Semen Indonesia gears up for further expansion

Semen Indonesia is lining up investments that could hit the IDR20trn (US$2bn) mark over the next three years to further increase capacity and boost operations.

“We’re thinking ahead, so we can continue to increase our cement production and performance. Our investment into 2016 could reach IDR20trn in total.” Semen Indonesia’s finance director told the Jakarta Globe.

Ahyanizzaman said the funding will be prepared and invested in stages. This year, the state-owned enterprise has set aside IDR2trn in funds. For 2014 and 2015, investment could exceed IDR6trn per year, while the 2016 budget is estimated to be more than IDR4trn, he said.

Additional estimated capacity from two new plants currently under planning is 3Mt. The tender process for a new factory in Rembang, Central Java, is underway, with construction to begin in September or October and completed by 2016. The company plans to start work on a plant in Indarung, West Sumatra, in 2015 and for it to come online in 2017.

Furthermore, Semen Indonesia plans to further increase output at existing plants in Gresik and Tuban in East Java and Tonasa in South Sulawesi in the future.