Indonesia’s Cement Production 66.60 MT in 2014
(The Insider Stories) - Indonesia cement production will reach 66.60 million tons (MT) of cement in 2014 or a surplus of 0.7% from national demand 65.90 MT of cements. By then, utilisation is estimated to reach 99% of total production capacity.
This year the total production estimated at 60.75 MT of cement or a surplus of 0.3% from national demand 60.46 MT of cement
PT Semen Indonesia (IDX:SMGR)’s chief Dwi Sutjipto said during 2014, the domestic supply estimate 65.9 MT of cement from the total capacity, three million tons will be imported and 200,000 tons will be exported. This year, the domestic supply 60,5 MT of cement, two million tons will import and 500,000 tons will export.
According to him, in 2013, capacity production’s of SMGR reaches 27.7 MT of cement, PT Indocement Tunggal Prakarsa (IDX:INTP) 20.5 MT of cement, PT Holcim Indonesia (IDX:SMCB) 10.4 MT of cements, PT Semen Bosowa 6.0 MT of cements, PT Semen Andalas 1.6 MT of cements, PT Semen Baturaja 1.3 MT of cement and PT Semen Kupang 500,000 MT of cement.
He added, in the next five years total capacity of cement will grow almost double from 2012′s 54.24 MT of cements. New capacity from nine cement plants develop by Semen Indonesia, Indocement, Holcim, Bosowa and Semen Andalas all over Indonesia estimate 35.1 MT tons from installed capacity 60.72 MT of cements with total investment US$4.53 billion.
Soejipto said, foreign producers also has plans to develop in Indonesia with total capacity 37.2 MT of cement and total investment US$3.76 billion until 2018. The biggest plans is China’s Anhui Conch Cement 13.7 MT of cement in South Kalimantan, East Kalimantan, West Kalimantan and West Papua.
Others are Thailand’s Siam Cement ind West Java with capacity 1.8 MT of cements, China National Building Material Company Ltd 2.4 MT of cement in Central Java, PT Banten Zhejiang 2.0 MT of cement in Banten, Semen Barru 3.3 MT of cement in South Sulawesi, Semen Panasia 1.9 MT of cement in Central Java, Semen Puger 600,000 MT of cement and Wilmar Group 11.5 MT of cement.
Strong domestic demands and potential infrastructure developmet is the main reason why the domestic players and foreign investors plans to build cement plants in Indonesia.
