Department of Energy Hampers Tender Offer of Inco's Share
Thursday, 14 December, 2006 | 15:26 WIB

TEMPO Interactive, Jakarta: There are problems with the tender for the offer of shares of PT International Nickel Indonesia Tbk (Inco).

The Department of Energy and Mineral Resources will not permit this mining company to buy all public shares in the market.

This was a final decision after the Department of Energy and Mineral Resources and Capital Market Supervisory Agency (Bapepam) held a special meeting yesterday (12/13) in Jakarta.

Director General of Mineral, Coal and Geothermal at the Department of Energy Simon Sembiring stated that the tender offer of Inco's shares was a contradiction to the regulation regarding working contracts of mining companies in Indonesia.

Working contracts state that minimally, 20 percent of share ownership must be controlled by the government or a local or public company.

According to Simon, should the tender offer be realized, the public or government share ownership on the nickel mining company will be automatically all be gone.

Although Inco is listed company that is bound by special regulations at the capital market, it must still follow the regulation in the working contract.

“So, the tender offer of Inco's shares violates the regulation,” said Simon when Tempo telephoned him yesterday (12/13).

He stated that Bapepam does not have to be afraid of forbidding Inco, which has intended to carry out the tender offer.

“This is because, it is supported by the strong regulation in the working contract,” he said.

In addition, Head of Bapepam Fuad Rahmany was reluctant of explaining Bapepam's decision as regards the Department of Energy.

“Later. Perhaps (the explanation will be) next week,” he said when met separately yesterday (12/13).

YULIAWATI