Chinese Factory in Aceh, A 'Nightmare for Cement Issuers

Not only does this venture potentially violate moratorium regulations, but it also raises fears of exacerbating the already challenging condition of cement oversupply in the country.

Dionisio Damara

2 Jun 2024 - 09.15
A-
A+
Chinese Factory in Aceh, A 'Nightmare for Cement Issuers

Illustration for cement industry./Special

Bisnis, JAKARTA — News regarding new cement factory by a Chinese consortium has sparked concerns among existing cement companies. Not only does this venture potentially violate moratorium regulations, but it also raises fears of exacerbating the already challenging condition of cement oversupply in the country.

Concerns arose following PT Kobexindo Cement, China-based Hongshi Holding Group consortium, signing a memorandum of understanding (MoU) with the South Aceh Regency Government for a new cement factory. The MoU, inked on May 18, 2024, in Jakarta, outlines plans for a factory projected to produce up to 6 million tons annually, requiring an estimated investment of IDR 10 trillion. This plan poses a risk of worsening the problem of oversupply in the cement industry.

The Indonesian Cement Association (ASI) observed that while domestic cement demand is estimated to reach 65.5 million tons in 2023, total production is expected to hit 119.9 million tons. This indicates an excess supply of cement amounting to 54.4 million tons.

President Director of PT Indocement Tunggal Prakarsa Tbk. (INTP) Christian Kartawijaya emphasized that there is no requirement for additional cement supplies in Aceh and Sumatra Island. Hence, the news of a new factory being established in Aceh came as a surprise.

Cek Berita dan Artikel yang lain di Google News dan WA Channel
Editor: Rinaldi Azka
Jelajahi peluang bisnis terpercaya dengan berlangganan
Temukan keleluasaan dan keuntungan maksimal dengan pilihan paket berlangganan eksklusif ini
BERLANGGANAN SEKARANG
Tidak Memerlukan Komitmen, Batalkan Kapan Saja
Penawaran terbatas. Ini adalah penawaran untuk Langganan Akses Digital Dasar. Metode pembayaran Anda secara otomatis akan ditagih di muka setiap empat minggu. Anda akan dikenai tarif penawaran perkenalan setiap empat minggu untuk periode perkenalan selama satu tahun, dan setelah itu akan dikenakan tarif standar setiap empat minggu hingga Anda membatalkan. Semua langganan diperpanjang secara otomatis. Anda bisa membatalkannya kapan saja. Pembatalan mulai berlaku pada awal siklus penagihan Anda berikutnya. Langganan Akses Digital Dasar tidak termasuk edisi. Pembatasan dan pajak lain mungkin berlaku. Penawaran dan harga dapat berubah tanpa pemberitahuan.
BIG MEDIA
Jalan K.H. Mas Mansyur No. 12AKaret Tengsin - Jakarta Pusat 10220
© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.
BIG MEDIA
Jalan K.H. Mas Mansyur No. 12AKaret Tengsin - Jakarta Pusat 10220
© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.