East Kalimantan defends plans to team up with PT Intan in acquiring KPC

The East Kalimantan administration defended on Thursday its plans to team up with Jakarta-based PT Intan to acquire shares in giant coal mining firm PT Kaltim Prima Coal (KPC).

East Kalimantan administration regional secretary Sjafran was quoted by the Kaltim Post daily as saying that the administration would greatly benefit from the cooperation with Intan because the latter would provide the financial necessity to make the acquisition, while the government would get part of the shares and dividends for free.

"This is a great opportunity for us," Sjafran said.

KPC is required according to the law to divest up to 51 percent of its shares. The company plans to divest 37 percent in the first stage.

The East Kalimantan administration has been determined to buy the shares, but had also repeatedly said that it would team up with a private investor to realize the acquisition. Many have earlier criticized the plans, saying that the administration should first allow local people and businessmen to participate in financing the acquisition.

Meanwhile, Sjafran declined to disclose who owned Intan.

When asked if Intan was owned by the country's giant conglomerate Salim Group," Sjafran only smiled and said: "If it is true, so what."(*)