China to expand cement factories in Indonesia

Jumat, 28 September 2012 | 08:53

Chinese investors are expected to expand their cement factories in Indonesia in order to increase the country`s annual cement production capacity from 60.56 million tonnes to 65 million tonnes, according to a senior official. "The production will increase by 7 percent because the capacity of the factories will be ramped up and there will be additional investment in the cement business as well," Director General for Basic Manufacturing Industry Panggah Susanto said here on Thursday.

He added that the investment plans had been approved by the Capital Investment Coordinating Board (BKPM).

"China`s cement producer Anhui Conch Cement Co Ltd will build a cement factory in South Kalimantan, East Kalimantan, West Kalimantan or West Papua, with a production capacity of 10 million tonnes per annum," Panggah stated.

He said China Trio Bit Engineering Co Ltd would also build a cement factory, with a production capacity of 1.5 million tonnes per year, in Subang, West Java.

"In the meantime, State Development and Investment Cooperation (SDIC) will invest in Indonesia by constructing a 1-million tonne capacity cement factory in Papua," Panggah pointed out.

SDIC is a Chinese cement company which runs a cement factory in Papua.

Meanwhile, Siam Cement, the largest cement producer in Thailand, has also expressed interest in building a factory with an annual capacity of 1.8 million tonnes  in West Java.

"The Chinese cement factories in Indonesia continue to expand even after PT Jui Shin started developing a cement factory in Karawang, West Java," Panggah said.

"PT Jui Shin will build a factory having an annual capacity of 1 million tonnes. All of it just proves that Indonesia is an attractive country for investment now," he added.