Govt says it?s impossible for Soros to buy KPC

Government said on Wednesday it was impossible for international financier George Soros to buy shares of coal mining company PT Kaltim Prima Coal, which was scheduled to divest 51 percent shares this year.

? Foreigners could not own KPC stakes because coal contract of work (CCoW) clearly states the shares must be sold to Indonesian nationals or Indonesian owned business entity,? said Wimpy S. Tjetjep, Director General of Geology and Mineral Resources at the Ministry of mines and Energy.

Under CCoW, KPC, which is equally owned by Rio Tinto and BP, must divest 51 percent stake this year.

Wimpy said the chance for Soros is nil even if he tried to acquire KPC shares by setting up Indonesian company.

Earlier reports said that Soros, together with Indonesian investment banking Bhakti Investama formed a local company PT Intan to acquire KPC shares.

Bhakti Investama quickly denied the reports.

Government and KPC shareholders are currently negotiating on final price of the 51 percent stake.

KPC operates a giant coalmine in East Kalimantan. (*)