Association welcomes foreign investment, Indonesia

Association welcomes foreign investment, Indonesia
Published: 14 July 2011

The Indonesian Cement Association (ASI) says it welcomes several foreign companies’ plans to build new cement factories in the country, adding that their operations will not affect the existing cement producers’ operations, according to an industry group.

ASI chairman Urip Timuryono said on Tuesday in Jakarta that, because the new plants would be primarily designed to fulfill the supply shortage in the eastern part of Indonesia, their operations would not affect the existing cement producers’ markets. 

“The existing cement companies are also expanding their production capacities to meet the surge in demand,” he told The Jakarta Post. 

The new plants would fulfill the cement demand of nearby areas, he added. 

“Plants in Kalimantan and Papua, for example, will supply cement around those regions,” he said, adding that the absence of cement plants in certain areas provided ample room for new investment. Recently, three foreign cement firms unveiled plans to build cement factories in Indonesia.

Lafarge said earlier this month that it planned to build a cement plant in Langkat, North Sumatra, which could produce 1.5Mta, with an estimated investment of up to IDR5trn(US$585m).

Last month, Chinese firm Anhui Conch Cement pledged to invest US$2.35bn to establish four cement plants in East Kalimantan, West Kalimantan, South Kalimantan and West Papua.

Another Chinese firm, China Triumph International Engineering Co. Ltd. (CTIEC), through its unit China National Building Materials Group, would team up with PT Semen Grobogan to build a cement plant capable of producing 2Mta in Grobogan, Central Java, which would cost an estimated US$350m.