E. Kalimantan to continue fight for KPC shares
Thursday, May 16 2002 - 02:21 AM WIB
?No, it could not be like that. The central government should be consistent with its initial commitment,? East Kutai regent Awang Faroek was quoted by Kaltim Post as saying on Wednesday.
Awang said the central government had far in advance said East Kalimantan would become the preferred bidder for the 51 percent stake in KPC.
Awang was responding to Minister of Energy and Mineral Resources Purnomo Yusgiantoro who said on Tuesday that the central government would not give exclusive rights to East Kalimantan to buy the 51 percent shares of KPC. The province could join other investors to bid for the shares, the minister said.
The share divestment is set for end-June.
The government and KPC?s shareholders Rio Tinto and BP Plc in March agreed on a US$822 million valuation of the company entire operation.
PC, the world?s largest coal mining firm, operates coalmines in East Kutai Regency in East Kalimantan. It is required under its contract to divest 51 percent of its shares to Indonesian partners after 10 years commercial operation. Its commercial operation started in 1992.
On Tuesday, Awang joined East Kalimantan governor Suwarna AF and other provincial leaders to meet with Minister of Home Affairs Hari Sabarno and Finance Minister Boediono. They asked the ministers to support the province to become the preferred bidder for KPC shares.
A number of state enterprises and private investors have expressed interest to buy the 51 percent of KPC shares. The state companies include coalminer PT Batubara Bukit Asam and electricity company PLN, while the private investors include PT Intan Bumi Perkasa, PT Bumi Resources, PT E-Securities and PT Borneo Batubara Batuah. (*)