Youth organizations support East Kalimantan?s bid to acquire KPC stake
Thursday, April 18 2002 - 01:28 AM WIB
The local Kaltim Post daily said Thursday that the message was expected to be later delivered to President Megawati Soekarnoputri.
Head of the local KNPI youth organization Amir P. Ali said at a press conference that the speaker of the provincial legislative council and himself planned to go to Jakarta to meet Megawati.
KPC, which is equally owned by Anglo Australian Rio Tinto mining group and Anglo American energy giant BP Plc. and operates a vast coal mining site in the Sangatta area of East Kalimantan?s East Kutai Regency, must divest a 51 percent stake either to the government or other local buyers in June.
The divestment program was supposed to be completed at the end of March but was delayed due to protracted dispute between the provincial administration of East Kalimantan and KPC.
The administration has demanded it becomes a preferred bidder for the controlling stake in KPC, while the latter wants to hold an open tender. So far, there are five investors which have expressed interest to purchase the stake.
The government has set up a special team to resolve the problem. Reports earlier said that the team?s recommendation would be discussed at a cabinet meeting to be chaired by Megawati.
Meanwhile, PT Bara Kaltim Sejahtera, a company owned by the East Kalimantan provincial administration, said it was ready to purchase the KPC stake and would no longer team up with PT Intan Bumi Inti Pradana (IBIP).
The statement was made by Bara Kaltim?s president Popo Parulian at the same press conference. Popo did not elaborate.
The provincial administration has previously signed an MoU with IBIP to team up in the purchase of the KPC stake. IBIP will provide full financing, and it will also hand over 10 percent of the KPC stake to East Kalimantan.
IBIP is a company owned by David Salim, the nephew of business tycoon Sudono Salim.
But in a latter development, other investors say they would offer a better term than IBIP?s.
PT Nusantara Energi has offered a 15 percent stake to the provincial administration and at least $2 million in community development fund if it wins the KPC stake. Nusantara is a company led by ex-army general Prabowo Subianto.
Another investor called PT Batu Bara Borneo Batuah (B4) had also offered a better term than IBIP?s. B4 is a company owned by businessman Henry Leo and was reportedly linked to former minister Tanri Abeng.(*)