Indonesia is forecast to become a net importer of cement in 2011 when the country will need to import around 200,000t.
Imports are needed with delay in the implementation of plan to expand the domestic production capacity amid growing consumption, said Erwin Aksa, the CEO of the Bosowa Group, one of the country’s cement producers.
Capacity expansion is expected to come to reality only in 2012 or 2013, therefore, there will be shortfall in domestic supply that has to be covered with imports, Erwin added.
Implementation of capacity expansion plan by existing producers has been delayed as a result of the global financial crisis, he said.
He said cement prices in other producing countries like Vietnam and Thailand are lower, therefore, imports would remain efficient.
Earlier the Indonesian Cement Association said cement sales on the domestic market rose 7.5 per cent to 3.575 million tons in August from 3.32 million tons in the previous month.
Demand for cement has increased with the start of large property projects to follow the interest rate by banks lately, the association leader Urip Timuryono said.
Source: Asia Pulse