W. Sumatra renews demand for Semen Padang spin-off

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.