None of BUMNs have received approval to buy KPC shares
Tuesday, September 17 2002 - 04:22 AM WIB
"Basically they can file their bids to buy part of the coal company?s shares as long as they have enough funds. But so far, none of them have received approvals," the minister told reporters following a hearing with members of the House of Representatives (DPR).
Meanwhile Laksamana?s deputy for mining, telecommunications and strategic industries, Roes Aryawijaya, said in Jakarta that all state owned companies that each BMUNs had their own policy in determining their programs.
?They for example can take part in the bidding to buy KPC?s shares without the permits from the minister. But if they win, they need a formal approval to use their funds to buy the shares allocated to them," he added.
KPC, which operates a large coal mining area in East Kalimantan, is owned and operated by a joint venture equally owned by international mining giants Rio Tinto and BP. Under contracts of works awarded by the ministry of energy and mineral resources, the company?s shareholders are required to divest 51 percent of their shares to local investors.
The divestment has been delayed for several times due conflicts resulting from the local government ?s demand to control all of the 51 percent stake to be divested from the company. The government?s special team which handles the coal company?s divestment plan then decided that 31 percent of the shares will be allocated to the East Kalimantan authority and the remaining 20% to the central government.
Due to lack of funds, the central government has delegated the rights to purchase the 20 percent stake to state-owned companies. Some BUMNs including state owned electricity company PLN and coal producer PT Tambang Bukit Asam have expressed their interests to take part in the bidding. (*)