Construction sector pushes cement demand<\/p>\n
JAKARTA (JP): The growing construction industry will increase
\nIndonesian cement demand to 30 million tons next year from about
\n28 million tons this year and 15.4 million tons last year, the
\ncountry's largest cement producer predicted yesterday.<\/p>\n
President of the publicly listed PT Indocement Tunggal Perkasa
\n(ITP), Sudwikatmono, said yesterday the demand for cement would
\nincrease steadily to reach 67 million tons in 2005.<\/p>\n
\"We will therefore build two more cement plants, one in
\nCiteureup, West Java and another one in South Kalimantan with a
\ntotal combined investment of around US$728 million (Rp 1.74
\ntrillion),\" Sudwikatmono added.<\/p>\n
He said total investment for the Kalimantan plant was $499
\nmillion and the one in Citeureup $229 million, Sudwikatomono said
\nafter the company's shareholders meeting.<\/p>\n
He said the Citeureup plant was expected to be in operation
\nby mid-1999 and the Kalimantan plant by mid-1998. Both plants
\nwould each have an annual capacity of 2.5 million tons.<\/p>\n
He said the two new plants would expand Indocement's total
\ncement capacity to 15 million tons per year in 1999 from 10
\nmillion tons at present.<\/p>\n
\"ITP's production capacity will continue to be expanded to
\nreach 20 million tons by 2000,\" he said, adding that Indonesia
\nwould not see any cement glut as predicted by some analysts.<\/p>\n
President of PT Semen Cibinong Hashim Djojohadikusumo early
\nthis month predicted that Indonesia would have a cement
\noversupply of between three to four million tons a year from 1998
\nto 2000.<\/p>\n
\"No I don't think there will be cement oversupply during those
\nyears,\" Sudwikatmono added.<\/p>\n
He contended, however, an oversupply might occur if all the
\ncement projects already licensed would be completed on schedule.<\/p>\n
According to Indocement's report, there are now nine cement
\nmakers with a different production capacity. They include PT
\nIndocement Tunggal Perkasa, PT Semen Cibinong, PT Semen Gresik,
\nPT Semen Andalas Indonesia, PT Semen Padang, PT Semen Baturaja,
\nPT Semen Tonasa, PT Semen Kupang and PT Indo Kodeco Cement.<\/p>\n
Sudwikatmono said yesterday that ITP currently commanded 40
\npercent of the cement market in the country.<\/p>\n
He said Indocement recorded a total net profit of Rp 551
\nbillion ($225.8 million) in 1996.<\/p>\n
He said the company would distribute around Rp 169.01 billion
\nas dividend to its shareholders, would keep Rp 25 billion for
\ncompany's cash reserves and Rp 352.8 billion in retained earnings
\nand would allocate Rp 4.67 billion for the poverty alleviation
\nprogram through Yayasan Dana Kesejahteraan Mandiri foundation.<\/p>\n
Finance director of the firm Benny S. Santoso said Indocement
\nprojected a 15 percent in next profit this year. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/construction-sector-pushes-cement-demand-1447893297",
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