A team from state-run cement company PT Semen Gresik Tbk decided to spin-off two subsidiaries, PT Semen Tonasa and PT Semen Padang, but the implementation of the decision may not run smoothly because the deal is likely to jeopardize investment, reported the Daily Indonesian Observer.

PT Semen Tonasa Managing Director Sadman has said the local people wanted the spin-off to be implemented soon but it was not easy because there were several things that needed to be discussed with stockholders and foreign investors.

“We need to involve an independent financial consultant like Bahana Securities which will calculate the amount that we have to return to the government, foreign investor Cemex and the stock market if we want to split from Semen Gresik Group,” Sadman said. “The calculation is needed to know our position and capacity before we negotiate with Cemex.”

Mexican cement giant Cemex owns 25% of Tonasa's stake, the government has 51%, and the stock market trades 24% of the shares.

Meanwhile, South Sulawesi's Governor Zainal Basri Palaguna has said that if Cemex pulled out, it would damage the image of Indonesia and investment prospects in South Sulawesi, particularly in the era of regional autonomy.