Cement rescheduling won't affect supply<\/p>\n
JAKARTA (JP): Director General of Domestic Trade at the
\nMinistry of Industry and Trade Ilchaidy Ilyas said yesterday the
\ngovernment's decision to review several cement projects would not
\naffect future supply.<\/p>\n
He said those cement projects, if postponed, would lower the
\ncountry's cement production growth in the future but the demand
\nfor cement would also decline due to the postponement of the
\ncountry's large industrial infrastructure projects.<\/p>\n
\"Therefore, we need not worry about (shortages of supply),\" he
\nwas quoted by Antara as saying after inaugurating the electrical
\nwire factory of PT Karya Yasantara Cakti in Cikampek, West Java.<\/p>\n
The government recently announced a retrenchment measure to
\ncope with the rupiah's depreciation against the U.S. dollar,
\nwhich included the postponement and review of 156 government
\nprojects worth Rp 111.18 trillion (US$38 billion).<\/p>\n
Eighty-one projects have been postponed and 75 others are
\nunder review.<\/p>\n
The reviewed projects include six government cement projects:
\nTuban V of PT Semen Gresik, Kupang III of PT Semen Kupang, Jabar
\nI of PT Semen Padang, Jabar II of PT Semen Padang, Tonasa V of PT
\nSemen Tonasa and Jambi I of PT Semen Padang & PT Semen Baturaja.<\/p>\n
Minister of Finance Mar'ie Muhammad said last week that based
\non the results of a study, projects would either be continued,
\npostponed or rescheduled.<\/p>\n
Ilchaidy said the cement projects were designed to anticipate
\nthe country's growing demand for cement in the construction and
\ntoll road sector in the future.<\/p>\n
But a significant growth in cement demand was not likely to
\noccur due to the postponement of many toll road and construction
\nprojects.<\/p>\n
In the toll road sector alone, 36 projects have been postponed
\nand 17 projects are under review.<\/p>\n
Ilchaidy said there was currently an oversupply of cement in
\nIndonesia, which reached 2 million tons a year.<\/p>\n
He said if local demand exceeded the country's production
\ncapacity in the future, Indonesia could still import from
\nThailand which now produced more cement than demanded by the
\nlocal market.<\/p>\n
According to Ilchaidy, Thailand's cement production totals 32
\nmillion tons a year, while the country's demand has declined to
\n20 million tons a year amid the monetary crisis which has
\nbattered the country since July. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cement-rescheduling-wont-affect-supply-1447893297",
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"sponsor": "Okusi Associates",
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