Indonesia's cement producers have called upon the government to tighten its moratorium on the building of new cement plants in the country.
Indonesian Cement Association (ASI) Chairman, Lilik Unggul Raharjo, was quoted in Kontan: "At present, a moratorium is in place for the construction of new cement factories [...], but only for new investment recorded in the [Online Single Submission] system." However, in a statement published on 30 January, he said that a broader application of the policy was needed to safeguard the industry profit margin.
Indonesia's capacity utilisation dropped considerably during the COVID-19 pandemic when many construction projects were put on hold. Last year, it improved slightly to 56.6 per cent but remains stubbornly under the 65 per cent mark.
Taufiek Bawazier, director general of chemicals, pharmaceuticals and textiles at the Industry Ministry said that the government was still open to investment in the cement sector but only in regions that had no cement capacity.
Cement, Ceramics and Non-Metal Processing Director, Puts Nadi Astuti, said the moratorium for new investments in cement plants only applied to foreign investors, according to a report in the Jakarta Post. Regional restrictions existed for Sumatra, Java, Kalimantan and Sulawesi, but investment in Papua and Maluku were possible.
Meanwhile, the ASI chairman hoped that the moratorium would last for another decade, improving the sector's capacity utilisation rate by three per cent annually, until it reached a rate of 85 per cent.
