South Sumatra demands portion of PTBA?s shares

South Sumatra provincial administration has demanded the government to sell a portion of the state owned coal mining company PT Bukit Asam (PTBA)?s shares to the local authority in a bid to promote the sense of belonging of the local people toward the company, Koran Tempo reported on Friday.

"We hope that between 20 and 30 percent of PTBA?s shares will be sold to the provincial administration during the company?s initial public offering (IPO) later this year," the chairman of the South Sumatra Legislative Council, Adjis Saip said in Palembang on Thursday.

He said that PTBA, which operates massive coal mining concession in the province?s regency of Tanjung Enim, had showed positive progress not only in the production activities but also in the company?s transparency.

President Director of PTBA, Mahbud Iskandar, said that the local government?s proposal to buy portion of the coal mining company?s shares was being discussed. "We don?t know yet if the local government will be given exclusive rights to buy part of PTBA?s shares," he was quoted as saying.

Meanwhile Bisnis Indonesia reported on Friday that PTBA management has named BNP Paribas as the co-underwriter of the company?s initial public offering which will be launched in November this year.

Paribas is one of 12 foreign securities which last week joined a "beauty" contest to become the co-underwriter of PTBA?s IPO. Paribas will work with state owned securities company PT Danereksa which has been appointed as the main underwriter of PTBA?s IPO.(*)