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Semen Indonesia plans to construct a new cement plant in Papua

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World Cement,

According to local press reports, PT Semen Indonesia is investigating the possibility of constructing a new cement plant in the province of Papua, Indonesia, at a cost of around IDR1.2 trillion (US$100.6 million).

The production facility would be located in Jayapura, Papua’s provincial capital, or Manokwari, the largest city and capital of the province of West Papua. Both cities are situated in close proximity to a limestone quarry. Dwi Soetjipto, President and Director of Semen Indonesia, stated that once initial studies were complete, the company would work on including the investment for the plant in next year’s capex budget. The facility, which, if realised, will take around three years to construct, is expected to have an output of approximately 600 000 t in its initial development phase, and could require investment of around US$200 – 250 per tonne.

The plans for the new plant form part of the company’s efforts to strengthen its market share in eastern Indonesia. As a result of planned infrastructure projects, demand for cement in Papua is expected to increase. Construction of the production facility would allow the company to better meet the region’s demand and could result in Semen Indonesia increasing its market share from around 50% to 70%.

Edited from various sources by Rosalie Starling


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