Investment in Cement Industry Forecast to Increase

TEMPO.CO, Jakarta - The Investment Coordinating Board (BKPM) predicted investment in cement industry would increase in 2015, with the implementation of the government's massive program ininfrastructure development.

"Cement consumption declined in the first quarter of 2015 , but with the start of work in government's priority projects especially infrastructureprojects, demand for cement is expected to rise sharply," BKPM chief Franky Sibarani said on Tuesday.

Franky was here visiting PT Cemindo Gemilang, a producer of the Red and White cement.

Based on data from the Indonesian Cement Association (ASI), the country's cement consumption fell 3.2 percent to 13.62 million tons in the first three months of the year from 14.08 million tons in the same period last year.

Franky attributed the decline in consumption in the first quarter of this to the fact that work had not started in the infrastructure projects.

Work is expected to start this month after disbursement of budget fund by the government.

"With the process of tenders had been wrapped up for a number ofgovernment's infrastructure projects in the second quarter, work is expected to start immediately.

Larger supply of cement is certainly needed. We, therefore, are optimisticcement consumption would rise soon this year," he said.

He said the condition is in line with the policy of President Joko Widodo who has announced the budget fund for infrastructure projects had been available for immediate disbursement.

Cement would be needed in large quantity for projects like toll roads, smelters, power generating plants and seaports all over the country, he said.

He said this year the time is right for implementation of the projects to be completed in two years to three years when more new power plants expected to come on stream.

"In the next two years we would have larger power supplying capacity for new industrial facilities," he said.

ANTARA