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Will the Coal Dust Ever Settle?

Tuesday, June 11, 2002

The central government set June 30 as the deadline for the share divestment process of Kaltim Prima Coal to be completed. But this might be hard to achieve given additional complications.

arsip tempo : 172855249122.

. tempo : 172855249122.

What is stalling the divestment of Kaltim Prima Coal (KPC)? It's actually a simple matter. The coal mining company, which is jointly owned by British Petroleum and Rio Tinto, to date has not divested its 51 percent shares as agreed upon in its contract with the Indonesian government—a clear breach of Law No.11 of 1967 on mining.

Under the Coal Agreement signed in 1982 between KPC and the Indonesian government, the company is granted the

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