Indonesia appoints new negotiator

Indonesia appoints new negotiator
Published: 01 March 2004

The government has appointed a new negotiator, Brigitte Stern, in the arbitration proceedings with Mexico’s Cemex Asia Holding Ltd over the sale of state-owned cement firm PT Semen Gresik, Bisnis Indonesia reported.  "The government privatization team has agreed in a meeting to appoint Brigitte Stern as the new arbitrer," Bisnis quoted the State Enterprises Minister Secretary Bacelius Ruru as saying.  Stern replaces Nickolas Stone.  Ruru said the change follows a recommendation by Hong Kong-based law firm White & Case, Indonesia’s legal advisor in the Cemex arbitration.

Cemex has apparently also offered three options for out-of-court settlement - the buyout of the 25 per cent stake currently owned by Cemex; the acquisition by Cemex of the government’s stake; and Cemex injecting fresh capital into Semen Gresik to dilute government’s ownership.  Ruru said the government is continuing to seek a settlement of the case out of court.