Govt to decide on Cemex case today<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government will decide on Thursday to propose an option to
\nMexico's cement giant Cemex SA in a bid to seek an out of court
\nsettlement over a long-standing investment dispute, according to
\na minister.<\/p>\n
"There are 16 options. We will select one tomorrow,"
\nCoordinating Minister for the Economy Aburizal Bakrie told
\nreporters on Wednesday. He declined to give details.<\/p>\n
The selected option would be used to negotiate with Cemex, he
\nsaid.<\/p>\n
The government is under pressure to resolve its investment
\ndispute with Cemex, not only because the government may risk
\npaying huge financial penalties if an international arbitration
\ncourt ruled in favor of the foreign cement giant, but also
\nbecause a quick resolution to the high profile case would help
\nrevive investor confidence in the country.<\/p>\n
Cemex has launched a law suit against the government for
\nfailing to execute a 1998 investment deal, under which the
\ncompany was entitled to eventually become a majority shareholder
\nin Indonesia's largest cement firm PT Semen Gresik after
\nacquiring a stake of more than 25 percent in the East Java-based
\ncompany six years ago.<\/p>\n
The previous government has failed to resolve the case during
\nthe past couple of years partly due to strong opposition from
\npeople in West Sumatra, the home base of a subsidiary of Gresik,
\nfor Cemex to become the majority owner of the state-owned firm.<\/p>\n
But State Minister of State Enterprises Sugiharto said
\nearlier that the new government aimed to settle the dispute in 42
\ndays.<\/p>\n
According to sources at the ministry, some of the policy
\noptions being considered by the government include an option for
\nthe government to buy back Cemex's ownership in the publicly
\nlisted Semen Gresik, spinning off the company's units before
\nallowing Cemex to control Gresik, and an option to allow Cemex to
\nset up new cement factories if it agrees to sell back its shares
\nin Gresik to the government.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-decide-on-cemex-case-today-1447893297",
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"sponsor": "Okusi Associates",
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