's Office if the latter proceed with its plan to settle the dispute over its divestment program at the International Court.

The local Kaltim Post daily quoted speaker of East Kalimantan council Sukardi Djawoputro saying that KPC could be charged for corruption because it had delayed several times its divestment program. He said that the delay had cost the government dearly.

There was no confirmation from KPC whether it really plans to go to International Court.

KPC was supposed to complete its divestment last year. But a row with the local government, who has demanded to buy the KPC shares, caused the delay. KPC insisted that it was only obliged to divest 37 percent shares according to the contract, but East Kalimantan said that KPC must divest 51 percent stake. (*)