Indonesia’s plans to spend on infrastructure projects as part of a US$6bn fiscal stimulus package will help support domestic demand for cement, an industry official said on Wednesday.
Urip Trimuryono, chairman of Indonesia Cement Association, said domestic demand for cement is seen at 36.5Mt this year. That is a four per cent drop from 2008, when domestic demand grew 11.5 percent to 38.09Mt, according to data from the association published in January.
"We may not slow down this year because the government will issue a stimulus. It helps support local demand as private sector slow construction project," Trimuryono told reporters.
Trimuryono also said Indonesia may import about 1.5Mt of cement this year while waiting for cement firm PT Semen Andalas Indonesia, a local unit of cement maker Lafarge to rebuild its cement factory in Aceh, which was damaged by the tsunami in 2004.