Thu, 10 Apr 2003

Semen Padang responds

With reference to the news story under the title Semen Padang causing problems for PT Semen Gresik, published on page 13 of The Jakarta Post of April 7, 2003, we would like to explain the following:

* The conclusion, that the financial statement of PT Semen Padang was not issued punctually and correctly due to the Oracle software is not true. We have teamed up with and obtained assistance from Oracle Indonesia for the completion of the drawing up of our financial statement.

* The problem lay not with the Oracle Software itself but in the use of Oracle software at PT Semen Padang, with regard to the setting up, business process adjustment and knowledge about this new system.

* We are always striving to improve business processes at PT Semen Padang and, in keeping with our needs, have chosen the Oracle E-Business Suite to support the financial system of PT Semen Padang.

DESRI AYUNDA, Corporate Secretary, PT Semen Padang, West Sumatra