Government to decide KPC?s divestment plan on Monday

The central government will issue its final decision related to the divestment of PT Kaltim Prima Coal?s 51 percent stake on Monday next week. All of the existing bidders will likely be allowed to buy the stake with a different share portion, Media Indonesia reported on Saturday.

"All investors, both government?s companies, and private companies, will be involved in the divestment plan. So there will be no single winner," said Nurwinakun, the spokesman for the ministry of energy and mineral resources.

The final decision related to the divestment plan would be proposed by Minister of Energy and Mineral Resources Purnomo Yusgiantoro during a cabinet meeting on Monday, he said, adding that the meeting which would be led by Coordinating Minister for Economy Dorodjatun Kuntjoto-Jakti, would also be attended by Minister of Finance Budiono, Minister for State Enterprises Laksamana Sukardi and Home Affairs Minister Sabarno.

The meeting would also discuss the percentage of shares, which would be allocated to each bidder. "It is important so that the divestment plan will truly reflect the aspiration of all parties particularly the East Kalimantan people," he said.

KPC, which operates a large coal mining area in East Kalimantan, is equally owned by world mining giants Rio Tinto and BP. Under its contracts of works, the company?s shareholders are required to divest 51 percent of their shares to local investors.

However, the mandatory divestment program does not run as expected due to dispute with the East Kalimantan provincial administration, which recently filed a legal suit against the existing shareholders for allegedly barring it from bidding the 51 percent share.

Investors which bid for KPC?s shares include Eat Kalimantan administration, the East Kutai regency administration, state owned companies PT PLN, PT Batu Bara Bukit Asam, PT Tambang Timah and a number of private companies including PT Nusantara Energi owned by Prabowo Subianto. (*)