Government considers Cemex ownership in Semen Gresik<\/p>\n
JAKARTA (JP): The government is considering raising the
\nownership of Mexican-based cement producer PT Cemex Indonesia in
\nstate-owned Semen Gresik Group (SGG), as part of a compensation
\nscheme for spinning off SGG's subsidiary PT Semen Padang,
\naccording to a senior government official on Monday.<\/p>\n
\"One of our ideas is to raise Cemex's stake in Gresik,\" Nyoman
\nTjager told reporters following a post-Idul Fitri gathering.<\/p>\n
He said that Cemex must be compensated for relinquishing Semen
\nPadang, but he declined to reveal any details on the compensation
\nschemes currently under consideration.<\/p>\n
\"We will have a decision on a compensation scheme quite soon,\"
\nNyoman said.<\/p>\n
He said he had yet to present the proposed scheme to the
\nrelated ministers who would decide on the divestment of Semen
\nPadang.<\/p>\n
The government is mulling spinning off Semen Padang from its
\nparent company, partly due to local sentiment of the Padang
\npeople against Cemex's ownership in the company.<\/p>\n
In 1998, Cemex paid the government US$114.2 million for a 25
\npercent stake in SGG, a holding company comprising of PT Semen
\nGresik, Semen Padang and PT Semen Tonasa.<\/p>\n
Cemex plans to become a majority owner in SGG and, according
\nto the company, the 1998 agreement with the government included a
\ngradual rise in Cemex's stake in SGG.<\/p>\n
But because of local resentment against foreign control in
\nSemen Padang, the government never divested more of its stake to
\nCemex.<\/p>\n
Spinning off Semen Padang from SGG would pave the way for
\nCemex to become a majority shareholder in SGG.<\/p>\n
Finance Minister Prijadi Praptosuhardo confirmed plans to
\ndivest Semen Padang from SGG.<\/p>\n
\"We want to spin off Semen Padang, but we don't know how,\" he
\ntold reporters.<\/p>\n
SGG, a publicly listed company on the Jakarta Stock Exchange
\nhas a combined annual production capacity of 18.2 million metric
\ntons of cement.<\/p>\n
The group was formed in 1995 by the government, in an effort
\nto prevent private cement producers from controlling the domestic
\nmarket.<\/p>\n
Semen Gresik paid Semen Padang and Semen Tonasa a total of Rp
\n1.06 trillion for their stakes.<\/p>\n
Head of the Capital Market Supervisory Agency (Bapepam)
\nHerwidayatmo said that the government must also pay compensation
\nto SGG for spinning off Semen Padang.<\/p>\n
\"There will be no problem if all compensation payments are
\nclear. By releasing Semen Padang there must be compensation to
\nthe current shareholders of Semen Gresik,\" he explained.<\/p>\n
Meanwhile, Semen Gresik said it expected output to rise by 10
\npercent in 2001, President Director Urip Timuryono was quoted as
\nsaying by the Dow Jones news agency.<\/p>\n
\"Total production volume this year will be 10 percent higher
\nthan last year because the market is getting better,\" Urip said.<\/p>\n
He didn't offer figures, but the latest data from the
\nIndonesian Cement Association shows that Semen Gresik's cement
\nsales reached 11.8 million metric tons during the first 10 months
\nof 2000, up from 10.6 million tons during the same period in
\n1999.<\/p>\n
Urip also said he expected Semen Gresik's 2000 net profit to
\nbe higher in 2000 than in 1999, but didn't offer further details.
\nSemen Gresik's full year results have not been announced, but the
\ncompany posted a net profit of Rp 301.83 billion in the first
\nnine months of 2000.<\/p>\n
The nine month profit -- up from Rp 104.03 billion for the
\nsame period in the previous year -- was due largely to a rise in
\nnet sales to Rp 2.719 trillion from Rp 2.315 trillion. (bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-considers-cemex-ownership-in-semen-gresik-1447893297",
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