Indonesian Gresik Likely to Pay Holding Tax

Indonesian Gresik Likely to Pay Holding Tax
Published: 26 June 2007

PT Semen Gresik  has suggested it would pay holding tax of IDR500bn due to the asset transfer dealing with the establishment of cement holding company.  
The company has planned to transfer the asset to the new company that will be established soon, while  Semen Gresik will become holding company for PT  Semen Tonasa, PT  Semen Padang, and another new unit.  
The company planned to run assessment process before transferring the asset, and following the asset transfer  Semen Gresik would become new holding company.  
The Vice President Commissioner of Semen Gresik Darjoto Setyawan said the company will arrange interim audit mid this year to determine the tax the company would have to pay.  
"Tax payment is the logic consequence in the establishment of holding company. We will write it in our letter of disclosure," he said yesterday.  
He said that after becoming holding company,  Semen Gresik will still become public company.  A.T. Kearney has been the consultant for the establishment of such holding company, and  JP Morgan has become the restructuring consultant.  
The establishment of holding company is just like the listing of holding company of  PT Indosiar Visual Mandiri (IVM),  PT Indosiar Karya Media Tbk (IKM), three years ago. But Indosiar has chosen the different scheme than that taken by  Semen Gresik. IVM has become closed-company and the public stocks have been exchanged with the stock of IKM.  
Semen Gresik will seek approval from the shareholders on their September meeting.  
The Deputy SOE Minister on Mining, Strategic Industry, Energy and Telecommunication, Roes Aryawidjaja, suggested that the ministry would approve the plan. "The plan will be discussed in AGM."  
Darjoto suggested the company would pay the dividend of 50%. "The management has proposed 40%, but the controlling shareholders have asked 50%."  
The stock price of  Semen Gresik closed at IDR46,500 an increase from IDR46,000 last week.  
The research of PT Sucorinvest Central Gani released on June 14 said that next year’s sales revenue of  Semen Gresik would reach IDR11.6 trillion, an increase of 21% from this year’s projection of IDR9.6 trillion. The lower interest rate would positively affected the company.  
The company’s net profit would increase substantially next year to IDR1.7 trillion next year, from the estimation of IDR1.43 trillion this year.