Mexican standoff continues in Indonesia

Mexican standoff continues in Indonesia
Published: 16 May 2005

The Indonesian government remains at loggerheads with Mexico’s Cemex SA over the latter’s investment in state-owned cement maker PT Semen Gresik. Minister for State Enterprises Sugiharto said contrary to an earlier statement by Chief Economics Minister Aburizal Bakrie, nothing had been settled.  The government, however, still hoped to resolve the dispute before an international arbitration court resumes its session on the case filed by Cemex. The dispute began after the government failed to honor a contract under which Cemex, which already owns 25.5 per cent of Semen Gresik, had the right to acquire more shares in the country’s largest cement company.  Semen Gresik produced 16Mt of cement last year.