Govt sticks to plan to sue E. Kalimantan over KPC case: Purnomo

The central government sticks to its plan to sue in court the East Kalimantan provincial administration if it does not drop by July 31 a lawsuit against Minister of Energy and Mineral Resources Purnomo Yusgiantoro and shareholders of coal mining giant PT Kaltim Prima Coal (KPC), Purnomo said on Saturday.

July 31 is the deadline for KPC to divest 51 percent of its shares to Indonesian state enterprises, Indonesian private investors and East Kalimantan as recently agreed between the central government and KPC shareholders Rio Tinto Plc and BP Plc.

?Our plan to sue in court the East Kalimantan administration remains,? Purnomo told reporters on the sidelines of a ceremony in Cepu, Central Java, in which he dedicated new graduates of Oil and Gas Academy (AKAMIGAS).

Purnomo did not say however exactly when lawsuit against East Kalimantan will be filed.

The central government had earlier set July 15 as deadline for the East Kalimantan administration to withdraw the suit it had filed against Purnomo and KPC shareholders in the South Jakarta district court last year. It threatened to launch a counter lawsuit if the province did not heed its warning.

So far, East Kalimantan has given no sign to drop its legal suit in the South Jakarta court, which led to the court seizing 51 percent shares of KPC. Meanwhile, the province?s officials insist that it become the preferred bidder for KPC shares although the central government has decided that the shares will also be sold to state enterprises and Indonesian private investors.

The province had accused KPC shareholders of colluding with Purnomo to block it from buying 51 percent of KPC shares.

KPC, equally owned by Rio Tinto and BP, operates a huge coalmine in Sangatta in East Kutai Regency, East Kalimantan. (alex)