East Kalimantan Governor meets Megawati over KPC divestment issue

East Kalimantan Governor Suwarna Abdul Fatah met with President Megawati Soekarnoputri last week over the stalled divestment obligation of coal mining giant PT Kaltim Prima Coal (KPC), the local Kaltim Post daily reported Sunday.

The paper quoted the governor as saying that he was also accompanied by the speaker of the provincial legislative council Sukardi Djarwo Putro, and East Kutai Regent Awang Faroek during the 40 minutes meeting at the presidential palace.

The paper did not say what Megawati had said, but the governor complained about the slow progress in the KPC divestment program.

The East Kalimantan administration has filed a legal suit at the South Jakarta district court against KPC shareholders, Rio Tinto and BP, and company management over delay in the divestment program.

KPC is obliged to divest 51 percent stake to the East Kalimantan administration. But the two sides have not reached agreement over divestment price.(*)