PT Semen Gresik officially changes name, Semen Kupang takeover recommended

PT Semen Gresik officially changes name, Semen Kupang takeover recommended

PT Semen Gresik has officially changed its name to PT Semen Indonesia and is being urged by the government to take majority ownership of state-owned cement producer Semen Kupang,

The company’s corporate name change to PT Semen Indonesia was officially marked during an inauguration ceremony in the presence of State-owned Enterprises Minister Dahlan Iskan and attended by PT Semen Indonesia vice president Dwi Soetjipto.

“We must become a regional champion. This company should become Indonesia’s pride abroad,” Dahlan said during his speech at the ceremony. The government owns a 51 per cent stake in PT Semen Indonesia.

The name change reflects the cement manufacturer's position as a holding company for state cement companies PT Semen Padang and PT Semen Tonasa.

Semen Kupang takeover urged

Meanwhile, the government is to ask PT Semen Indonesia to take ownership of the shares of PT Semen Kupang to improve the performance of the domestic industry.

Semen Kupang’s current shareholding consists of the state’s shares of 61.48 per cent, while Bank Mindiri holds 35.39 per cent and the government of East Nusa Tenggara 1.12 per cent.

Dahlan said he has asked Semen Indonesia to takeover possession of not only the government's stake in SOEs, but also the shares currently owned by PT Bank Mandiri Tbk. Majority state ownership was to be later transferred to Semen Indonesia.

"When fused, I am optimistic that the domestic cement industry will be stronger," he said.

Semen Kupang is the only cement producer in East Nusa Tenggara. ??In addition to meeting local needs, particularly the province of Nusa Tenggara Timur it also exports to East Timor and Darwin, Australia.