Indonesian Cement Association Proposes Moratorium on New Plant Construction Permit

By : Hariyanto And Aldi Firhand. A | Friday, August 25 2017 - 21:06 IWST

Illustration of cement industry. (Merdeka / Dwi Narwoko)
Illustration of cement industry. (Merdeka / Dwi Narwoko)

INDUSTRY.co.id - Jakarta - The Indonesian Cement Association (ASI) is responding to the higher supply surplus, reaching 106 million tons, exceeding domestic demand of only 63 million tons or only 60 percent. The installed capacity of existing manufacturers exceeded the demand for cement over the past two years.

ASI claimed to have proposed to the government to conduct a moratorium related to licensing the construction of new plants for cement companies this year. The goal, so that more optimal utilization.

"We have written to the government for a moratorium on new permits, but the factories that have already obtained permission will continue," said ASI Chairman Widodo Santoso in Jakarta, Thursday (8/24/2017).

According to him, this condition is the impact of many local entrepreneurs who scramble to expand in 2014. For information, at that time cement is still imported because of insufficient capacity. "Finally in 2015 many new cement plants are emerging to meet domestic demand," he continued.

The investment is excessive so that the growth of cement capacity is not directly proportional to the growth of consumption. Should, according to Widodo, investors need to take account of annual demand before developing capacity.

Domestic cement consumption in July 2017 amounted to 5.59 million tons, an increase of 54.5% on an annual basis or year on year (yoy). While in the previous month, cement consumption fell 26.8 percent to 3.73 million tons. For the period from January to July 2017, cement consumption was 34.6 million tons, up 4.4% on an annual basis.

Demand for cement, continued Widodo, rose on average by 5% or about 3 million tons. This creates a balance point between production capacity and new demand will be achieved within 10 years. In fact, in the year 2026 also according Widodo capacity will remain higher.

With this oversupply market condition, the price of cement has decreased every year from 8% to 10%. Prices have plummeted since the end of 2015.

News Comment

Today's Industry

Rena Chua, Bug Bounty Advisor at HackerOne (Photo by Linkedin)

Kamis, 06 Agustus 2020 - 18:15 WIB

Securing More with Less — How to Maximise Security Coverage while Reducing Costs Usings Hacker-Powered Security

Remember those days, pre-pandemic, when you thought your security scope was complex? But now, with employees working from home, new video and collaboration apps being rolled into daily workflows,…

Trisha Paine, Head of Cloud Marketing Programs, at Check Point Software Technologies

Kamis, 06 Agustus 2020 - 17:30 WIB

Striving to Achieve High Fidelity Cloud Security

Several attributes make posture management a particularly challenging component of maintaining cloud security. For starters, you cannot secure or scale a rapidly growing quantity and variety…

Luke Tucker, Senior Director of Community at HackerOne (Photo by Linkedin)

Rabu, 05 Agustus 2020 - 22:00 WIB

Security Engineers by Day, Hackers by Night – An Interview with Two of Singapore’s Top Ethical Hackers

Over the years, the perception of the term “hacker” has changed. Once seen as only criminals, there are now over 800,000 registered security professionals on HackerOne, the world’s trusted…

Patrick Carey, Director of Product Marketing, Synopsys (Photo by Linkedin)

Rabu, 05 Agustus 2020 - 21:45 WIB

Developers are Not Security Experts, but They can be with The Right Tools

Software has revolutionised the way in which we work, live and play. This is particularly true in the realm of software security, as development teams are releasing code faster than ever before.

Darrell Adams, Head of Southeast Asia & Oceania, Universal Robots (Photo by LinkedIn)

Rabu, 05 Agustus 2020 - 21:25 WIB

5 Reasons Why You Need Collaborative Automation For Today's World

The benefits of collaborative automation are undisputed – more profitability, productivity, flexibility, higher quality and even more employee satisfaction.