Indocement to spend IDR1.4trn on two factories, Indonesia

Indocement to spend IDR1.4trn on two factories, Indonesia
Published: 03 December 2009

Publicly listed PT Indocement Tunggal Prakarsa plans to spend IDR1.4trn investment on two cement factories, which will be realised during 2010-2013.

The company plans to build two cement factories in Citeureup, West Java, and Tarjun, South Kalimantan, each of which is estimated to require IDR700 billion to make.

"We will develop a cement mill in Citeureup with an annual capacity of 2.0-2.5Mt. The projects will start construction next year and will require 1 year- 1.5 years to realize," said director of Finance at Indocement Christian Kartawijaya yesterday.

The Citeureup cement factory is estimated to require US$70-87.5m to realise.

According to Christian, the company would also build a new factory in company’s existing locations in either Citeureup or Tarjun, South Kalimantan. The plant is targeted to start operation in 2013 and will require IDR700bn.

"We are currently reviewing whether we will build the new factory in Tarjun or Citeureup. The plant later will have an annual production capacity of 2-3Mt," he said.

For a start, added Christian, the company would allocate IDR200bn in 2010 to develop a cement mill in Citeureup.

He continued the total capital expenditure next year would reach IDR750bn, IDR550bn would go to spare-part maintenance and replacement and IDR200bn to initial payment for the soon to be built factory.