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Jakarta Post

ANALYSIS; Cement sector: Dancing on thin ice

  • Romauli Panggabean

Jakarta   /   Wed, May 18 2016   /  09:18 am

In 2015, Indonesia’s cement production was among the top eight in the world and was second in Southeast Asia after Vietnam. This fact is in line with the rapid investment from global giant cement corporations that invest in Indonesia and progressively increase production. Among the firms are Lafarge Holcim (Switzerland), Anhui Conch (China), CNBM (China) and Heidelberg Cement (Germany).

At the same time, large domestic players, such as Semen Indonesia and Semen Bosowa, are also following the trend and investing more on expansion of plants or clinker. It seems that all cement producers in Indonesia perceive the domestic market as a potential and highly attractive market due to increasing demand from the property and infrastructure sectors.

Therefore, to catch up with demand growth expectations, cement producers are boosting their production capacity through more capital i...