Oversupply encourages producers to export cement

JAKARTA (JP): Some Indonesian cement producers plan to export their products to offset oversupply on the domestic market.

Soepardjo, chairman of the Association of Indonesian Cement Producers (ASI), told reporters yesterday that the country now has an oversupply of around 10,000, as a result of the recent imports encouraged by the government to help overcome problems caused by a shortage of supplies last year.

Minister of Industry Tunky Ariwibowo last year allowed companies to import cement from countries such as China, India and the Philippines, to meet increasing domestic demand.

"Due to the oversupply, at least, three cement companies have planned to export their cement very soon," he said, adding that they are the state-run PT Semen Padang and private producers PT Semen Cibinong and PT Indocement Tunggal Prakarsa.

"I don't know exactly the destinations of their exports but they seem to be Indonesia's permanent cement importers," he said.

Indonesia, which now has 10 cement manufacturers, is capable of producing 22.99 million tons per year, while domestic demand for cement is estimated at 19 million tons yearly.

It estimated that the production of cement will raise to some 25 million tons in 1995.

A number of companies are expanding their capacities to meet increasing demand, which is expected to reach 25 million tons in 1996. (fhp)