Following the recent designation of Kebumen in Central Java as a UNESCO Global Geopark, Medco Group’s subsidiary PT Semen Gombong has formally cancelled its plans to develop a cement factory in the regency.
The cancellation was confirmed by regional environmental officials after the company’s environmental impact analysis (AMDAL) was rejected.
Head of Pollution and Environmental Damage Control at the Kebumen Environment, Forestry, and Park Agency (DLHKPP), Endah Dwiyantiningsih, said that the AMDAL submitted by PT Semen Gombong was not approved, halting all mining activities in the area.
“With the AMDAL rejected, the cement investment will not proceed under the current circumstances,” Endah told Indonesia Business Post on 18 June 2025. The appointment of Kebumen as a Global Geopark has elevated the region's significance not just in the realm of conservation, but also in shaping future development policies.
The project cancellation also aligns with broader concerns voiced by the Indonesian Cement Association (ASI) regarding national overcapacity in the cement sector. ASI chairman Lilik Unggul Raharjo has renewed calls for a nationwide moratorium on the development of new cement plants.
Lilik said that Indonesia's installed cement production capacity reached 119.9Mt in 2024, while domestic consumption lagged at only 64.9Mt leaving the industry with an average utilisation rate of just 56.5 per cent.
“This excess capacity is unsustainable. It affects operational efficiency, job creation, and investor confidence. We need stronger regulations, including a possible revision of Presidential Regulation No. 49/2021 on investment business sectors,” Lilik said.
