East Kalimantan accuses Jakarta official for trying to block KPC acquisition
Friday, October 20 2000 - 04:30 AM WIB
Speaker of the East Kalimantan provincial House of Representatives Djarwo Putro lambasted the secretary general of the ministry of energy and mineral resources Djoko Darmono for trying to block the provincial administration plans to acquire a majority stake in coal mining giant PT Kaltim Prima Coal (KPC).
"It is clear to us that he (Djoko) is defending KPC," Djarwo told the local Kaltim Post daily following a meeting with Minister of Energy and Mineral Resources Purnomo Yusgiantoro and East Kalimantan Governor Suwarna AF on Thursday.
He said that the East Kalimatan parliament would soon summon Djoko and KPC for being uncooperative to realize the KPC divestment program.
According to a the contract with the government, KPC must divest some 37 percent of its stake this year. The local East Kalimantan administration has demand that they get the priority in acquiring the stake. The province has even demanded KPC to divest a majority stake immediately this year.
In a meeting with Purnomo, the East Kalimantan administration and parliament asked the minister to push KPC to divest 44 percent stake this year and another 7 percent early next year.
Djarwo said that the minister could understand the East Kalimantan demand. But he said that Djoko nearly spoiled the meeting when making the documentation of the meeting as he tried to drop the subject on the demand for KPC to divest a majority stake immediately.
"I can see that the secretary general is trying to drop the subject on the 44 percent stake and 51 percent stake," he said.
He said that the East Kalimantan delegation had to wait till late on Thursday to check the final document made by Djoko's office. He added that a document prepared separately by the East Kalimantan could not be accepted by Djoko.
Elsewhere, Djarwo said that the meeting with the minister also discussed the issue of environmental pollution by foreign and state enterprises in the province and the students protest over the recent fuel price increase. (*)