Minister Sukardi infuriated by KPC shareholders? move
Wednesday, July 23 2003 - 03:55 AM WIB
Laksamana was quoted as saying that KPC shareholders: Rio Tinto and BP Plc should honor their contract with the government that they would sell 51 percent of KPC shares to Indonesian investors, the process of which had started from last August.
?Rio Tinto and BP know their obligation to divest KPC shares. We will soon summon them and ask them to explain about the divestment of KPC shares to Bumi Resources,? the minister told reporters.
Last August, Rio Tinto and BP formally offered 51 percent of KPC shares to Indonesian investors through the government which then allocated 31 percent of the 51 percent shares to East Kalimantan provincial administration and 20 percent to state coalminer PT Batubara Bukit Asam. The share divestment, however, could not be completed by the January 2003 deadline due various problems.
KPC share divestment had been delayed for at least three times due to dispute over the percentage of the shares that must be sold to the central government and East Kalimantan.
On Monday, the government and the East Kalimantan provincial administration were surprised by an announcement that Rio Tinto and BP had sold their respective overseas registered holding companies which control the KPC shares to Bumi Resources for US$500 million.
In comparison, BP and Rio Tinto agreed last year with the government that the value of 100 percent shares of KPC was $822 million.
Meanwhile, the secretary general of the Ministry of Energy and Mineral Resources, Djoko Dharmono, said Tuesday the process of divesting the 51 percent shares of KPC to the government and East Kalimantan must continue regardless of the latest move taken by BP and Rio Tinto.
Publicly listed Bumi Resources, an affiliate of Indonesian conglomerate Bakrie Group, will formally take over KPC in October. It has business interest in mining, oil and tourism.
KPC, Indonesia?s most profitable coalminer, operates a huge coalmine in Sangatta, East Kalimantan. (*)