Govt delays Semen Gresik sale plan amid protest<\/p>\n
Berni K. Moestafa and Dadan Wijaksana, The Jakarta Post Jakarta<\/p>\n
The government decided on Thursday to postpone the sale of a
\n51 percent stake in PT Semen Gresik to Mexican firm Cemex SA de
\nCV, ignoring warnings that the move would dissipate whatever
\nlittle foreign investor confidence remained.<\/p>\n
\"We have delayed the put option as we want to evaluate the
\ntransaction,\" State Minister for State Enterprises Laksamana
\nSukardi told reporters.<\/p>\n
The decision could effectively annul a put option deal with
\nCemex under which Indonesia has the right to sell a 51 percent
\nstake in Semen Gresik for $520 million. The option expires today.<\/p>\n
Laksamana declined to say for how long the government would
\npostpone selling Semen Gresik.<\/p>\n
Secretary to the State Minister for State Enterprises Bacilius
\nRuru described the delay as a giving rise to a \"stand still
\nposition\".<\/p>\n
PT Cemex Indonesia president Francisco Noriega told reporters
\nafter meeting the government that \"nothing has changed.\"<\/p>\n
According to Ruru, Cemex showed understanding when the
\ngovernment told the firm of its decision.<\/p>\n
Cemex has been forced by the government to wait in limbo for
\nthree years ever since signing the put option deal in 1998.<\/p>\n
Experts have described the divestment of Semen Gresik as a
\ntest case by which foreign investors will be able to gauge the
\ngovernment's seriousness in pushing ahead with asset sales.<\/p>\n
The sale of Semen Gresik faces resistance from legislators who
\nhave fulminated against foreign control of the cement industry.<\/p>\n
Although many economists suspect politicking behind these
\nwarnings, the government has nevertheless fallen at the last
\nhurdle in respect of the exercise of its put option right.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-delays-semen-gresik-sale-plan-amid-protest-1447893297",
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"sponsor": "Okusi Associates",
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