National cement consumption rate declines

National cement consumption rate declines
Published: 25 April 2006

Indonesian cement consumption rate in the first quarter of 2006 reached 6,967,900t, down by 3.3 per cent from 7,208,335t in the same period last year. The decline occurs because of the weak purchasing power and the yet realized infrastructure projects.

Therefore, in the future months, the sales volume of cement is estimated to increase as the government starts realizing its infrastructure projects. Some cement factories will also expand the number of their factories to anticipate the rising demands in the future.

Data by the Indonesian Cement Association (ASI) revealed that the cement export volume also declined. In January-March 2006, the cement export volume reaches 497,005 units, down by 37.4 per cent from 793,922t in the same period last year.

Director General of Chemical and Agro Industry Benny Wachjudi disclosed that demands for cement would increase following the realization of some infrastructure projects.

"Some domestic cement producers indeed plan to expand the number of their factories, such as Semen Gresik, Semen Tonasa, and Semen Gresik to anticipate the rising demands," he noted. In the meantime, several foreign investors are also interested in making investments in the cement industry.

Data by the Department of Industry showed that PT Semen Gresik planned to build a factory in Tuban with the total production capacity of 2.1Mta of cement. In addition, PT Semen Tonasa also planned to build Tonasa III factory with the total production capacity of 1Mta of cement. The new factory is scheduled to be completed in 2008.(Bisnis)