Indonesia`s Semen Gresik down

Indonesia`s Semen Gresik down
Published: 16 December 2003

State-owned cement company PT Semen Gresik was
lower following news the government plans to help Mexican Cemex SA find a
buyer for its 25.5 pct stake in Semen Gresik, dealers said. Semen Gresik has
been declining since Tuesday last week, mainly due to negative sentiment
arising from uncertainties relating to the dispute between Cemex and the
government over the sale of another 51 pct stake in the Indonesian cement
company to Cemex, dealers said.

According government spokesmen the cement industry still counted attractive
for investment but growth of physical development such as infrastructure
stands as the key factor.  The acquisition is likely to materialise next
year."We're working on it but still uncertain of the structure. Talks
between government and Cemex will later give shape to it," said a spokesman.

Cemex Asia is reportedly to have filed lawsuit against Indonesian government
for dispute in SG to International Centre for Settlement of Investment
Disputes (ICSID), Washington after failing to reach agreement in mediation
process.  Cemex demanded in the mediation for government to agree with its
raised three conditions, acquisition of government 51% share in SG, buyback
to 25% of SG share in Cemex possession by government, and a capital
injection to the company by Cemex to come later to get government share
diluted.

But Deputy for Mining, Telecommunication, and Strategic Industry of the
State Minister of State Enterprises Roes Aryawijaya once affirmed that only
Cemex first two offer worth considering. "We flatly refused Cemex demand
over capital injection as it would certainly sweep away our control in the
company," he said.