East Kalimantan still demand a 51 percent stake in KPC
Saturday, February 3 2001 - 04:00 AM WIB
East Kalimantan Governor Suwarna AF said Friday that the province still insisted that coal giant PT Kaltim Prima Coal (KPC) must divest up 51 percent stake this year, the local Jaya Post daily reported.
"We still demand a 51 percent stake in KPC this year," Suwarna said.
He said that according to its mining contract with the central government, KPC is obliged to divest a 51 stake this year.
According to its mining contract, KPC is required to divest part of its shares starting last year. The East Kalimantan government had demanded the KPC stake. But the divestment had been delayed after KPC and the East Kalimantan government have a different interpretation over the size of divestment.
Jaya Post said that both KPC and the ministry of mineral resources and energy insisted that the size of divestment this year was only 44 percent.
The paper said that the East Kalimantan administration and parliament plan to meet with KPC and the central government soon over the divestment program. (*)