Government urges Semen Gresik to build new plant

The Indonesian Government is urging the management of PT Semen Gresik Tbk to develop new cement plant as an option to conclude the dispute with Cemex Asia.   "Everyone can develop cement processing plant. But we urge Semen Gresik to develop new cement plant so that it will be able to supply the demand of 2007. But for the clearer information, please ask directly to State Minister of State Owned Enterprise Sugiharto," Industry Minister Andung A. Nitimihardja told Bisnis Indonesia after the press conference on tariff harmonization at the ministry of finance office in Jakarta yesterday.  

Andung was among the three ministers presented at Saturday meeting to decide six options the government decided to deal with the dispute on Semen Gresik with Cemex Asia.    But Andung said that he could not explain further about it as it was the Minister of State Owned Company who had the authority to explain the options to the public.   Sugiharto admitted that the development of new facility was one among the six option offered to Cemex to settle the dispute out of court.  

Last Saturday Sugiharto said that in 2007 Indonesia would face some cement scarcity as the government had decided to accelerate the development of infrastructure. He said that if the domestic cement producers did not expand their cement processing plant, there will be some scarcity of the product, and the price of cement would increase accordingly.    The government would start negotiating with Cement this week and hoped to conclude the negotiation before the end of the year.