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Semen Indonesia Targeting Five Percent Growth This Year

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6 January 2017 07:42 WIB

Location for the new Semen Indonesia factory in Rembang, Central Java. Tempo/Budi Purwanto

TEMPO.CO, Jakarta - State-owned cement company PT Semen Indonesia (Persero) Tbk is aiming for 4 to 5 percent growth in 2017. The company will rely on its new plants to boost sales growth.

Semen Indonesia corporate secretary Agung Wiharto said that new plants will operate in Rembang in Central Java and Indarung VI in Padang, West Sumatra.

“If they go according to plan, we expect Semen Indonesia’s new plants in Rembang and Indarung can contribute [to push growth],” he said in Jakarta on Thursday, as quoted by Antara news agency.

He revealed that Semen Indonesia’s total cement capacity stands at 29 million tons per annum. Agung expects not to see decline in cement price this year. The company’s cement product is currently sold at around Rp800,000-Rp820,000 per ton.

As of November 2016, the company’s cement sales hit roughly 28-29 million tons. December’s sales number is expected to be similar to previous the month’s realization.

On problems faced by the company’s plant in Rembang, Central Java, Agung Wiharto said that Semen Indonesia had planned to buy raw material for cement manufacture from small-scale miners should the company fails to secure environmental permit.

ANTARA



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