Heidelberger Cement of Germany has agreed to take over US$250 million of debts from PT Indocement Tunggal Prakarsa and convert them into shares in the company.

The deal is part of an agreement between Heidelberger and Indocement's two major shareholders, PT Mekar Perkasa and PT Kaolin Indah Utama, to set up a 50/50 joint venture company to control Indocement.