Semen Padang spin-off from Semen Gresik delayed

JAKARTA (JP): West Sumatra community figures accused the government and PT Semen Gresik of colluding to cancel the establishment of a spin-off company, PT Semen Padang, a company widely anticipated by locals to provide an economic boost to the province.

A 40-member delegation from West Sumatra expressed disappointment with the result of official talks between the government, Semen Gresik and Cemex Indonesia on March 28, which were held in anticipation of the spin-off process.

"We are very disappointed with the Coordinating Minister for the Economy Rizal Ramli and Nyoman Tjager, director general for state-owned enterprises, who did not even attend the meetings," said the chairman of the delegation, P. Simulie, in a meeting with House Speaker Akbar Tandjung here on Monday.

He said Cemex, which holds shares in Semen Gresik, declined to discuss the issue due to the absence of senior government officials in the meeting.

They claimed that the planned spin-off of Semen Padang from Semen Gresik is a transformation intended to enable the state- owned company to contribute more to the provincial administration's income, since Semen Gresik was established on a plot of land which traditionally belonged to locals.

"We want Semen Padang to be a fund-raiser, not for troubled Semen Gresik, but for development programs in West Sumatra," Simulie said.

Afrizal, a member of the West Sumatra provincial legislative council, pointed out that both former president B.J. Habibie and President Abdurrahman Wahid, who had recently visited the provincial capital of Padang, had expressed their support for the idea.

He said it was better for the government to process the separation of the company's management from Semen Gresik to avoid new problems in the province.

Akbar pledged to meet with the President and Rizal immediately to discuss the matter. (rms)