Padang's new management gears up towards spin-off

The Jakarta Post, Padang/Jakarta

The new president director of West Sumatra-based cement maker Semen Padang reiterated on Tuesday his commitment to the spin-off of Padang from its parent company Semen Gresik, saying preparations for the spin-off were now in progress.

"All members of the spin-off team comprising officials from Semen Gresik, Semen Padang and Semen Tonasa, have resumed works to prepare the spin-off," he said as quoted by Antara in Padang, West Sumatra.

The statement came one day after Dwi and his management team managed to take over Padang's management after months of failed attempts. Dwi and his management team entered the office, guarded by hundreds of armed military and police personnel.

Dwi's management team was appointed by Gresik's shareholders in a meeting in May this year. Until recently, Padang's old management, backed by thousands of workers, blocked any efforts by the new management team to enter Padang's compound and take over the management.

One of the reasons behind the thorny dispute was a demand from Padang's old management and the workers union as well as West Sumatra's provincial administration that Semen Padang be spun off from Gresik.

After Monday's takeover, the West Sumatra provincial administration immediately urged them to go ahead with the spin- off program.

"The spin-off is West Sumatrans' aspiration, so there's no way the new management could hamper it," Yuen Karnova, the administration's spokesperson, was quoted by Antara as saying.

"If they do not realize the spin-off, they will have to face West Sumatra's people and administration."

Padang's shares are 99.99 percent owned by Gresik, which is 51 percent owned by the government, 23.46 percent by the public and 25.53 percent by Mexico's Cemex SA de CV, who became Gresik's shareholders in 1998.

Besides Padang, Gresik fully owns South Sulawesi-based Semen Tonasa, which reportedly has also demanded a spin-off.

The State Minister of State Enterprises Laksamana Sukardi has reportedly approved Padang's spin-off program.

As the follow-up on the minister's approval, Gresik, Padang and Tonasa have jointly formed the spin-off team, said Dwi.

However, due to the lengthy dispute between Padang's old management and Semen Gresik, the team could not complete its task properly.