Makassar residents seek cement firm split

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.