Gresik shares suspended, Indonesia

Gresik shares suspended, Indonesia
Published: 29 June 2004

Shares in Indonesia’s largest cement company, Semen Gresik, were suspended yesterday after its auditors attached a disclaimer to its 2003 results, citing incomplete data from a rebel unit of the group as one of the reasons for the move.

Gresik’s central management in Jakarta regained control of the rebel unit, Semen Padang, more than nine months ago, but the group’s auditors, PwC, said it would need until September or October to complete a special audit of the West Sumatran subsidiary.

Gresik’s battle with Semen Padang grew out of efforts by Cemex, to buy Gresik, a struggle that has become a vivid example of the difficulties faced by foreign investors in Indonesia amid a dramatic slump in foreign direct investment in the country.