{
    "success": true,
    "data": {
        "id": 1402321,
        "msgid": "govt-bows-to-pressure-on-gresik-privatization-1447893297",
        "date": "1998-08-21 00:00:00",
        "title": "Govt bows to pressure on Gresik privatization",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Govt bows to pressure on Gresik privatization JAKARTA (JP): The government, caving in to the public outcry which greeted an earlier plan, will divest just 14 percent of its 65 percent stake in publicly listed PT Semen Gresik, a minister said yesterday. Coordinating Minister for Development Supervision and State Administrative Reforms Hartarto Sastrosoenarto said the modified privatization scheme would retain government control of 51 percent in the country's largest cement maker.",
        "content": "<p>Govt bows to pressure on Gresik privatization<\/p>\n<p>JAKARTA (JP): The government, caving in to the public outcry<br>\nwhich greeted an earlier plan, will divest just 14 percent of its<br>\n65 percent stake in publicly listed PT Semen Gresik, a minister<br>\nsaid yesterday.<\/p>\n<p>Coordinating Minister for Development Supervision and State<br>\nAdministrative Reforms Hartarto Sastrosoenarto said the modified<br>\nprivatization scheme would retain government control of 51<br>\npercent in the country's largest cement maker.<\/p>\n<p>\"The new formula is being discussed with the prospective<br>\nforeign strategic partners,\" he told media representatives<br>\noutside his office.<\/p>\n<p>The State Minister of the Empowerment of State Enterprises<br>\nTanri Abeng could not be reached for comment.<\/p>\n<p>Mexico's Cemex SA de CV won the first bid for 35 percent of<br>\nSemen Gresik last month by offering US$287 million.<\/p>\n<p>Germany's Heilderberger Zement AG, Switzerland's Holderbank,<br>\nand France's Laferge Asia Pacific planned to top Cemex's offer<br>\nthrough a second bidding process, which was initially scheduled<br>\nfor Aug. 19.<\/p>\n<p>But Tanri's deputy Sofyan Djalil announced Tuesday that<br>\nbidding would only resume after a new privatization formula had<br>\nbeen agreed with the prospective investors.<\/p>\n<p>The postponement followed objections from West Sumatrans --<br>\nowners by traditional law of the land where a Semen Gresik plant<br>\nis located -- against the plan allowing the winning strategic<br>\npartner to hold a majority control.<\/p>\n<p>Under the former plan, the winning bidder would have been<br>\nallowed to purchase another 16 percent stake in the cement<br>\ncompany through a tender offer mechanism on the local stock<br>\nexchange.<\/p>\n<p>West Sumatrans staged a demonstration against the plan because<br>\nit would allow foreigners to control PT Semen Padang, a wholly<br>\nowned subsidiary of Semen Gresik.<\/p>\n<p>Semen Gresik is one of the 12 state-owned companies prepared<br>\nfor privatization this fiscal year to raise a total of $1.5<br>\nbillion to help the current budget in financing the various<br>\nsubsidy commitments which amount to 8.5 percent of gross domestic<br>\nproduct. (rei)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/govt-bows-to-pressure-on-gresik-privatization-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}