Semen Indonesia to sell 49% stake in unit

Indonesia's largest cement producer, Semen Indonesia, plans to sell a 49 per cent stake in one of its units to help fund the company's future expansion, according to Investor Daily quoting the firm’s Finance Director, Darmawan Junaidi.

The strategic investor will hold the stake for a limited period, tentatively 10 years. However, which subsidiary's stake will be sold remains currently undisclosed. Semen Indonesia has four subsidiaries – PT Semen Gresik, PT Semen Padang, PT Semen Tonasa and Thang Long Cement Joint Stock Co.

Semen Indonesia is also considering the acquisition of 1-2 overseas firms this year. The company is looking to spend up to US$100m to acquire one or two foreign cement companies as it plans to expand overseas to boost revenues. In addition, it plans to buy a cement company in southeast Asia in 2017.

"We have pressure domestically. If we don't do something (overseas), our revenue will be flat or down,” Agung Wiharto,  the company's corporate secretary, told Reuters. "We have to have another revenue source. That is why we are thinking about taking some cement plants outside the country," he added, declining to say which countries the company was looking at.