Indonesia Cement Association requested President Joko Widodo (Jokowi) to accelerate infrastructure development in order to boost cement demand. “We expect the infrastructure program to start in February or March, so that next year’s demand could rise 4.6 or even 8 percent,” Head of Indonesia Cement Association Widodo Santoso said after meeting President Jokowi in the palace on Thursday, October 15.
Widodo says infrastructure program has been considered slow in its implementation, whereas the infrastructure development in March may significantly boost cement demands.
In the meeting, the cement industry also mentioned a 2.8 percent increase in cement demand in September. Amid the economic slowdown, said Widodo, the production capacities have reached 78 million tons, while this year’s demand is just 65 million tons. “So the production capacity is 15 percent higher than the demand,” he said. Next year, the demand is expected to reach 71-72 million tons.
Industry Minister Saleh Husin says cement industry remains optimist amid economic condition that has not fully recovered. There will be three new additional factories operating for the remaining year with a production capacity of 7.7 million ton per year.
“In 2016, there will be several new factories operating with a total production capacity reaching 92 million tons,” said Minister Saleh.
President Jokowi met with the Cement Association accompanied by Industry Minister Saleh Husin.
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