PT Multicapital must pay in cash by Monday for the recent purchase of a 10% stake in gold miner PT Newmont Nusa Tenggara or pay a penalty, a government official said Friday.

The official, who declined to be named told Dow Jones Newswires that an 18% annual penalty will be imposed on top of the $391 million that Multicapital has to pay for the stake if it fails to settle the purchase by Monday.

Multicapital and PT Daerah Maju Bersaing formed a consortium that bought a 10% stake in PTNNT last week.

-By Deden Sudrajat, contributing to Dow Jones Newswires; 62-21 39831277; I-Made.Sentana@dowjones.com