Pasir regency files fresh lawsuit against Kideco?s Korean shareholders

After first lawsuit was rejected by Balikpapan district court, Pasir regency administration had filed new lawsuit against Samtan Corp and Samchully, both are South Korean companies which hold majority stakes in East Kalimantan coal miner PT. Kideco Jaya Agung , a lawyer said on Monday.

?The lawsuit was filed at Pasir district court, with first hearing scheduled on August 28,? said Frederick J. Pinakunary, from Lubis, Santosa, Maulana Lawfirm, which represented the defendants.

Frederick did not disclose the detail of the lawsuit but said that the lawsuit was in connection with Kideco?s divestment process.

He further said that thus far, he had not heard that East Kalimantan provincial administration would also file fresh lawsuit.

Earlier this month, Balikpapan district court turned down lawsuit jointly filed by East Kalimantan provincial administration and Pasir regency administration against Kideco, on the ground that the court has no jurisdiction to try the case. The plaintiffs had complained to the Balikpapan court that Kideco had failed to offer its shares to the province and to Pasir regency. They demanded Kideco to pay compensation in excess of US$300 million, and insisted that the Balikpapan court annul a previous divestment transaction.

Under the coal contract of work, Kideco is obliged to gradually divest at least 51 percent of its shares to Indonesian companies after ten years of commercial operations. In 2001, the company offered 34 percent shares, but only 10 percent was sold later in 2003 to two companies, Sumber Mitra Jaya and Muji Inti Utama.

The lawsuit caused the company to delay divestment process of the remaining 41 percent of Kideco?s shares.

Kiedco operates a huge coalmining in Pasir regency, East Kalimantan. (godang)