"Semen Kupang will be operational again in the middle of this year at the latest, after it has concluded a cooperation agreement with PT Sarana Agro Gemilang," BUMN Minister Mustafa Abubakar said here on Thursday.
He made the remarks after attending a seminar on " Accelerating Business Growth Through Collaboration in Technology."
The minister said that Sarana Agro Gemilang had become a partner of PT Semen Kupang in an operational cooperation scheme (KSO).
The partnership which was launched in connection with Semen Kupang`s restructuring programwas was carried out through the Asset Management Company (PPA).
Mustafa said that the Rp300 billion funds would be used as a working capital, for procurement of energy in the form of electricity and for repair and replacement of machines.
At the beginning of its operation Semen Kupang would have an annual production capacity of 300,000 tons and would be increased to 500,000 tons per annum in the coming three to four years.
Since March 2008, Semen Kupang has ceased operations as a result of liquidity problem, including its difficulties in settling its obligations with Bank Mandiri in the form debt principals and installments amounting to Rp600 billion.
At present, 61.48 percent of Semen Kupang`s shares belong to the government while the remaining 35.39 percent belong to Bank Mandiri.
Semen Kupang and the investor agreed that the KSO cooperation format was based on the annual sales volumes. About 7.5 percent of the sales for Semen Kupang while the remaining ones were for Sarana Agro and for paying its installment to Bank Mandiri.
"Semen Kupang can also provide jobs for 300 people," the minister said. (*)
Editor: Kunto Wibisono
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