Solution to Semen Gresik sale problem expected soon: Minister
Solution to Semen Gresik sale problem expected soon: Minister
Tantri Yuliandini, The Jakarta Post, Jakarta
The government said on Wednesday that it would propose a new
resolution meant to appease the opponents of the sale of its 51
percent stake in Indonesia's largest cement maker PT Semen Gresik
to Mexico-based Cemex SA de CV by the end of the week.
"The solution will not discourage international investors and
will bring relief to Cemex," State Minister for State Enterprises
Laksamana Sukardi said.
The government had planned to sell its shares in Semen Gresik
to Cemex last month in a bid to raise around US$520 million,
which is about 80 percent of the government's 2001 privatization
proceeds target of Rp 6.5 trillion (about $622 million). Cemex,
the world's third largest cement company already owns 25 percent
of Semen Gresik.
However, the plan was thwarted by protests from local people
and legislators from the regions surrounding the PT Semen Padang
and PT Semen Tonasa factories, subsidiaries of Semen Gresik,
decrying a foreign takeover, and the Oct. 26 deadline for the put
option was extended until Dec. 14.
As a protest against the sale, the West Sumatra administration
had declared that starting from Nov. 1 Semen Padang was
temporarily under the control of the people of West Sumatra. The
declaration was later revoked by the administration.
Experts have described the divestment of Semen Gresik as a
test case by which foreign investors will be able to gauge the
government's seriousness in pushing ahead with asset sales.
Suggesting a peaceful resolution to the problem, noted
economist Emil Salim, earlier proposed to the government the
establishment of a new parent company for the three cement firms.
The company, dubbed PT Semen Indonesia, would act as a holding
company for distribution and marketing, and to be a center for
research and development for its three subsidiaries.
PT Bahana Securities, which conducted a study of the proposal,
said that the establishment of a new parent company would satisfy
the demands of people from West Sumatra and South Sulawesi to be
separated from Semen Gresik, and the government's plan to sell
its stake in Semen Gresik could also be realized.
The plan was supported by the three companies' president
commissioners in a letter dated Nov. 23 to the state minister for
state enterprises.
However, Semen Gresik president Urip Timuryono dismissed the
commissioners' statement, saying that the management had not
received any formal notification of the plan.
"There are no activities at the moment which will lead to that
(the establishment of a new holding company," he said on the
sidelines of the company's special shareholders' meeting here.
As of Sept. 30, consolidated profits from the three companies
was recorded at Rp 365.87 billion, an increase of 130 percent
compared to the same period last year.
Semen Gresik recorded a profit of Rp 363.4 billion, Semen
Tonasa Rp 40.1 billion, while Semen Padang recorded a loss of Rp
32.6 billion.