Govt may ask Antam to take part in KPC divestment
Thursday, October 30 2003 - 02:40 AM WIB
KPC’s divestment team chairman Djoko Darmono said his team will report the latest situation regarding the divestment of 51 percent of KPC shares to a plenary session to be chaired by the coordinating minister for economy. The plenary session, which has a final say on the divestment of KPC ownership, may ask PT Antam to take part in the KPC’s divestment in case PTBA fails in its effort to acquire KPC.
“We have handed over the decision to the forum (plenary session), including the involvement of PT Antam in the divestment of the KPC ownership,” Joko told reporters on Wednesday in Jakarta.
The crux of the problem is that PTBA and the East Kalimantan provincial administration both are vying for a majority stake in KPC.
According to Djoko, East Kalimantan and PTBA had refused to buy the remaining 32.4 percent of KPC shares – 20 percent for PTBA and 12.4 percent East Kalimantan. East Kutai regency, where the KPC is located, had already purchased 18.6 percent stake in KPC.
Therefore, the government will explore alternative ways to complete the divestment of the KPC’s ownership.Djoko added that the divestment process will continue and the purchase of 18.6 percent shares by East Kutai regency would not be questioned as the deal was in accordance with the government rules.
Earlier, PTBA had submitted two alternative ways of taking a 51 percent stake in KPC. Under the first alternative, PTBA will itself buy 51 percent shares if allowed. The second alternative was to buy a majority stake through a consortium comprising of PTBA, East Kalimantan, East Kutai administrations and PT Intan Bumi Inti Perdana, a private company.
If the government favors the consortium alternative, PTBA will have a 7.8 percent ownership in the consortium and it will be subject to the approval of other members of the consortium which include East Kalimantan provincial administration, East Kutai regency and Kaltim partner.
Last year, PTBA, Perusda Melati Bhakti (East Kalimantan), Perusda Pertambangan and Energi (East Kutai regency) and PT Intan Bumi Inti Pradana (David Salim) had formed a consortium with a name PT Melati Intan Bhakti Satya.
PTBA will have a 7.8 percent ownership (equivalent to 3.98 percent KPC shares), East Kalimantan’s and East Kutai companies will have 12.2 percent (equivalent to 6.22 KPC shares) and the 80 percent (40.20 percent KPC shares) by PT Intan Bumi in the PT Melati consortium.
But the consortium’s fate hangs in the air following the divestment of 18.6 percent KPC shares to the East Kutai regency for around US$104 million on October 13 by its new owner PT Bumi Resources. (*)