Semen Gombong construction to start in April
Semen Gombong construction to start in April
JAKARTA (JP): PT Semen Gombong, a subsidiary of PT Meta Epsi Inti Dinamika, will begin constructing its cement plant in Central Java in April, the company's president, Hitler Singawinata, said yesterday.
"We will invest some US$300 million in the cement plant which will have a designed capacity of 1.75 million tons a year," Hitler told The Jakarta Post.
He added that his company had acquired 300 hectares of the 450 hectares of land it needs for its industrial plant, which is located 65 kilometers from Cilacap harbor and 130 km northwest of Yogyakarta.
He denied earlier news reports that his company was one of the 11 cement projects in C. Java which could lose their licenses due to project delays.
Soedarsono, chairman of the Central Java office of the Investment Coordinating Board (BKPM), was quoted by the press on Feb. 19 as saying that he had asked the central government to revoke the investment licenses of 11 cement projects in the province that are behind schedule.
Hitler said that Soedarsono had assured him that Semen Gombong's project has not been included because it's construction is on schedule.
Deputy Chairman of BKPM Wardijasa told reporters on Monday that an investment project would automatically lose its license if it was not operating after three years.
However, he said, the 11 cement plant projects in Central Java are now making progress.
Wardijasa acknowledged some delays were due to land acquisition and financial problems.
Hitler said that the chairman of Meta Epsi Inti Dinamika Arifin Panigoro is committed to diversifying the company's businesses from petroleum -- its core business -- to the cement industry.
"Geological studies and raw material exploration have been conducted by the Directorate of Geology and Mineral Resources and the feasibility study by PT Rekayasa Industry," said Hitler.
He added that state-owned PT Semen Gresik has signed a memorandum of understanding on technical assistance with Semen Gombong.
The assistance will include preparatory works, project management, cement plant operation and a marketing system.
He said his company is finalizing financial arrangements with Rekayasa Industry and Krupp Polysius of Germany for the supply of cement plant equipment.
Construction of the project is expected to be completed in October, 1998. (kod)