Indonesian cement company PT Semen Tonasa plans to build a cement packing plant with a packing capacity of 600,000pta of cement in Jayapura this year.
Semen Tonasa, the largest cement producer in eastern Indonesia with factory in South Sulawesi, plans the project to save distribution cost, said Sattar Taba, the president of the subsidiary of state cement maker PT Semen Gresik.
With the packing plant in Jayapura the company could save up to 40 per cent of distribution cost, a major element making up the selling price of the building material in the easternmost region of he country, Taba said.
He said so far the company pays at least IDR3bn (US$330,000) a month for shipping cost to Jayapura and loading and unloading cost.
The plant is expected to be operational by the end of this year or early next year, Taba said.