Government forms team to handle KPC divestment program
Saturday, April 29 2000 - 06:00 AM WIB
The Ministry of Mines and Energy had formed a joint team to handle the divestment program of coal mining company PT Kaltim Prima Coal, which operates a huge coal mine in East Kalimantan, the ministry's secretary general Djoko Darmono said on Friday.
Djoko said the team comprised the officials of the ministry, the East Kalimantan provincial administration and the company.
The team would discuss about the funds for the acquisition of KPC's shares, its operation and its share distribution.
Djoko was quoted by Bisnis Indonesia as saying that the government was concerned about the slow implementation of the divestment program.
He said the deadline for the divestment had been extended to end-April from March.
Under the contract of work signed between the government and KPC, the company had to sell up to 51 percent of its shares to either Indonesian government or Indonesian-owned companies and Indonesian citizens after a certain period of production.
Republika reported that the ministry and the East Kalimantan provincial administration, which is also interested in the shares, were divided in their interpretation of the contract's clause o the divestment.
Djoko said under the contract, the ministry believed KPC was only obliged to divest 37 percent shares this year, but the provincial administration said KPC had to sell 51 percent of its shares this year.
Djoko doubted the provincial administration's financial capabilities to buy the shares, questioning the source of its funds it would use to buy the shares. (*)