Indonesia coal stake sale highlights uncertainty over production quotas
A proposed deal would give tycoon Andi Syamsuddin Arsyad, known as Haji Isam, a 30 per cent stake in Bayan Resources, Indonesia’s third-largest coal producer. The agreement comes as miners await government approval of production quotas, with the industry warning that delays could hurt the business outlook.
A major deal involving Indonesia’s coal industry has raised questions about the sector’s outlook as companies await government approval of production quotas, the South China Morning Post reports. Low Tuck Kwong and his daughter, Elaine Low, the biggest shareholders of Bayan Resources, agreed on September 16 to sell a 30 per cent stake in the company to fellow tycoon Andi Syamsuddin Arsyad, better known as Haji Isam. Bayan Resources is described as Indonesia’s third-largest coal producer.
The transaction would give the company a powerful new partner, although the supplied material does not state its value or when it is expected to close. The deal comes while the industry is concerned about delays in the government’s approval of production quotas. Industry participants fear that a prolonged delay could have a severe effect on business prospects, but the available report gives no details of the approval timetable.
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