TONASA TO MEET 40 PCT CEMENT NEED IN EASTERN INDONESIA

By Andi Abdussalam
Jakarta, Feb 20 (Antara) - Infrastructure and economic development in Indonesian eastern regions can now get further boost after the operation of  a new unit of state-owned cement factory PT Semen Tonasa in South Sulawesi province.          With the completion of its Unit V cement factory, PT Semen Tonasa which was inaugurated by President Susilo Bambang Yudhoyono in Pangkep District, South Sulawesi, on Wednesday, could now produce a total of 6.7 million tons of cement per annum and supply 40 percent of the need for cement in Indonesian eastern regions.          PT Semen Tonasa, a subsidiary of publicly listed state-owned PT Semen Indonesia is expected not only to serve as a machine of development growth in Indonesia's eastern regions but also as producer of commodity which is able to face competition in the ASEAN Economic Community next year.          State Enterprises Minister Dahlan Iskan stated that cement commodity produced by Indonesia was ready to face free markets such as the ASEAN Economic Community in 2015.          Dahlan claims that what President Susilo Bambang Yudhoyono had decided to merge Indonesia's major cement companies into PT Semen Indonesia, has laid an important strategy in the development of cement business in the country.          Major cement producers PT Semen Padang, PT Semen Gresik and PT Semen Tonasa were merged in 2013 into PT Semen Indonesia as their holding company.

DOMESTIC DEMAND FOR CEMENT EXPECTED TO INCREASE

By Andi Abdussalam

Jakarta, Jan 26 (ANTARA) - Cement companies in Indonesia are expanding their production in an effort to meet increased domestic demand for cement, particularly demand caused by the country's infrastructure development projects.          The government is now carrying out a number of infrastructure development projects as part of its Master Plan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI), which focuses on infrastructure.          Along with the infrastructure development, demand for cement at home is expected to increase by some 10 percent this year.          According to Tuti Rahayu, the Ministry of Industry's director for downstream chemical industry, cement consumption in Indonesia is expected to reach 62 million tonnes this year, up 10 percent from 55 million tonnes in 2012.          "Domestic consumption of cement increased by 14.5 percent last year, compared with 48 million tonnes in 2011. Even in Indonesia's eastern regions, the demand increased by about 54 percent, far higher than other regions of the country," Tuti Rahayu said on Friday.         Therefore, the government has set itself a target to produce 65 million tons of cement this year, up 7 percent over last year, which reached 60.56 million tonnes.         "We have projected cement production of 65 million tonnes in 2013, up 7 percent from last year's production at 60.56 million tonnes. We hope factories would increase their investment and production capacities in order to meet the production target,"  Director General for Manufacturing Industrial Base of the Ministry of Industry, Panggah Susanto, said.