Govt assured on KPC?s contractual obligation

PT Bumi Resources, which is going to take over coal mining firm PT Kaltim Prima Coal (KPC), Friday assured the government that it would honor KPC?s obligation to sell 51 percent of its shares to Indonesian investors.

Bumi?s officials expressed its commitment during their meeting on Friday with Minister of Energy and Mineral Resources Purnomo Yusgiantoro, ministry secretary general Djoko Dharmono told reporters.

?In their meeting, they told the minister that they would honor KPC share divestment program it had agreed on with the government,? Djoko said.

Djoko said further that Purnomo would next Tuesday meet with KPC shareholders Rio Tinto and BP Plc to discuss their deal with Bumi. The companies equally own KPC, one of Indonesia?s most profitable coalminer operating in East Kalimantan.

Recently, Rio Tinto and BP Plc announced that they had sold all shares in KPC to Bumi for US$500 million, far below the amount set for the entire KPC shares offered last year to Indonesian investors through the government, under the company?s obligatory divestment program. Their announcement surprised the government and many other parties.

Last August, KPC shareholders formally offered 51 percent of KPC shares to Indonesian investors through the government. State coalminer PT Tambang Batubara Bukit Asam (PTBA) and East Kalimantan provincial administration are in the process of respectively buying 20 percent and 31 percent of the 51 percent shares.

Meanwhile, KPC?s lawyer Todung Mulya Lubis said Bumi?s decision to acquire KPC shares was legal because it was an off-shore deal.

Todung said Bumi was actually going to take over KPC by buying out two overseas holding companies belonging to BP and Rio Tinto. (godang)