Semen Gresik privatization delayed<\/p>\n
The Jakarta Post, Jakarta\/Surabaya<\/p>\n
State Minister of State Enterprises Laksamana Sukardi said on
\nMonday that the government was unlikely to complete the sale of
\nthe state-owned cement maker PT Semen Gresik to Mexico's Cemex SA
\nde CV as planned amid continuing protests from various quarters.<\/p>\n
\"I think we cannot say anything for sure at the moment.
\nLooking at the present conditions, it would be very hard to
\nexecute it (this year),\" Laksamana told reporters.<\/p>\n
Separately, Surya Dharma Ali, chairman of the House of
\nRepresentatives Commission V on trade and industry, said that in
\nan effort to cool things down, the privatization program would be
\ndelayed.<\/p>\n
\"There has been an agreement between the House and government
\nthat there won't be any decision on Semen Gresik until after
\nJanuary.\"<\/p>\n
The government had planned to complete the sale of a 51
\npercent stake in the publicly listed Semen Gresik to the Mexican
\ncement company before the end of this year to raise badly needed
\ncash to help finance the 2001 state budget deficit.<\/p>\n
The privatization program not only directly affects government
\nfinances, but is seen as a crucial measure to help revive
\ninvestor sentiment in the ailing economy.<\/p>\n
Meanwhile, shares in Semen Gresik dropped on Monday by 9.2
\npercent to Rp 5,450 each, a level not seen since June, due to the
\ndelay in the planned sale.<\/p>\n
Laksamana was referring to the widespread street protests in
\nlocal provinces opposed to the deal, which will allow foreign
\ncontrol of the publicly listed company and its subsidiaries PT
\nSemen Padang and PT Semen Tonasa.<\/p>\n
On Monday, around 3,000 employees of Semen Gresik staged a
\nrally at the East Java Provincial Legislative Council in Surabaya
\nasking the government not to sell its majority stake to a foreign
\ninvestor. A similar protest had occurred last week in a separate
\ntown in the province.<\/p>\n
Responding to the protest, a local legislator from the Golkar
\nparty, Edy Wahyudi, noted that the protesters' demands were
\nrational and he would pass on their requests to the central
\nadministration.<\/p>\n
Similar protests led by some local politicians and local
\ncommunity leaders have also been staged in West Sumatra and North
\nSulawesi, the site of Semen Padang and Semen Tonasa respectively.<\/p>\n
The delay in the deal shows the extent to which political
\ninfighting has hampered attempts to raise revenue as well as to
\nregain investor' confidence.<\/p>\n
Laksamana said that the failure to wrap up the deal as
\npreviously scheduled meant that this year's revenue target from
\nprivatization proceeds could not be met.<\/p>\n
The government is set to finish the year with a total earnings
\nfrom the sale of state-owned assets amounting to Rp 3.5 trillion,
\nor Rp 3 trillion short of the projected Rp 6.5 trillion.<\/p>\n
The earnings came from the sale of 11.9 percent shares in
\nstate-owned telecommunications company PT Telkom last week and 40
\npercent shares in plantation firm Socfindo, the proceeds of which
\ncontributed Rp 3.12 trillion and Rp 400 billion respectively to
\ngovernment coffers.<\/p>\n
Elsewhere, Laksamana said the government would continue to
\nhold negotiations with Cemex, Semen Gresik, and its two units so
\nas to keep the new scheme alive.<\/p>\n
He said that the government had invited all concerned parties,
\nincluding the local legislature, governors of Central Sumatra and
\nNorth Sulawesi as well as Cemex to meet to help facilitate the
\nsale.<\/p>\n
Laksamana earlier said that the government would have to seek
\nother buyers if Cemex backed out from the Semen Gresik purchase
\nplan.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/semen-gresik-privatization-delayed-1447893297",
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