Gresik to remain in govt control: Minister<\/p>\n
Urip Hudiono and Rendi A. Witoelar, The Jakarta Post, Jakarta<\/p>\n
The government has decided that it will retain its 51 percent
\ncontrolling stake in the country's largest cement producer PT
\nSemen Gresik (SG), a senior economic minister said.<\/p>\n
The decision to keep a majority stake in the company would be
\nthe government's main parameter for the seven final options it
\nhas prepared to amicably settle a protracted investment dispute
\nwith Mexican cement giant, Cemex SA, State Minister for State
\nEnterprises Sugiharto said.<\/p>\n
\"The most important thing to note here is that the government
\ndoes not want its control over Semen Gresik to be less than 51
\npercent,\" Sugiharto told reporters on Thursday, after a meeting
\nwith Coordinating Minister for the Economy Aburizal Bakrie and
\nMinister of Finance Yusuf Anwar.<\/p>\n
\"That is the parameter I have to protect,\" he firmly added.<\/p>\n
Sugiharto explained that this parameter would fulfill the
\nconsensus his office had reached with the House of
\nRepresentatives Commission VI on trade, industry and state
\nenterprises that the government must protect the country's vital
\ncement industry from the possibility of being controlled by a
\ncartel of foreign cement giants.<\/p>\n
The government currently controls a 51.01 percent stake in SG
\nand its Semen Padang and Semen Tonasa subsidiaries, whose cement
\nproduction capacity accounts for some 40 percent of the nation's
\ntotal production. Cemex holds a 25.53 percent stake in SG, while
\nthe investing public holds the remaining 23.46 percent stake.<\/p>\n
Concerns that Indonesia's cement industry would be controlled
\nby a foreign cartel comes as German cement firm Heidelberg is now
\nthe major shareholder of PT Indocement Tunggal Prakarsa, while
\nSwiss-based Holchim and French-based Lafarage, are the main
\nshareholders of PT Semen Cibinong and PT Semen Andalas
\nrespectively.<\/p>\n
The Cemex dispute itself came after Semen Padang's management
\nand West Sumatra politicians opposed plans to let Cemex increase
\nits shares in SG over similar concerns, despite the option being
\nstipulated in a deal Cemex had inked with the government in 1998,
\nwhen it first bought SG's shares.<\/p>\n
Cemex, therefore, decided to take the case to the
\nInternational Center for the Settlement of Investment Disputes,
\ndemanding that the government pay damages.<\/p>\n
Sugiharto further explained that the government will also use
\nthe parameter in narrowing down the 16 options it had previously
\nprepared for an out-of-court settlement for the Cemex case to
\nseven.<\/p>\n
\"After considering all the pluses and minuses of the 16
\noptions, we have now reduced it to seven final options,\" he said.<\/p>\n
Sugiharto however declined to elaborate what the options were,
\nas they were part of the government's strategy in resolving its
\ndispute with Cemex.<\/p>\n
Separately, advisor for the State Minister of State
\nEnterprises, Lin Che Wei, explained that all matters concerning
\nthe case would now be handled by the Coordinating Minister for
\nthe Economy, to avoid any further discrepancies.<\/p>\n
\"The final option itself is still to be decided on Saturday,\"
\nhe said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gresik-to-remain-in-govt-control-minister-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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