There should be a time limit for payment of KPC shares: BUMI

The administration of East Kutai regency must give certain date to Sangatta-based coalminer PT Kaltim Prima Coal (KPC) regarding the payment of US$104 million for buying 18.6 percent stake in the latter company, Bisnis Indonesia newspaper reported in its Monday edition.

“There should be a time limit regarding payment of $104 million for the purchase of 18.6 percent shares, so that it will not drag on,” Bumi Resources (BUMI) president commissioner Suryo B. Sulisto said.

JSX-listed BUMI is one of the owner of KPC.

Suryo said KPC will certainly go ahead with the divestment policy as per the agreement reached with the government.

When the Bisnis contacted East Kutai regent Mahyudin, he said the regency is still negotiating with two financial institutions from London.

“We are seeking for a US$75 million loan from Britain. Earlier we already got $45 million from the U.S. So if the negotiations are completed, within a short time we will pay $104 million for the purchase of the 18.6 percent shares," he said.

Mahyudin also made it clear that the loans will be taken by a company established by the regency and that the company will get the ownership of KPC. (*)