The National Investment Coordinating Board has approved Lafarge SA’s proposal to expand cement production capacity at its North Sumatra subsidiary PT Semen Andalas at an investment cost of US$450m, the board’s chairman Mohamad Lutfi said.
Lutfi said the Semen Andalas project was among largest foreign direct investments (FDIs) approved in June, prompting a large jump in FDI approvals for the second quarter.
Lafarge earlier said it has secured a US$30m bridging loan from Citigroup Inc to reconstruct its Indonesian plant in Aceh which was damaged by the December 2004 tsunami.
Lutfi did not say whether a portion of the French firm’s proposed investment will be used to repair the damaged Semen Andalas plant.
