Indonesia's multi-billion dollar capacity drive continues

Indonesia's multi-billion dollar capacity drive continues
Published: 05 April 2013


Indonesian cement capacity is expected to reach 100Mta by 2017 from the current 60.5Mta with domestic producers and new investors earmarking an estimated US$6.68bn over the next four years to build new and expand existing plants.

Local producers have already announced plans to invest some US$4.83bn over the next four years to expand capacities by an aggregate total of 35.3Mt. These include state-owned Semen Indonesia which is building two new 2.5Mta plants and Holcim Indonesia is on course to bring a new 1.7Mta works in Tuban this year to be followed by an identical line at the plant to be completed in 2015. Meanwhile PT Indocement (part of the HeidelbergCement Group) plans to expand its Citeureup plant by building a new integrated production line with a cement capacity of 4.4Mta, which also has a completion date of 2015.

New market entrants are expected to invest a total of US$1.85bn in 13Mta of capacity and include regional players such as Anhui Conch Cement (China), Siam Cement (Thailand), Jui Shin (Indonesia) and Semen Merah Putih of Singapore-listed palm oil producer Wilmar International.