Cement Indonesia Optimistic Cement Production Can Grow Up To 4 Percent

By : Hariyanto And Aldi Firhand. A | Wednesday, August 23 2017 - 14:06 IWST

Public exposure to Indonesian Cement marathon (bj)
Public exposure to Indonesian Cement marathon (bj)

INDUSTRY.co.id - Semarang - PT Semen Indonesia (Persero) Tbk is optimistic to achieve cement production growth up to 4% compared to last year in line with Medium & Long Term Development Plan of 2015-2019 period, where the government is targeting the construction of new roads 2,650 km, toll roads 1,000 km and maintenance 46,770 km of road.

In addition, for aviation infrastructure, the government plans to build 15 new airports and airport development for Air Cargo service.

The government also plans to build 14 new industrial estates outside of Java and the development of industrial estates as industrial infrastructure in the Industrial Growth Center (WPPI).

This is expressed by Director of Production and Business Strategy of PT Semen Indonesia (Persero) Tbk Johan Samudra during Public Expose Marathon which was held today, Tuesday (22/8/2017) at Diponegoro University, Semarang.

Johan said the government is also encouraging the growth of the property sector, one of which is the provision of housing for the community, especially low income people.

"In order to support the plan, Semen Indonesia continues to expand to meet domestic market demand in order to maintain market share of approximately 41.7% of total national cement sales." In 2017, the Company targets cement production of 27.4 Million tons or an increase of 4% from the previous 26.36 million tons in 2016, "said Johan.

"Cement Indonesia has various competitive advantages in the competition of the national cement industry, among others: 4 Integrated Plant, 2 Grinding Plant, 24 Packing Plant, and supported by 30 buffer warehouses, and 12 special ports," he added.

To meet the growing demand for cement, Semen Indonesia is currently completing various strategic projects, including completion of Indarung VI Plant and Rembang Plant.

With the completion of the two factories, Semen Indonesia will get an additional capacity of 6 million tons of cement per year. In addition, the Company is also completing the construction of Grinding Plant in Banten, the construction of environmentally friendly thermal power plants in Tuban with a capacity of 30.6 MW. To support capacity building programs, Cement Indonesia will build new plants in Aceh and Kupang.

"In the first half of 2017, the Company recorded revenue of Rp 12.7 trillion or grew 2% from the previous year Rp 12.47 trillion (yoy). The Company's EBITDA stood at Rp 2.65 trillion, down from Rp 3.41 trillion (yoy). The company recorded a net profit of Rp 1.10 trillion or down from the previous Rp 1.99 trillion (yoy), "Johan added.

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