Cemex seeks local support<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
In an attempt to establish a better understanding with the
\nWest Sumatra and South Sulawesi people, cement producer PT Cemex
\nIndonesia, a local unit of the giant Mexico-based Cemex SA de CV,
\nheld a gathering here on Tuesday with local journalists and
\nlawmakers.<\/p>\n
Francisco Noriega, president of Cemex Indonesia, said during
\nthe meeting that the planned acquisition of the publicly-listed
\nstate-owned PT Semen Gresik via a put option mechanism would
\nbenefit the government and would not prejudice the interests of
\nlocal communities.<\/p>\n
\"I can tell you right now that we don't intend to put the
\ntrust of local communities in jeopardy. We never have,\" Noriega
\nsaid.<\/p>\n
\"Fears of losing your jobs and the sustainability of your
\nenvironment when new owners arrive are understandable.<\/p>\n
\"That's why we're having this meeting which is intended to
\nexplain to you that such fears are baseless,\" Noriega said.<\/p>\n
The West Sumatra and South Sulawesi people have protested
\nplans by Cemex to take control of Semen Gresik as the deal would
\nallow the Mexican company to also gain control of PT Semen Padang
\nand PT Semen Tonasa, subsidiaries of Semen Gresik which are
\nlocated in West Sumatra and South Sulawesi, respectively.<\/p>\n
They have been demanding that the government spin off the two
\nunits before proceeding with the plan to divest a 51 percent
\nstake in Semen Gresik to the foreign investor.<\/p>\n
The resistance from locals, and sometimes legislators, has
\nleft the Cemex-government deal hanging in limbo.<\/p>\n
At present, Cemex holds 25.53 percent of Semen Gresik shares,
\nthe investing public 23.46 percent, with the remainder in the
\nhands of the government.<\/p>\n
Noriega insisted that should the deal proceed, it would be a
\ngood for the government because Cemex will be buying the
\ngovernment's shares at a price of US$1.72 per share, or almost
\nthree times more than their market price.<\/p>\n
Under this assumption, the government will receive some $529
\nmillion, a much-needed cash boost to the government's receipts
\nfrom privatization.<\/p>\n
Semen Gresik has an annual output capacity of 19.25 million
\nmetric tons. Semen Padang has a capacity of 5.57 million tons
\nwhile Semen Tonasa has a capacity of 3.48 million tons.<\/p>\n
Asked why it took his company so long to stage such a meeting,
\nNoriega replied:\"It's not that we didn't try. We did, several
\ntimes in fact. But we've never been allowed to come to Padang to
\nexplain our intentions directly to the local community.\"<\/p>\n
He pointed to Semen Padang's board of directors, and even the
\nlocal authority, who refused to allow his company to come, citing
\nsecurity reasons.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cemex-seeks-local-support-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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