’Cement Plants Should be Built Overseas’

’Cement Plants Should be Built Overseas’
Published: 04 August 2006

Rising demands for cement from the international market should be responded by the national cement producers by constructing cement plants overseas, especially in countries that have huge market and abundant stock of raw material.

Secretary General of the Department of Industry Agus Tjahajana Wirakusumah, who is also President Commissioner of publicly listed PT Semen Gresik, argued that it was not a wise decision for some national cement companies to export their cement amidst the declining domestic demands.

"Export will not bring any profit. Cement is a cheap commodity, but the distribution cost is expensive. If the cement industry wants to grow, cement companies should make investments abroad. It will be more profitable to make investments in cement plant construction in other countries rather than to export cement," he said yesterday.

Agus cited that Holcim and Heidelberg were global cement companies that decided to construct their cement plants in Indonesia as part of business expansion.

"Heidelberg is even prohibited from building cement plants in their own country. If other countries can do that, why can’t we?" he questioned.