Govt regrets E. Kutai selling KPC shares to Bumi

The government regrets East Kutai regency in East Kalimantan selling 13.6 percent stake in coal producer PT Kaltim Prima Coal (KPC) to PT Bumi Resources, the controlling owner of KPC, a senior official said Thursday.

?They should have consulted the government before selling the KPC shares. We will probe into the case,? Geology and Mineral Resources Director general Simon Sembiring told reporters.

The 13.6 percent stake was part of the 18.6 percent shares in KPC acquired last year by East Kutai regency. The 13.6 stake was valued at US104 million, the same amount spent by East Kutai on the 18.6 percent shares, regency officials said.

KPC operates a huge coalmine in Sangatta, East Kutai.

Publicly listed Bumi Resources is in the process of divesting 51 percent of KPC shares to Indonesian investors.

The government had decided to allocate 31 of the 51 percent shares to East Kalimantan Province and the remaining 20 percent to state coal producer PT Batubara Bukit Asam. (godang)