Indonesia capacity seen rising 4% this year

Indonesia capacity seen rising 4% this year
Published: 07 June 2011

Indonesian cement production capacity will increase by 2.5Mt to 68.5Mt by the end of this year, amid strong domestic consumption in Southeast Asia’s largest economy, an industry official said on Tuesday.

This will be a near four percent increase on current capacity of 66Mta, said Urip Timuryono, chairman of the Indonesian Cement Association (ASI).

"Semen Tonasa is expanding its cement production capacity by 2.5Mta with an additional investment of US$400-450m. It is scheduled to be completed before the end of this year," Urip told Reuters.

He said he was optimistic domestic cement consumption will grow in 2011 at 6.5-7 per cent, driven by property development for housing, offices and malls in an economy seen growing at 6.4 per cent.

Urip said Semen Gresik and Holcim were also expanding, with Semen Gresik investing US$400-450m in Tuban, East Java, to increase capacity by 2.5Mt in 2012, and Holcim investing around US$300m to increase its capacity by 1.8Mt by 2013-2014.