Minister Purnomo given authority to oversee KPC divestment

Coordinating Minister for the Economy Aburizal Bakrie has given full authority to Minister of Energy and Mineral Resources Purnomo Yusgiantoro to oversee the divestment process of East Kalimantan-based coal mining giant PT Kaltim Prima Coal (KPC), the Koran Tempo daily reported on Monday.

This means that a special government team set up by the Coordinating Minister is no longer effective.

In a letter dated Nov. 5, 2004, Aburizal argued that the Minister of Energy and Mineral Resources was technically responsible for the development of the mining sector in the country.

KPC is required to divest a 51 percent stake to local investors. But the divestment process has been stalled for years due to various problems. KPC is now controlled by PT Bumi Resources, a listed company linked to Bakrie.(*)