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)