RI to export 5m tons of cement<\/p>\n
JAKARTA (JP): The Indonesian Cement Association projects the
\ncountry's cement exports will increase more than sixfold this
\nyear as producers boost exports to offset the slump in local
\ndemand.<\/p>\n
The association projects exports will reach five million
\nmetric tons by year's end, compared to the 800,000 tons exported
\nlast year. According to its data, cement exports had reached 2.5
\nmillion tons as of September, of which the country's largest
\ncementmaker, PT Semen Gresik, and its subsidiaries contributed
\n800,000 tons.<\/p>\n
Semen Gresik has targeted to export up to 1.25 million tons
\nthis year.<\/p>\n
Unlike in the building boom of the mid-1990s when the country
\nsuffered shortages, the industry is now suffering a huge
\noversupply of about 10 million tons due to falling demand and
\nincreasing capacity.<\/p>\n
An association executive who requested anonymity said on
\nWednesday that domestic demand for cement was likely to fall 35
\npercent this year to 20 million tons, from 30 million tons last
\nyear.<\/p>\n
Next year, he said, domestic demand for cement would likely
\nremain weak. \"If there is an improvement, it would just be 3
\npercent to 5 percent.\"<\/p>\n
He said combined production capacity of Indonesian cement
\nfirms totaled about 45.6 million tons per annum, but actual
\nproduction would not surpass 30 million tons this year.<\/p>\n
\"We actually have an export ability of up to 10 million tons,
\nbut we would not be able to do that fully because there is a
\nproblem in the delivery system because most export destinations
\nare too far away from Indonesia, for instance, Africa or America.<\/p>\n
\"We could not export our products to Asian countries right now
\nbecause they also have economic problems like us here.\"<\/p>\n
Several Asian nations which were formerly cement importers
\nhave turned to exporting.<\/p>\n
Due to the increasing supply in the international market, he
\nsaid, cement prices had slumped. The price of Indonesia's cement
\nis now US$23 per ton free on board (fob), a huge decrease $35 per
\nton fob in 1997.<\/p>\n
Besides Semen Gresik, all of the country's large cement
\nproducers have already shipped some of their excess production to
\nexport markets.<\/p>\n
PT Indocement Tunggal Prakarsa, controlled by the Salim Group
\nand the country's second largest cementmaker, exported 575,000
\ntons of cement during the first half of this year. It is
\ntargeting to export 1.35 million tons in the second half of this
\nyear.<\/p>\n
PT Semen Cibinong under the Tirtamas Group exported 505,000
\ntons during the first five months of this year. (29)<\/p>",
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"sponsor": "Okusi Associates",
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