Semen Padang causing problems for PT Semen Gresik
Semen Padang causing problems for PT Semen Gresik
The Jakarta Post, Jakarta
PT Semen Padang's failure to file an audited financial report
for 2002 is causing problems for its holding company, publicly
listed PT Semen Gresik, which as a result of the failure was
unable to issue a consolidated financial statement by the March
31 deadline set by the Jakarta Stock Exchange (JSX).
Semen Gresik, which owns 99.99 percent of Semen Padang, must
now pay Rp 1 million in fines for each day of the delay until
independent auditors Hans Tuanakotta & Mustofa complete an audit
of Semen Padang in West Sumatra.
Sources at Semen Gresik said they remained in the dark as to
when Semen Padang would be able to submit its audited financial
report for 2002, but they acknowledged that the delay was causing
severe damage to its corporate image.
There has been conflicting information about why Semen Padang
has not yet filed an audited financial statement.
Semen Padang corporate secretary Desri Ayunda said the delay
was caused by technical problems in the introduction of its new
data processing system, Oracle.
But sources at Semen Gresik in Surabaya alleged the problem
was related to the failure of the Semen Padang management to
account for Rp 50 billion (US$5.5 million) in spending in 2002.
Ayunda insisted, however, that the company could not yet close
its books for 2002 simply because of start-up problems in the
application of its Oracle data processing system.
Despite the technical problems in the data processing system,
Ayunda nevertheless disclosed to several newspapers in Padang and
Jakarta as early as January that Semen Padang's performance had
improved significantly last year, with a pretax profit of Rp
145.4 billion, up almost 184 percent from Rp 51.2 billion in
2001.
Analysts in Jakarta who monitor cement stocks asked how Ayunda
was able to disclose Semen Padang's financial performance as
early as January, while the company still had not completed its
2002 audited financial report by the end of March.
Sources at JSX said the management of Semen Gresik had been
called on to explain the delay.
The shareholders of Semen Gresik, the country's largest cement
manufacturer with a total capacity of 17.25 million metric tons,
have tried, without success, since early last year to replace
Semen Padang's management over what they consider to be its
dismal performance.
Semen Padang's 2001 annual report showed that the company,
with an annual capacity of 5.5 million metric tons, was the worst
performing of Semen Gresik's three cement units.
The other two cement units are Semen Gresik, located near
Surabaya, which has an annual capacity of 8.2 million tons, and
Semen Tonasa in South Sulawesi, with an annual capacity of 3.48
million tons.
Semen Padang directors have clung to their positions,
staunchly opposing efforts to replace them through an
extraordinary shareholders meeting.
The directors' defiance compelled Semen Gresik early last June
to ask for an injunction from the district court in Padang to
force the Semen Padang management to convene an extraordinary
shareholders meeting.
However, Roeslan Dahlan, chief of the court, rejected Semen
Gresik's petition in mid-June, stating that there was no valid
reason to replace the management before its term ended in 2005.
Semen Gresik, which is 51 percent owned by the state, 23.46
percent by the public and 25.54 percent by Cemex Asia Holdings
Ltd. of Mexico, is now awaiting a ruling on the petition by the
Supreme Court.