PT Semen Indonesia Tbk and PT Samana Citra Agung on 17 March signed agreement to set up a joint venture company, called PT Semen Indonesia Aceh, which will engage in producing and distributing cement.

The agreement was signed by president director of Semen Indonesia, Suparni, and president director of Samana Citra Agung, Deni Fahlevi in Jakarta. Samana Citra is based in Aceh, on the northern tip of Sumatera Island.

Both parties have agreed to invest a total of IDR5trn (US$383.3m) in establishing the new company and developing a new 3Mta cement plant in Aceh province, company officials said.

Suparni, said that the establishment of new JV firm is part of Semen Indonesia’s move to expand its capacity, in particular to meet growing demand for cement in Sumatera Island such as Aceh, North Sumatera, Riau and Riau Island provinces.