E. Kutai has yet made payment for KPC stake

Publicly-listed PT Bumi Resources Tbk, the new owner of the East Kalimantan-based coal producer PT Kaltim Prima Coal (KPC), said it has not yet received US$104 million from the East Kutai regency, Bisnis Indonesia newspaper reported on Thursday.

East Kutai regency signed an agreement with PT Bumi on October 13, 2003 to purchase 18.6 percent of KPC shares for $104 million.

Bumi’s head of investor relations Peter Tabalujan revealed that his company has given some more time to East Kutai administration to make the payment. But Bumi didn’t give a deadline for the payment.

"We have still given time to East Kutai administration to prepare the funds. We heard that East Kutai‘s authotities are in the process of forming a consortium with a local bank to get money for the acquisition of KPC shares," Peter told Bisnis Indonesia in Jakarta on Wednesday.

Bumi’s decision to not to give a deadline for the payment of $104 million has lead to the speculation that it is a part of its scenario to prevent other parties from purchasing KPC shares.

"It is a Bumi’s scenario, under which it has given time to East Kutai administration to make payment. It is not known, what is the motto (behind the decision)," Norico Gaman, minig analyst at the BNI Securities. (*)