The Bosowa Corporation is planning to invest around IDR3trn in its cement activities to gain a greater share of the thriving Indonesian market.
Speaking to the Jakarta Post, Bosowa CEO Erwin Aksa, said the company will spend a total of IDR10trn (US$1.06bn) by 2014 with a special focus on the cement and energy-related sectors. Next year, it plans to spend IDR6trn, half of which will be dedicated to increasing cement capacity.
“We will spend about IDR3bn on the cement sector and IDR3trn on power plant projects next year.” He added that around 30 per cent of the spending would be financed by internal cash and the remaining by bank loans.
Through its cement subsidiaries, PT Semen Bosowa Maros and Semen Bosowa Indonesia, the company is currently working on several development projects including a clinker plant in Maros, South Sulawesi as well as grinding plants in Cilegon, Banten; Sorong, West Papua and Amurang, North Sulawesi which are expected to be completed in 2014. The company is also waiting for the completion of a cement project?>n Banyuwangi in East Java before the end of the year.
“Our cement capacity will be doubled to up to 6Mt next year,” Erwin said. Bosowa currently has a total cement production of 3.2Mta.
