East Kalimantan firm expresses concern over slowness in the transfer of KPC shares

The East Kalimantan administration-owned PT Melati Satya Bhakti expressed concern over the slowness of the divestment process of the shares of coal mining firm PT Kaltim Prima Coal (KPC).

Melati Satya president Sjahfur Hakim was quoted by Kaltim Post daily as saying that the company expected the divestment to be immediately completed because it had been delayed for 2 years.

KPC is required to divest up to 51 percent of its stake to Indonesian firms or citizens. In the first stage, the company would divest around 30 percent.

The East Kalimantan administration had expressed interest to buy the shares through its Melati Satya Bhakti, which is planning to team up with Jakarta private firm PT Intan, reportedly to be owned by David Liem, a nephew of the country's prominent tycoon Liem Sioe Liong.

Sjahfur expressed concern that if the divestment deal was not completed in the May-June deadline again, there's possibility that the KPC shares would be sold through the stock market, which would be open to foreigners to purchase the shares.

He said that if this happened it would be a great loss to East Kalimantan because the KPC products were of high quality. (*)