Semen Padang spin-off from Semen Gresik delayed

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)