Makassar residents seek cement firm split

Jupriadi, The Jakarta Post, Makassar

Thousands of local people and employees of state-owned cement company PT Semen Tonasa staged a demonstration at the South Sulawesi provincial legislative council compound in the city on Tuesday, demanding the government to spin off the cement factory from parent PT Semen Gresik.

The demonstrators, who wore headbands bearing the words spin off and carried banners reading Spin off harga mati (Spin off is non-negotiable) and Jangan halangi aspirasi masyarakat Pangkep (Don't block the Pangkep people's aspirations), announced they would take over the cement factory by force if the government failed to meet their demands.

Mohammad Suhud M. said the provincial administration had to take a stand on the cement factory's fate, following the government's plan to sell a 51 percent stake in Semen Gresik to Mexican cement giant Cemex SA via a put option mechanism.

"The South Sulawesi government must oppose the planned put option because the local people can no longer endure the central government's prolonged slavery," he said in a free speech forum held by the demonstrators in the legislature building.

A circular distributed to demonstrators and legislators stated that the cement factory could be sold to foreign investors because it was the pride of South Sulawesi and one of several major state-owned companies in the country's eastern region.

It also said that the price of cement in the region would fall slightly if the government insisted on going through with the put option.

"That is, for us, why the spinoff is non-negotiable and why it will benefit local people," he said.

The cement factory is located some 30 kilometers north of the city.

Following the demonstration, the provincial legislative council held a plenary session to discuss the demonstrators' demands.

The demonstrators dispersed peacefully as hundreds of security personnel were deployed to step up security in the legislature compound.

The people in West Sumatra have also demanded a spin off for local cement factory PT Semen Padang, another unit of Semen Gresik, in protest against the government privatization program.