Indonesia: The capacity of Indonesian cement industries will increase by 5Mt/yr in 2012 to 59Mt/yr. "The capacity hike is needed to respond to increasing demand in the domestic market," said the head of the Indonesia Cement Association (ASI), Urip Trimuryono.
Urip said the additional capacity would come from PT Semen Gresik and PT Semen Tonasa, which each plan expansions of 2.5Mt/yr. In 2013 the installed capacity will increase by 1.8Mt/yr following the completion of the construction of a plant owned by PT Holcim Indonesia.
Investment in the cement industry is excluded from the list of industries banned for foreign investment and Urip said that local cement producers were ready to face competition from foreign investors. "This means anyone may build a cement factory in Indonesia but must be ready for free competition," he said.
Three foreign companies plan to invest in the national cement sector, namely Lafarge Cement Indonesia, which will build a cement factory in Langkat, North Sumatra with a capacity of 1.5Mt/yr with an investment worth USD350-550m. The second company is China Anhui Conch Group, which is investing a massive USD2.35bn in cement factories in the four eastern provinces of South Kalimantan, East Kalimantan, West Kalimantan and West Papua. The third line with the company is China Triumph International Engineering Co., which will invest USD350m to build a 2-3Mt/yr cement plant in Grobogan, Central Java.