Indonesian supply shortage to draw nearer

Indonesian supply shortage to draw nearer
Published: 15 September 2008

The national cement supply shortage is estimated to start taking place next year, faster than 2010 as previously estimated.

Such a condition happens because cement consumption this year will nearly surpass national cement productivity.

National cement producers can only supply 36.1Mt of cement this year.

An estimate by PT Semen Gresik Tbk showed the total cement consumption in the first semester of 2008 reached 18.89Mt, up by 21.2% from 15.6Mt in the first semester of 2007.

This year, Semen Gresik forecasts cement consumption would grow by 18% - 20% to 38.4Mt, creating a possible deficit of 2.3Mt.

"Cement supply shortage can happen faster judging from the high domestic cement consumption. The key is to secure domestic supply," informed Vice President Director of PT Semen Gresik Tbk Heru D. Adhiningrat yesterday.