Government told to proceed with Cemex deal
Government told to proceed with Cemex deal
Berni K Moestafa, The Jakarta Post, Jakarta
The government should proceed with its put option deal for the
sale of state-owned cement producer PT Semen Gresik to Mexico-
based Cemex SA de CV, without waiting for the House of
Representatives to lend its approval, a senior legislator said on
Wednesday.
Chairman of the House of Representatives' Commission IX for
financial affairs Benny Pasaribu said the government should not
let itself be distracted by legislators opposing the sale.
"Why should it (the government) need to refer the matter to
the House?" Benny told reporters before attending a meeting
between the finance ministry officials and the House budget
commission.
He said that only if the government asked for input from
legislators would his commission review the Cemex put option
deal.
"Let the government as the executive decide. We can still
discuss this (put option deal) anytime they want," he said.
The government has been wavering over the sale of Semen Gresik
for fear it would anger locals in the provinces of Padang and
Tonasa.
Locals in both areas have rejected foreign control of two
Semen Gresik units, PT Semen Padang and PT Semen Tonasa.
But with a put option right, the government is entitled to
receive US$520 million for a 51 percent stake in Semen Gresik.
The proceeds would raise much needed cash to meet the
government's privatization target.
Yet on top of opposition from the regions, Cemex may also
retreat from a deal given that its deadline is Oct 26.
The government's bid to extend the put option deal has yet to
receive any response from Cemex, according to the company.
Legislators have also raised nationalist sentiment against
Cemex, warning of foreign dominance of the local cement industry.
Benny brushed aside such criticisms, saying they were
individual opinions and did not reflect the House's stance.
State Minister for State Enterprises Laksamana Sukardi has
said that by law the government need not seek the House's
approval regarding state asset sales.
Both Benny and Laksamana are members of the Indonesian
Democratic Party of Struggle (PDI-P).