Semen Indonesia may have to postpone expansion into Myanmar until next year due to prolonged negotiations with its local partner, a company executive told the Jakarta Post.
Finance director Ahyanizzam said that despite a suitable partner having been found, discussions regarding the ownership of the joint venture have not proceeded as expected. "We initially planned to enter Myanmar to become a major shareholder in a joint venture and acquire a company. We've found a suitable partner but negotiations did not turn out well because the other party wants a major ownership, too," Ahyanizzam said.
He added that Semen Indonesia proposed to have at least a 20 per cent stake in the joint venture as well as the rights to be the operator and the distributor of the products. "Even on those terms [becoming operator and distributor], we have yet to agree with one another, so we will evidently have to redesign the plan."
Semen Indonesia had planned to conclude the agreement by the end of this year. Ahyanizzam further stated that: "If things go well, we can start the project by next year".