Ministry Projects 10% Growth in Cement Industry

TEMPO.CO, Jakarta - The Ministry of Industry estimates that the cement industry growth this year could reach 10 percent. The many number of government infrastructure projects is expected to boost the demand for cement in the country.

Toeti Rahajoe, the ministry's director of downstream chemical industry, yesterday said that the industry's growth will also be driven by the increasing demand from the ceramics industry and the project development of the private sector.

However, Chairman of the Indonesian Cement Association, Widodo Santoso, said the industry will only grow by around seven percent this year, provided the government realizes the Rp1,100 trillion worth of infrastructure projects. "If not, the growth would stay at three to four percent," he told Tempo on Tuesday.

According to Widodo, the national cement demand and supply will start becoming even in 2019. Next year, there will be additional supplies from several new plants amounting to 10 million ton.

President Joko Widodo last month announced the sales price cut of SOE produced cement by Rp3,000 per sack. However, the price reduction is not expected to affect the property and infrastructure sectors instantly. Eddy Hussy, chairman of Real Estate Indonesia, said an adjustment will happen after 3-6 months, depending on the project contract.

AMIRULLAH | ANDRI EL FARUQI (PADANG)