East Kalimantan administration must unveil more information on PT Intan: top legislator

The East Kalimantan administration must unveil more information about PT Intan, which had been appointed as the financier for the purchase of a 51 percent stake in coal mining giant PT Kaltim Prima Coal (KPC), to eliminate public suspicion, speaker of the local provincial parliament Sukardi Djarwo Putro said on Tuesday.

Sukardi was quoted by the local Kaltim Post daily as saying that the administration must also explain to the public the process of the appointment of PT Intan.

Reports earlier said that PT Intan is a property firm based in Jakarta. Two sons of top East Kalimantan administration officials are believed to work at the company.

Pressure for the local administration to unveil the people behind Intan emerges after Minister of Mineral Resources and Energy Purnomo Yusgiantoro was reportedly to have demand KPC to divest up to 51 percent shares this year. The East Kalimantan administration will purchase the shares. Under an agreement with Intan, the administration would get 10 percent of the 51 percent stake for free (equal to 5.1 percent), while Intan will provide around US$297 million to purchase the shares.

KPC, Indonesia's second largest coal producer is equally owned by Anglo-Australian miner Rio Tinto and Anglo-American energy giant BP.

Kaltim Post said that a German financing company was ready to provide loan to Intan to finance the share purchase.(*)