JAKARTA (TheInsiderStories) – Former President Director of state-owned gas producer PT Perusahaan Gas Negara Tbk (IDX: PGAS) Hendi Prio Santoso has been picked as the new boss of cement producer PT Semen Indonesia Tbk (IDX: SMGR). The decision was announced at an extraordinary shareholder meeting of the company on Friday (15/9).
An alumnus of the Faculty of Finance and Economics, University of Houston, Hendi became President Director of PGAS on June 13, 2008, and since that time has been able to grow PGAS into one of Indonesia’s top five publicly-listed state-owned companies.
He has also served as a Commissioner at PT Saka Energi Indonesia — an upstream oil and gas exploration company — since 2013. Before that Hendi was the President Commissioner of PT Transportation Gas Indonesia for five years, and the Chief Financial Officer and Finance Director for PGAS.
He also worked at JPMorgan Securities Indonesia for three years as Director of the investment banking sector, from 2004-2007. He started his career at Bank Niaga (1990-1991) and continued in Citibank NA, Indonesia (1991-1996).
In 1996, he was appointed Vice President of PT Perdana Multi Finance, then as Director of Development of PT Perdana Inti Investama (1996-1998). In 1998-2001 he served as Associate Director of PT Bahana Securities, then served as Director of PT Anugra Cipta Investa (2001-2004).
Semen Indonesia has prepared US$449m to be spent on capital expansion upgrades in 2017 to support government infrastructure targets. The plan includes four cement plants with a total production capacity of 10.5 Metric tons (Mt) per year.
The Rembang plant in Central Java and the Indarung VI plant in Padang, West Sumatra are in the final stages of construction. New plants in Aceh and Kupang are also being planned for completion in 2019 and 2020, respectively, although these projects will require additional funding.
The cement producer is also planning to build two packaging plants in Bengkulu and Maluku, and a 30MW waste heat power plant at its plant in Tuban, East Java.
The company plans to spend up to $4.3 billion in capital expenditure from 2015 to 2019 to expand its production capacity. Semen Indonesia has earmarked a capex of approximately $687.7 million for 2015, $1.28 billion in 2016, $1.06 billion in 2017, $577.79 million in 2018 and finally, $656.3 million in 2019.
Corporate Secretary Agung Wiharto said that Semen Indonesia has forecast a 5 percent rise in demand for cement in 2017 to 70Mt. This is mainly due to government plans to boost infrastructure development across the country.
Writing by Elisa Valenta, Email: email@example.com