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Cement maker Semen Gresik may buy a stake in ailing paper firm Kertas Kraft Aceh, ensuring ample supply of paper for Semen Gresik’s packaging needs.

The Surabaya-based company is setting aside Rp 600 billion to Rp 800 billion ($65 million to $87 million) to finance the acquisition of Kertas Aceh, a fellow state-owned company, Dwi Soetjipto, president director of Semen Gresik, told Investor Daily. He said the company would take out loans to finance the purchase.

The move may also be a sign that the company has heeded calls by State Enterprises Minister Dahlan Iskan to buy up failing state firms in order to trim state companies, from 142 at present to 126 next year.

Dwi said that Semen Gresik was working on the acquisition plan.

“We are still studying that acquisition plan, we have to make sure that the acquisition would ensure the sustainability of Kertas Aceh,’’ Dwi said.

“It’s pointless if it proved otherwise.”

Kertas Aceh, established in 1983 and headquartered in Aceh province, ceased operations in early 2008.

Local media reported that the paper maker halted production because it faced difficulties in obtaining raw materials, a stoppage in the supply of gas and unfavorable political conditions at the time in Aceh. Kertas Aceh bought raw materials from Central Aceh and Southeast Aceh, according to its Web site.

Dwi said the two companies signed an agreement that would allow Semen Gresik to buy paper produced by Kertas Aceh. Government officials said that Kertas Aceh should resume operations some time next year.

Debt-ridden and ailing companies such as Kertas Aceh have been cited as examples of poorly managed state enterprises.

Analysts have blamed rampant corruption and meddling by political parties for the poor performance of Indonesia’s state-owned companies.

Among the government’s plans to reduce the number of state enterprises, state publishers Pradnya Paramita and Balai Pustaka will merge and be acquired by state telecommunications company Telekomunikasi Indonesia.

State-owned textile company Industri Sandang will be acquired by construction firm Sarana Karya, after which Sarana will be acquired by Wijaya Karya, another state construction company.

Plans to revamp other state-owned companies — glass company Iglas and shipbuilder IKI — are still being negotiated.

Shares of Semen Gresik rose by 2.3 percent to Rp 9,050 in Tuesday trading.

The shares have fallen 4.2 percent this year.