Govt wants no change in KPC share price

The government said Tuesday it did not want a rise in the price of shares of East Kalimantan-based coalminer PT Kaltim Prima Coal (KPC) to be sold by PT Bumi Resources Tbk to Indonesian investors.

Bumi should keep the price of the entire shares of KPC at no more than US$822 million as initially agreed on between the government and former shareholders of KPC, Rio Tinto and BP Plc, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said.

Bumi, which recently bought the entire shares of KPC from Rio Tinto and BP at $500 million, said it would sell 51 percent of its shares to state coalminer PT Tambang Batubara Bukit Asam (PTBA) and the East Kalimantan provincial administration only when they had reached an agreement with the government on a “reasonable” price level.

Bumi president director Ari Hudaya on Monday refused to mention the price they wanted for KPC shares.

Bumi on Monday completed its acquisition of the entire shares of KPC from Rio Tinto and BP. The acquisition made Bumi’s top coal producer as it also controls South Kalimantan coalminer PT. Arutmin Indonesia, which had set a target to produce 15 million tons of coal this year.

Meanwhile, Purnomo said Tuesday PTBA and the East Kalimantan administration would be required to inform the government in writing that they were willing to buy KPC shares from Bumi.

The government last year allocated 31 percent of KPC shares to East Kalimantan and 21 percent to PTBA.

KPC, one of Indonesia’s most profitable coal producers, operates a huge coalmine in Sanggatta, East Kalimantan. Its coal output is mostly for exports. (Godang)