Semen Indonesia outlines 2015 capex plans

PT Semen Indonesia Tbk has prepared capital expenditures worth IDR7-9trn (US$550m-706m), to fund new plants, upgrades and possibly further international expansion.

Of the total, around IDR5trn would be invested in the new plants in Rembang, Central Java, and Indarung, West Sumatra, the company’s finance director Ahyanizzaman told the Jakarta Post.  The new plant in Indarung was expected to start operating in the first half of next year, while the plant in Rembang was expected to begin operations by the end of next year, Ahyanizzaman explained. The two plants would add 6Mta to the firm's current output of around 31.8Mta, he said.

A further IDR1-2trn has been allocated to the upgrade of packing plants while a further IDR2trn could be spent on possible overseas expansion this year.

Ahyanizzaman further revealed that the company would use internal cash and a number of existing loans to finance the majority of its capex this year. However, the company may seek another source of funds, such as bonds, for its international expansion this year, he added

"We have completed the due diligence process with a number of potential investors in one or two Southeast Asian countries. We hope that we can eventually have a presence in those countries," he told the Jakarta Post without disclosing the name of the countries.