Cement companies look at further investments, Indonesia

Cement companies look at further investments, Indonesia
Published: 31 July 2006

Some Indonesian cement companies are going to realize their investments to construct new plants in order to anticipate increasing market demands. Head of the Investment Coordinating Board (BKPM) Muhammad Lutfi informs that some of the realized investments in the second semester this year are helpful in fulfilling the growth of realized investment target by 15.2 per cent this year. 
"The one surely to realize its investment is PT Semen Andalas [Lafarge Group]. The group has made report to BKPM to realize their investments. PT Semen Jawa [controlled by Thailand Siam Cement] has also confirmed to build a plant in Sukabumi," inserted Lutfi yesterday. 
PT Semen Jawa is going to make US$95m in investments to build a plant in Sukabumi, West Java, while Semen Andalas is going to construct new plants in Langkat and North Aceh regencies with a total investment of US$450m. 

Lutfi added that publicly listed PT Holcim Indonesia also plans to develop a new plant. With news comments at the end of March Holcim stated it would develop a new cement plant with an annual production capacity of 3Mta with US$300m (IDR2.7 trillion) in investments. 
"Data by BKPM have consistently showed that domestic demands for cement are high," Lutfi continued.  He explained that the sales prices of cement in the domestic market were more attractive compared to those in other countries. In Malaysia, for example, the margin in sales prices could reach over US$20 per tonne.