Cemex to suspend arbitration proceedings

Cemex to suspend arbitration proceedings
Published: 10 January 2005

Mexico’s Cemex SA has agreed to suspend international arbitration proceedings against the Indonesian government over a dispute for control of Indonesia’s largest cement maker PT Semen Gresik, Bisnis Indonesia reported, citing State Enterprises Minister Sugiharto.  He said Cemex will not go ahead with the next international arbitration hearing scheduled for January 11 as ’there has been great progress’ in talks for settlement of the dispute.  The government said it has short-listed six options out of a total of 16 to settle the dispute out of court, but did not disclose them.   Local news source Bisnis (citing an unnamed source) noted that one remaining option that would not risk the government’s 51 pct stake in Semen Gresik is to offer Semen Gresik’s cement plant -- Tuban I, II and III -- to Cemex.   ’The government can later use the proceeds from the sale to build new plants,’ the source said.