East Kalimantan deputy governor says his concern over the administration?s poor handling of KPC affair

East Kalimantan deputy governor Chaidir Hafiedz expressed concern that the plan by the provincial administration to acquire a 51 percent stake in coal mining giant Kaltim Prima Coal (KPC) would create problems in the future particularly due to the lack of transparency.

Chaidir pointed out that the appointment of Jakarta-based investor PT Intan Jakarta to finance the acquisition had not been transparent.

?The administration should have made an open tender in selecting a partner,? he told the local Radar Kaltim daily.

Chaidir had made no secret about his strong disagreement over the way the administration handled the KPC acquisition plan particularly after Governor Suwarna AF did not consult him over the appointment of PT Intan. Instead, the governor sent provincial treasurer Sayid Safran to Jakarta to lead the negotiation team.

KPC is obliged to divest up to 51 percent stake this year to the East Kalimantan administration. But both the provincial administration and KPC shareholders, Rito Tinto and BP, have yet to reach agreement on the price.

There has also been pros and cons in the provincial legislative council over the lack of transparency in the appointment of PT Intan. Reports earlier said that if Intan fully finances the acquisition plan, the East Kalimantan administration would only received around 5 percent stake in KPC.

Chaidir said that he was deeply concerned if the KPC management would be controlled by PT Intan.

He said that under PT Intan, the quality of KPC community development program in the future may deteriorate.

?KPC community development program has been one of the best,? he said.(*)