Wed, 11 Sep 1996

Soeharto dedicates eight projects in South Sulawesi

JAKARTA (JP): President Soeharto inaugurated the new expanshen unit of a cement plant in South Sulawesi, along with seven other projects in the province, with a call for intensified industrialization and agricultural development in the country.

"The process of industrialization we have conducted must be further developed, expanded and deepened...The industry is the main vehicle for technological development for us to catch up with the developed countries," Soeharto said at the ceremony in Pangket regency, about 62 kilometers north of the south Sulawesi capital of Ujungpandang.

"Large-scale industrial development doesn't mean we can neglect the agricultural sector... Past experiences teach us that a country will fail if it relies only on industrial development while neglecting the development of the agricultural sector," he added

Present at yesterday's ceremony were, among others, Minister/State Secretary Moerdiono, Minister of Industry and Trade Tunky Ariwibowo, Minister of Public Works Radinal Moochtar, State Minister of Public Housing Akbar Tandjung, South Sulawesi Governor H.Z.B. Palaguna and Chief of the Wirabuana Military Command Maj. Gen. Agum Gumelar.

The expansion of the cement plant, owned by state-owned PT Semen Tonasa, has increased the firm's production capacity by 2.3 million tons to 3.48 million tons per annum.

"The expanded production capacity is adequate to meet the demands for cement in eastern provinces," said the President.

Tungky said at the ceremony that the factory is now preparing to build its fifth production unit with a capacity of 2.3 million tons per year, which will bring the country's total cement production capacity in 1998/99 to 46.8 million tons a year, exceeding the domestic demand of 33 million tons.

The president of Semen Tonasa, E. H. Nizar, said that the company's fourth production unit was built at a cost of Rp 964.4 billion, of which Rp 267.3 billion was financed with export credit, Rp 160 billion with domestic loans, Rp 200 billion with government equity and Rp 337 billion with company equity.

Project

The seven other projects inaugurated by President Soeharto include a Rp 20 billion cacao processing plant owned by PT Effem Indonesia in Ujungpandang. It has an annual production capacity of 5,000 tons of cacao butter and 6,000 tons of cacao powder.

The other projects include a Rp 15 billion voltage regulator factory owned by PT Kalla Elektrik System, a Rp 32 billion marble quarrying plant operated by PT Daya Cayo Asritama, a Rp 30 billion marble factory belonging to PT Quarindah Eikamaju Marmer and a World Bank-sponsored infrastructure project worth Rp 52.9 billion.

The other two projects are 5,327 houses built in four towns at a cost of Rp 48 billion and a 20-hectare housing complex in Ujungpandang worth Rp 22 billion. (jsk)