Local legislators asked central government to save PT Semen Kupang from bankruptcy

Antara ,  Kupang   |  Wed, 07/02/2008 3:34 PM  |  National

East Nusa Tenggara legislators have asked the central government, as the majority share holder of PT Semen Kupang, to immediately revise the management of the only cement factory in East Nusa Tenggara province to prevent it from becoming bankrupt.

"We want the central government, as the majority share holder, to comprehensively reform the company in terms of capital employment, personnel and equipments. We do not expect a partial
reform, as is the case now," said Commission D vice chairman Hendrik Rawanbaku in Kupang on Wednesday.

Legislator Yahidin Umar from the United Development Party faction, Vincen Patah from the Indonesian Democratic Party of Struggle faction and Jonathan Kana from Democrat Party faction
share similar opinions.

Jonathan Kana further called for the central government to immediately hold a share holders extraordinary meeting to replace all the members of the board of directors.

"There is no other choice but to totally replace all directors with more professional figures to save the company," said Kana, who is also the vice chairman of Commission A.

The management of PT Semen Kupang decided on June 27 to halt the factory's operations and relieve all of its employees temporarily until an indefinite period of time.

The decision was made under the condition that during the last few months the factory was unable to operate due to lack of electricity supply.

A Jakarta based electricity supplier has terminated its contract with PT Semen Kupang because the cement factory was unable to pay its debt.(**)

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