Indonesian cement maker PT Semen Gresik Tbk plans to spend IDR21.42trn (US$2.5bn) on capital expenditures in the next five years, its finance director Ahyanizzaman said.
Of the total, US$600m would be disbursed next year to finance the construction of new plants in Tonasa, South Sulawesi, and Tuban, East Java, as part of business expansion, he said here on Thursday.
The fund would also be used to finance the construction of a power plant, he said on the sidelines of Investor Summit 2012.
"US$400m to US$500m will be disbursed in the following years (2013-2015)," he said.
He said 40-60 per cent of the fund would come from external financing sources and the rest from the company’s internal cash which was currently estimated at IDR4trn.
The fund would also be used to finance the construction of two plants in Sumatra and Java with a combined capacity of 2.5Mt. The construction of the two plants would be started in 2012 at the latest and completed in 2013, he said.
"The value of the two projects will be US$400m to US$500m," he said.
Asked to comment on delay in the construction of a unit of Tonasa cement plant in South Sulawesi, he said it did not have an impact on the company’s financial performance.