Sat, 06 Apr 2002

PT Semen Padang reshuffle opposed

Kasparman, The Jakarta Post, Padang

The people of West Sumatra have reacted strongly to an instruction by State Minister of State Enterprise Laksamana Sukardi directing PT Semen Gresik to replace the boards of directors of PT Semen Padang and PT Semen Tonasa.

Members of a local social organization named West Sumatra Forum to Defend PT Semen Padang met at the provincial legislative council building on Friday to discuss the minister's letter of instruction to PT Semen Gresik instructing it to replace Semen Padang's board of directors.

The meeting, which lasted about two hours, was attended by the forum's secretary, Hasril Chaniago, North Sumatra's Muhammadiyah chairman Sofwan Karim Elha, PT Semen Padang's lawyer Tasman and all chairmen of factions and commissions of the legislative council.

Led by the council's deputy speaker, Titi Nazif Lubuk, the meeting participants agreed to pressure Laksamana to withdraw the instruction, which he issued on March 28.

Titi said the council would send a letter to the state minister to ask him to withdraw the instruction. Copies of the letter will also be sent to President Megawati and Vice President Hamzah Haz.

According to Titi, during the meeting the possibility of asking West Sumatra Governor Zainal Bakar to urge the minister to clarify his instruction was also discussed.

"It is because the governor is the holder of a mandate given by the West Sumatra people last November to take over Semen Padang," he said.

Following PT Semen Gresik's decision to sell 25 percent of its shares to Mexican cement producer Cemex SA last year, the certain members of the West Sumatra public urged the government to spin off Semen Padang from Semen Gresik as they opposed the entrance of the foreign company.

Semen Gresik owns 100 percent of the shares of PT Semen Padang and PT Semen Tonasa in Tonasa, South Sulawesi, where local people also opposed the divestment plan.

Titi warned that if Laksamana did not change his instruction then the legislative council would install a different board of directors.

"If Laksamana installs his own management, we will also install ours," she said.