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AKARTA: State cement producer PT Semen Kupang will resume production after plantation company PT Sarana Agro Gemilang commits investment for the next ten years.

In the first phase, Sarana Agro will inject Rp 200 billion (US$19.8 million) into Semen Kupang, which has now been idle for one year.

"The money will be allocated for Semen Kupang's capital, recruitment of employees and factory revitalization," Semen Kupang president director Abdul Madjid Nampira told journalists on Monday, without elaborating on the total amount of the investment.

"The important thing is how to revive this company," he said, adding that after Semen Kupang resumed cement production by the end of this year, it will get only 7.5 percent in sales revenue, while the rest will be for Sarana Agro

Semen Kupang, which has a 300,000-ton cement capacity, plans to restructure its Rp 600 billion debts to state bank PT Bank Mandiri.

Bank Mandiri has a 38 percent stake in Semen Kupang, which was formerly a subsidiary of the country's largest cement maker PT Semen Gresik.