Indonesia plans to sign Memorandum of Understanding with Cemex tomorrow to settle Semen Gresik dispute over a failed put option deal for the sale of a majority stake in state cement firm Semen Gresik to Cemex, State Enterprises Minister Sugiharto said.
"Tomorrow, we will sign an MoU with Cemex. The core of the MoU is to underline that in accordance with our consultation with parliament, the government will retain 51 per cent stake in Semen Gresik," Sugiharto told reporters on the sidelines of a seminar.
The government wants Cemex to build new capacity to meet Indonesia’s growing demand for cement, he said, adding that a new unit will be set up under Semen Gresik to run the new plants, pending the outcome of a feasibility study. "How big the size of Semen Gresik’s stake in the unit will depend on Semen Gresik, not the government," he said.
Such an option to build new capacity is seen as a win-win solution for both parties, he said, adding that it may cost around US$125-150/t to build a new cement plant.