State-owned cement maker PT Semen Kupang in the eastern Indonesian province of East Nusa Tenggara is planning to increase its annual production to 270,000t starting 2007 from the current 100,000t.
"We are optimistic that the target is achievable as we have received Rp50bn in fund from the revised 2006 State Budget. The fund will be used as working capital to increase production and expand market," PT Semen Kupang President Director Abdul Madjid Nampira said here on Wednesday.
Nampira explained that the allocation of the new fund from the revised 2006 budget increased the government’s state capital participation in the cement factory’s shares.
The fund, which came from 13 state-owned companies, was intended to help revive the factory, he added.
He said that the fund would be disbursed in December 2006. In the first phase, the cement production would be increased to 210,000tpa.
"The next phase, the production would be up to 270,000tpa," he said.