Govt sets deadline for East Kalimantan to buy KPC's shares

The government has given until April 3 for the East Kalimantan provincial administration to decide whether to buy 30 percent shares in coal mining company PT Kaltim Prima Coal, Neraca daily reported.

The paper quoted by new coal director of the Ministry of Mines and Energy Suryantono said at the weekend if no decision was taken by the provincial administration by the deadline, the government would offer the shares to other parties.

Suryantono said the provincial administration, which had planned to enter into an alliance with a foreign investor, has thus far appeared to be the most-serious potential buyer of KPC's shares The other prospective buyers are PT Austindo Mining Corporation and PT Harita.

The paper did not reveal the prospective foreign partner of the provincial administration.

Under the contract of work, KPC is required to farm out 30 percent of its shares to the state companies, national private companies or Indonesian citizens. (*)