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No permits issued yet for Chinese cement factory in Aceh, minister says
The minister did not specify whether the government would approve or reject the proposal from the Chinese investors to erect its cement factory.
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All set: Then state-owned enterprises (SOEs) minister Rini M.Soemarno visits a cement factory belonging to state cement maker PT Semen Indonesia in Rembang, Central Java, on March 17, 2017. (JP/Suherdjoko)
T
he government has not issued any permits for a Chinese company to build a cement factory in Aceh, Investment Minister Bahlil Lahadalia claimed on Wednesday.
However, the minister did not specify whether the government would approve or reject a proposal from the Chinese investors to erect its cement factory.
“There have been no permits issued yet because currently there’s a moratorium to build new cement factories,” Bahlil said, as quoted from Kumparan.
Bahlil said that a nationwide moratorium had remained in place since 2020 because the country was facing an oversupply of cement in the domestic market with local demand hovering at 65.5 million tonnes a year, far less than the annual output of 119.9 million tonnes.
However, the moratorium excludes regions in Papua, West Papua, Maluku and North Maluku.
“We’ve had an oversupply of cement by 40 million tonnes since 2021, and there has been a moratorium on cement factories until now,” he said.
Read also: Chinese-owned firm to build cement plant in Aceh despite moratorium
