The Indonesian government said it would sell its 25% stake in the country's second largest cement maker PT Indocement Tunggal Prakarsa to German-based cement giant Heidelberger Zement AG, reports the Daily Indonesia Observer.

“Under the 25% stake divestment, the government won't have a share in Indocement,” Nyoman Tjager Director General of state-owned companies (BUMN) told the Observer. With the divestment, Heidelberger will become the majority shareholder of Indocement.

Finance Minister Prijadi Praptosuhardjo has previously said that the government had approved the divestment of its 25% stake in Indocement to Heidelberger. “We have issued a decree on the share divestment and we will leave the procedure to the Indonesia Bank Restructuring Agency (IBRA),” he said.

IBRA owns the stake in Indocement through PT Holdiko Perkasa, a holding company set up to manage stakes in more than 100 companies. The company was previously controlled by the giant Salim Group, one of IBRA's top debtors with debts totaling US$4.7 billion.

Tjager said his office expects to complete the privatization on 16 BUMNs this year to raise US$585 million to cover the budget deficit.