Semen Indonesia is seeking IDR600-IDR840bn(US$50-70m) in bank loans to help finance construction of a new cement plant in Jayapura, Papua, according to reports by the Jakarta Globe.

Indonesia's largest cement producer has recently announced its intention to construct the first cement plant in the country's most eastern-most province to meet the region's demand potential and reduce distribution and logistic costs.

“For the Papua plant, we will seek external funds like from loans on top of equity [injection],” Semen Indonesia finance director Ahyanizzaman told the daily newspaper.

He said the cement maker is still looking for some suitable land, and the bank loans are expected to be secured next year. Semen Indonesia is completing the feasibility study for the project which is slated to have a capacity of 0.6-1Mta. Construction is anticipated to start in 2015.