Indonesia: growth to ease in 2006

Indonesia: growth to ease in 2006
Published: 25 January 2006

Indonesia’s domestic cement plants are expected increase production and exports this year but their growth will probably slow to under 10 per cent, a senior official said here on Monday. Director General of the Ministry of Industry, Benny Wahyudi said increase in the infrastructure and housing development would help boost the growth of industries at home.

He said that this year the property and housing sectors were expected to grow by 25 per cent, adding that the construction of 523km of toll roads would need a significant quantity of cement. The director general put an estimate that each km of toll road would need some
10,000t of cement.

The cement sector would also be boosted by the development of about one million houses in Java and in other regions. But he also acknowledged that the growth of industry could also be hampered by increasing energy costs at home.