E. Kalimantan to soon drop legal suit against Purnomo over KPC case
Monday, July 8 2002 - 07:20 AM WIB
The newspaper quoted an East Kalimatan official as saying over the weekend that the plan had been touched on in Saturday?s meeting of East Kalimantan top leaders. They included governor Suwarno, East Kutai regent Awang Faroek Ishak and provincial council leaders.
KPC operates a huge coalmine in Sangatta in East Kutai Regency, East Kalimantan.
East Kalimantan had sued Purnomo and other ministry officials in the South Jakarta district court accusing them of blocking its plan to buy 51 percent of KPC shares. The province had also filed a suit in the same court against KPC shareholders Rio Tinto and BP Plc allegedly because they had colluded with ministry officials to prevent East Kalimantan from purchasing KPC shares.
Initially, KPC was scheduled to divest 51 percent of its shares last year. But the plan was extended to March 2002, and was delayed again to end-July of this year. The main reason for the delay was East Kalimantan insisting on becoming the preferred bidder for the 51 percent shares of KPC.
Earlier reported, central government officials said it would sue East Kalimantan administration in court if it refuses to drop its lawsuit against KPC before July 31.
The official added they would continue pressing the central government and KPC shareholders to sell 51 percent of KPC shares to the province.
Meanwhile, the central government recently decided not to give East Kalimantan preferential rights to buy KPC shares. The shares will be sold to state enterprises, Indonesian private investors and East Kalimantan. (*)