Govt sets up team to screen investors for KPC stake<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
The government has set up a team to screen financial backers from
\nthe administrations of the East Kalimantan provincial and East
\nKutai regency in the purchase of a stake in coal-mining giant PT
\nKaltim Prima Coal (KPC), Minister of Energy and Mineral Resources
\nPurnomo Yusgiantoro has said.<\/p>\n
"The due diligence team was set up last Thursday," Purnomo
\ntold legislators during a session with the House of
\nRepresentatives Commission VIII for mining and energy.<\/p>\n
The team comprises officials from the central government, East
\nKutai regency and East Kalimantan provincial administrations, he
\nsaid.<\/p>\n
Purnomo said that the team was tasked to, among other things,
\nset up criteria and requirements for potential investors, to
\nassess and evaluate investors and to make recommendations.<\/p>\n
KPC, which operates a large coal-mining site in the Sangatta
\narea of East Kutai regency in East Kalimantan, is obliged to
\ndivest a 51 percent stake to Indonesian investors. The stake is
\nvalued at US$419.2 million.<\/p>\n
But the divestment process has been delayed several times due
\nto various reasons. Both the East Kutai administration and the
\nEast Kalimantan provincial government have expressed interest in
\npurchasing the stake. A number of private investors are also
\neying the stake, but they need to purchase it through the local
\ngovernments.<\/p>\n
The central government is expected to acquire a 20 percent
\nstake in KPC, with the remaining 31 percent to be divided among
\npotential investors.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-sets-up-team-to-screen-investors-for-kpc-stake-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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