Semen Gresik’s trade union Urges EGM to Develop New Facility

Semen Gresik’s trade union Urges EGM to Develop New Facility
Published: 25 September 2006

The trade union of PT Semen Gresik Tbk (SPSG) proposed that the development of new cement plant facility should still be the agenda of the September 28 extraordinary general meeting (EGM) of shareholders.  
 
The trade union, with 2,200 members, also stressed that the shareholders agreement of the government with Rajawali Group should not be contrary to the regulations on limited liability company, on investment, and on state owned enterprise (SOE).  
 
The Chairman of SPSG Zubeir Halim said that the voting right aspect that will be included in the company’s statute should be proportional with the ownership. 
 
He said that the controlling shareholder, the government, should not be beaten by the minority share holder, Rajawali Group.  
 
"We don’t want that the terms in the conditional sales purchase agreement [CSPA] between the government and Cemex SA will be included in the company’s statute," he said after the meeting of SPSG last week.  
 
The meeting also urged the EGM on September 28 should still put the agenda on new cement plant development.  
 
Because, the feasibility study on the new power plant development has just finished and concluded that it will be profitable in the long run amid the growing domestic market of cement.  
 
"To finance the new facility, the issuance of new shares is not necessary. Instead, getting some loan will be better," said Zubeir, who is also the president director of PT Kawasan Industri Gresik (KIG), a unit of PT SG.  
 
The meeting of SPSG also decided that the shareholders should maintain the favorable relationship among commissioners, directors and the workers of PT SA to achieve the company’s target.  
 
Bisnis Indonesia has been observing that there has been a plan to establish another trade union of Semen Gresik.  
 
The new trade union has been pioneered by Zainuddin As’ad, the division head of Assets Management of SG, to protest to the leadership of Zubeir.  
 
Zubeir should be the chairman of SPSG until 2008, but he will be pensioned next year. 
 
Zubeir said that he will not ban the new trade union as it is not against the regulation. But he said that with more than one trade union, there could be some unfavorable frictions in the company.  
 
"Please establish new trade union to go with the minority shareholders. We will still go with the aspiration of the majority shareholder."  
 
Zubeir has claimed to have bridged the aspiration of Rajawali Group with the Ministry of SOE.  
 
Profit target  
 
On the development of new facility, the president director of Semen Gresik Dwi Sutjipto Dwi said that he will wait for the September 28 EGM.  
 
He said the management has reviewed the allocation of the capital to develop the new facility so that it will not weigh the company.  
 
"We are still calculating it, but it should be not far with the initial projection. We are still learning about the investment sources, by considering the inputs from the new shareholders," he said.