Govt to set up team to study Semen Gresik separation<\/p>\n
JAKARTA (JP): Newly appointed State Minister of State
\nEnterprises Laksamana Sukardi said on Friday that he would
\nestablish a special team to examine the controversial demand for
\nthe separation of cement company PT Semen Padang from parent PT
\nSemen Gresik.<\/p>\n
He said that the issue had been ongoing for some time without
\nany resolution.<\/p>\n
"For eighteen months now the separation issue has been on
\nhold," Laksamana said, after the swearing-in ceremony of
\nPresident Megawati's new Cabinet at Merdeka Palace.<\/p>\n
He added that it was high time a decision was made.<\/p>\n
Laksamana did not explain the structure of the team, but that
\nit should also listen to the aspirations of local people as well
\nas from the international community before making a decision.<\/p>\n
The government had planned to separate Semen Padang from
\nSemen Gresik, following demands from the local community near
\nSemen Padang in West Sumatra, due to concerns over foreign
\nownership in Semen Gresik.<\/p>\n
Semen Gresik is 25.53 percent owned by the Mexican-based
\ncement maker Cemex SA de CV, which has long expressed a desire to
\nincrease its stake in the company.<\/p>\n
The separation issue has put the government in a difficult
\nposition as it does not have enough money to sufficiently
\ncompensate Cemex if the demand of the Padang people is to be
\nfulfilled. On the other hand a failure to come up with an
\namicable solution would further damage investors' confidence in
\nthe ailing economy.<\/p>\n
Meanwhile, the high profile Semen Padang case has also
\nprompted the people of Makassar in South Sulawesi to demand the
\nseparation of PT Semen Tonasa from Semen Gresik.<\/p>\n
Semen Padang and Semen Tonasa were joined with East Java's
\nSemen Gresik in 1995 to increase production capacity, operating
\nefficiency, and expand market share.<\/p>\n
In 1998 the government started privatizing the group by
\nselling 14 percent of the group's shares to Cemex, the world's
\nthird largest cement producer.<\/p>\n
The government holds 51.01 percent of the shares in Semen
\nGresik, and the remaining 23.46 percent are held by the public.<\/p>\n
Separately, Laksamana said that Indonesia's telecommunications
\nsector was the most attractive government asset to be sold to
\nforeign investors.<\/p>\n
"I think demand in the telecommunications sector is huge," he
\nsaid, adding that the privatization of the two state-owned
\ntelecommunications companies -- PT Telkom and PT Indosat -- was
\ncrucial to boost their competitiveness in the future.<\/p>\n
"It is better for us to tie up with foreign companies or
\notherwise they will be destroyed," Laksamana added.<\/p>\n
If government ownership is reduced, state companies will
\nbecome more transparent and effective and could better contribute
\nto government revenue, he said.<\/p>\n
The government owns 66.19 percent of Telkom and 65 percent of
\nIndosat and is planning to divest between 10 to 14 percent this
\nyear.(tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-set-up-team-to-study-semen-gresik-separation-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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