Govt to seek solution over dispute between KPC, East Kalimantan

The government will try to be a neutral party in the disagreement between giant coal mining firm PT Kaltim Prima Coal (KPC) and the East Kalimantan administration over the company's divestment obligation.

Director general of mining Surna T. Djajadiningrat said that the government would seek for a "win-win solution."

Asked if the government had discussed the possibility of KPC increasing its share divestment to 44 percent, Surna said that no such proposal had been made during negotiation with the company and the East Kalimantan administration.

KPC is obliged to gradually divest up to 51 percent of its stake to Indonesian investors. The company has said that according to its contract with the government, it would only have to divest 37 percent stake this year.

But the East Kalimantan administration said that according to the contract, KPC must already divest 51 percent of its stake this year. (*)