W. Sumatra renews demand for Semen Padang spin-off

Syofiardi Bachyul, Padang

Dozens of local public leaders and senior politicians have renewed their pressure on the central government to spin off West Sumatra-based cement maker PT Semen Padang from its parent company PT Semen Gresik.

They issued a petition signed by a group of prominent local leaders during a rally at the West Sumatra governor's office on Saturday.

The rally, organized by the province's Indonesian Youth National Committee (KNPI), involved more than 200 protesters.

The petition's signatories included former West Sumatra police chief Insp. Gen. Dasrul Lamsudin, the owner of Singgalang daily Basril Djabbar, economist Revrisond Baswir and local tribal leader Kamardi Rais Datuk P. Simulie.

Other signatories were West Sumatra legislative speaker Arwan Kasri and his deputy Titi Nazif Lubuk, Pasaman Regent Baharuddin R., who also chairs the provincial chapter of the United Development Party (PPP), as well as local leader of the Prosperous Justice Party (PKS) Mahyeldi Ansharullah.

Other senior politicians who signed the statement were West Sumatra leaders of the Crescent Star Party (PBB), the National Mandate Party (PAN), the New Indonesia Alliance Party (PIB) and the PKPI.

Leaders of youth and student organizations, including the KNPI, the Muhammadiyah Youth Association, the Kaabah Youth Movement and the Hizbullah Brigade also expressed support for the petition.

However, West Sumatra Governor Zainal Bakar refused to join the signatories, although he was given a similar petition on Oct. 31, which he did sign and promised to carry it through to pursue the demanded spin-off of Semen Padang from Semen Gresik.

The protesters therefore demanded that the authority to facilitate the spin-off be revoked from the governor.

Zainal's deputy, Fachri Ahmad, argued that the governor is the representative of the central government.

"Our task is only to channel the people's aspirations, not to sign it. It would be odd for us to do so. Should the mandate be lifted, it's no problem because with or without it we will continue to work to satisfy the public's aspirations," he said.

The demonstrators also demanded that the central government halt the sale process of all state assets, including Semen Padang, to foreign investors.

They instead backed the demand by the Minang Maimbau Foundation for the cancellation of Semen Padang's acquisition by Semen Gresik in 1995.

Last September, the new president director of Semen Padang Dwi Sutjipto, reiterated his commitment to the spin-off of his company from Semen Gresik, saying preparations for the spin-off were now in progress.

But it was unclear whether the preparations were completed or not.

The statement came one day after Dwi and his management team managed to take over Semen Padang's management on Sept. 10, 2003 after months of failed attempts. Dwi and his management team entered the office, guarded by hundreds of armed military and police personnel.

Dwi was appointed by Gresik's shareholders in a meeting in May last year.

One of the reasons behind the thorny dispute was a demand from Semen Padang's old management and the company's workers union as well as the West Sumatra provincial administration that Semen Padang be spun off from Gresik.

Semen Padang's shares are 99.99 percent controlled by Gresik, which is itself 51 percent owned by the government, 23.46 percent by the public and 25.53 percent by Mexico's Cemex SA de CV, who became Gresik shareholders in 1998.

Besides Semen Padang, Semen Gresik fully owns South Sulawesi- based Semen Tonasa, which reportedly has also demanded a spin- off.