PTBA urged to decide on KPC stake

The state-owned coal producer PT Tambang Batubara Bukit Asam (PTBA) must quickly decide whether to buy a 20 percent stake in the East Kalimantan-based coal company PT Kaltim Prima Coal (KPC), said the company?s commissioner.

PTBA?s chief commissioner Simon Sembiring said that the company should not give its right to buy shares in KPC to any other party because it would not be in line with the Cabinet decision.

?Therefore, I ask (the management) to go ahead with the plan or give it back to the government,? Simon told Bisnis Indonesia recently.

According to him, PTBA must take a bold decision on the divestment of KPC so that it would become a burden for the company. Before making a decision, the company must carefully see its financial capability to purchase the shares.

The Cabinet has decided that KPC should sell 51 percent of its shares in the divestment program. The government has nominated East Kalimantan to buy 31 percent and PTBA the other 20 percent.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the PTBA still had a strong interest to buy the 20 percent stake in KPC. (*)