East Kalimantan Council forms special team on KPC

The East Kalimantan provincial Council has formed a special team on Kaltim Prima Coal (KPC) whose mandate is to oversee the divestment process of the giant coal mining company and to investigate the alleged manipulation of export data by the company.

The local Radar Kaltim daily reported on Saturday that the special team is led by legislator Agus Tamtomo.

Agus said that the first program of the team was to summon top officials of the provincial administration on Monday to get first hand information about the progress in the divestment process of KPC.

After a long delay, KPC finally agreed to divest up to 51 percent of its stake to the local East Kalimantan administration. The local government has asked Jakarta-based investor called PT Intan Bumi Inti Perdana to finance the acquisition.

Agus said that it was possible also that the tam would summon the management of PT Intan, which had been questioned by many in the province as the government had so far failed to explain to the public the background of the company and its deal with the company.

Agus also said that the team would summon KPC officials over alleged manipulation of export data. He pointed out that the company had claimed that it only started exporting coal from the province in 1992, but facts showed that KPC had already started making export since 1987.

He said that the team would scrutinize the company's coal mining contract.(*)