Oversupply encourages producers to export cement

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)