PDIP party questions role of PT Intan in KPC divestment

The faction of the Indonesian Democratic Party of Struggle or PDIP in the East Kalimantan provincial council questioned the decision of the local administration to appoint private investor called PT Intan Bumi Inti Perdana as the sole financier of the administration's plans to purchase a 51 percent stake in coal giant company PT Kaltim Prima Coal (KPC).

The local Kaltim Post daily quoted faction head Soemarsono as saying that the provincial government should also appoint one or two other private investors, in addition to PT Intan, to finance the acquisition.

He said that the sole appointment of PT Intan has raised various suspicions including the alleged role of two senior administration officials in the company.

PDIP is the largest political party in the country which won the largest vote at the last general election. Soemarsono talked the paper following a presentation made by East Kalimantan Governor Soewarna AF about the acquisition plan.

The East Kalimantan provincial administration has the first priority to purchase the 51 percent shares in KPC. The administration has appointed PT Intan to fully finance the acquisition plan, and in return the province will obtain 5 percent of the shares for free.

But there has been suspicions that the local government had given a very favorable deal to PT Intan. Local papers have also lambasted the government for not providing enough information to the public about the process for the appointment of PT Intan, and also about the background of the company.(*)