Kideco divestment draws no bidder

East Kalimantan based coal mining firm PT Kideco Jaya Agung said on Tuesday that thus far, no parties had expressed interest to acquire 37 percent of its shares, which the company is currently offering.

?We are ready to divest, but thus far, nobody seemed to be interested,? said Ali Patan, company?s administration manager.

In 2001, Kideco is scheduled to offer 37 percent of its shares to Indonesian owned business. In December 2001, the company and the government had agreed to value 100 percent of the company at US$ 415 million. Divestment offer for 2001 will end March 2002.

Under Indonesian coal contract of work, foreign investment coal mining firm must gradually divest up to 51 percent of shares to Indonesian owned entity after 10 years of production.

An industry source contacted by Petromindo.Com said it was understandable that no one was interested.

? No local firm would buy 37 percent now. They all want controlling ownership, which would happen in 2003, when Kideco will be obliged to divest 51 percent shares,? said the source.

Earlier, state coal mining PT Tambang Batubara Bukit Asam (PTBA) said that it would consider to acquire Kideco?s stake, but thus far it had yet make any offer.

?That was because PTBA is currently busy trying to purchase 60 percent stake of another East Kalimantan based coal mining firm PT Berau Coal,? said the source.

Kideco is one of Indonesia?s top coal producers, operating a coalmine in Pasir regency, East Kalimantan.The company, which is currently wholly owned by Sam Tan Co.Ltd of South Korea, plans to produce some 10 million tons of coal in 2001.

Kideco sells most of its coal to Korea, Taiwan, Slovenia, Japan and The Philippines. Domestically it sells coal to Indonesia Power. (godang)