Foreign Investors Eyeing East Indonesian Cement Industry
6 October 2014 17:08 WIB
TEMPO.CO, Pangkajene - A number of foreign companies reportedly plans to build cement factories in eastern Indonesia. Andi Unggul Attas, president director of PT Semen Tonasa, said investors from China, Thailand, and Vietnam are targeting the eastern Indonesian market in regards to the ASEAN Economic Community in 2015.
"The level of cement demand in Indonesia is the highest in Southeast Asia, so naturally everyone has their eyes here," he said in Pangkajene, South Sulawesi, yesterday.
Semen Tonasa spokesman Fajar Sidik said that eastern Indonesia is a target because of its abundant source of limestone, the main substance for producing cement. Tonasa has 100,000 hectares of karst hills and four operating factories producing up to 5.98 million tons per year.
Agung Wiharto, corporate secretary of Perusahaan Semen Indonesia, confirmed that there are many foreign investors targeting the cement market in eastern Indonesia. They include Thailand's Siam Cement Group, Singapore's Wilmar Group, and China's Anhui Conch Cement Company Ltd. These companies, according to Agung, are eyeing markets in Papua to Kalimantan.
Anhui Conch investment plans emerged in 2011. The Chinese state-company is said to be preparing a mega investment of US$2.35 billion to build a cement factory in Kalimantan and West Papua. Anhui Conch's plan to build a factory in Maros regency, South Sulawesi, was rejected by local residents.
WURAGIL (PANGKEP) | SAID HELABY | JUMADI (MAROS) | ABDUL MALIK