Govt reluctant to further involve in KPC divestment<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government signaled on Friday that it would not interfere
\nfurther in the divestment process of PT Kaltim Prima Coal's (KPC)
\nstake, calling on the coal mining company to directly negotiate
\nwith the potential buyers of the 51 percent share sale.<\/p>\n
Djoko Darmono, the secretary general of the Ministry of Energy
\nand Mineral Resources, said the government considered its job to
\nbe limited to selecting the companies to buy KPC's stake. It
\nwould not be involved in price negotiations between KPC and the
\nselected companies.<\/p>\n
Djoko made the statement amid reports that David Salim, a
\nrelative of tycoon Liem Sioe Liong, was seeking to buy some of
\nthe stake via a partnership with the companies owned by the East
\nKutai regency and East Kalimantan province.<\/p>\n
\"The government's job is limited to selecting buyers for the
\n51 percent stake in KPC. As for the partners of the regional
\nadministrations, the central government has no idea about them,\"
\nDjoko was quoted by Antara as saying.<\/p>\n
The government has appointed state-owned coal mining company
\nPT Bukit Asam to buy a 20 percent stake and allowed Perusahaan
\nDaerah Pertambangan Energi Kutai Timur, a company owned by the
\nEast Kutai regency and Melati Bhakti Satya, which is owned by the
\nEast Kalimantan province, to buy the remaining 31 percent.<\/p>\n
KPC, which is equally owned by Anglo-Australian mining giant
\nRio Tinto and Anglo-American energy giant BP PLC, is located in
\nSangatta, East Kutai regency, East Kalimantan.<\/p>\n
Under the contract, the company must sell 51 percent of its
\nstake to either the government, state-owned companies,
\nIndonesian-controlled private companies or Indonesian citizens
\nthis year.<\/p>\n
PT Intan Bumi Inti Perdana, which is owned by David Salim,
\nreportedly has been appointed by the East Kalimantan provincial
\nand East Kutai regency administrations to buy the 31 percent
\nstake.<\/p>\n
\"We have chosen Intan because we believe the company has a
\nstrong commitment to the province,\" East Kalimatan provincial
\nsecretary Syaiful Teteng said.<\/p>\n
David has been rumored to be the main financial backer for
\nEast Kalimantan and East Kutai in their struggle to gain control
\nof the 51 percent stake in KPC. But he remains a mysterious
\nfigure, never granting an interview with the local press.<\/p>\n
There has been speculation that he also will finance the
\npurchase of another 20 percent stake in KPC by Bukit Asam -- a
\nmove that would almost certainly allow him to control the
\ncompany.<\/p>\n
Djoko said a thorough screening process should be carried out
\non East Kutai and East Kalimantan's companies and their partners
\nto ensure financial capability and accountability.<\/p>\n
But, he said, the government would not probe the company
\nbecause it was a business matter.<\/p>\n
\"It is KPC which has to carry out the due diligence
\nscreening,\" Djoko said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-reluctant-to-further-involve-in-kpc-divestment-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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