State-owned trust company Danareksa has agreed to partly finance the construction of a Rp 4.5 trillion (about US$500m) cement plant to be built by Semen Gerobogan in Central Java.
Semen Gerobogan general manager Tonny Santoso said Tuesday that Danareksa had signed a letter of intent (LoI) to become one of the financiers for the cement plant, which when completed will have a production capacity of 2.3Mta.
However, Tonny refused to disclose any details on the size of Danareksa’s investment in the project.
"For sure, three months after the signing of the LoI, we will start the preparations for the construction of the cement plant," he said.
The plant will occupy about 2500ha of land, including a lime mining concession area. For the first stage of the project, only 60 hectares of land will be used for the factory facilities and another 1000ha for lime mining.
The deal signed by Danareksa and Semen Gerobogan was one of 38 investment agreements signed during the Central Java Infrastructure Business Forum, held Nov. 5-7 in Surakarta.