The Indonesian government has issued licenses for 17 new cement projects but none of the projects has been implemented despite an expected shortage in cement supply. Industry Minister Andung A. Nitimihardja told legislators in a working meeting on Monday only four of the projects are expected to be implemented as scheduled, each with a capacity of 1.5Mta despite rapidly growing demand. Andung said in 2004 the country’s cement consumption rose 9 per cent to 30.1Mt, with annual growth expected to rise to 10 per cent in the coming years. He said, however, he saw growing interest in the government’s ambitious plans to build and rehabilitate the country’s infrastructure.
In 2004, the country had a total production capacity of 47.49Mt but the capacity has been reduced to 46.09Mt after PT Semen Andalas in Aceh was destroyed by the recent tsunami.