KPC still wait and see although East Kalimantan drops its legal suit
Thursday, July 25 2002 - 03:31 AM WIB
"We have not yet decided what steps will be taken until the court formally issues a statement saying that the provincial administration has withdrawn its legal suit against KPC," KPC?s deputy director for external relations Anang R. Noor told the newspaper on Wednesday.
KPC would also first study whether the East Kalimantan government?s decision to drop the legal suit was genuine or just a tactic. "We want to know if there is another demand behind the drop in the legal suit," he added.
Dermawan Nugroho, the lawyer of the East Kalimantan administration, made an announcement on a newspaper early this week that the provincial administration has withdrawn its legal suit against KPC. The move has been seen as a breakthrough for the resumption of the company?s divestment process.
KPC, which operates a large coal mining area in East Kalimantan, is equally owned by world mining giants Rio Tinto and BP. Under contracts of works awarded by the government, the company?s shareholders are required to divest 51 percent of their shares to local investors.
The deadline for the divestment was initially set at June 31 but the legal suit filed by the provincial administration against the company?s shareholders has caused a delay in the divestment process. The local government sued the company?s shareholders and the ministry of energy and mineral resources for prohibiting it from buying the 51 percent of KPC shares that would be divested. The court, on the request of the provincial administration, seized KPC?s shares posing another problem in the divestment program.
Anang said that besides waiting for the court?s confirmation on the provincial administration?s legal move, the management of KPC would also first consult with the government through the Ministry of Energy and Mineral Resources before making any new plan. (*)