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Now, Here's Southeast Asia's Largest Cement Producer

Now, Here's Southeast Asia's Largest Cement Producer

Indonesia's biggest cement maker Semen Indonesia is buying the local business of Swiss company LafargeHolcim for roughly $917 million, in a move that will consolidate the struggling Indonesian industry.

"The acquisition will provide it with a significantly larger capacity and broader product portfolio and geographical footprint," the state-owned cement maker said in a statement on Tuesday, adding that the move would enable it to fully capitalise on growth opportunities in its home market.

LafargeHolcim, the world's largest cement maker, said in a separate statement that it was selling its Indonesian business to Semen Indonesia as it reviews its portfolio to improve its financial strength.

Acquiring Indonesia's third-largest cement company will provide the state-owned cement maker with four cement plants with a capacity of 14.8 metric tonnes per annum and 30 ready-mix plants, Semen Indonesia said. 

State-owned cement producer PT Semen Indonesia (SI) president director Hendi Prio Santoso says the company will be able to produce 53 million tons of cement following the company’s acquisition of PT Holcim Indonesia.

“Semen Indonesia alone controls 40 percent of the cement market in Indonesia, while Holcim controls 15 percent of the market. It means that we will control 55 percent of the domestic market,” he said as reported by The Jakarta Post. 

Hendi said the company had anticipated an increase in the demand for cement ahead of the acquisition.  

SI corporate secretary Agung Wiharto said there were 15 cement producers in the country with total installed capacity of 107 million tons, while domestic consumption reached 66.5 million tons.

Market demand increased to 70 million tons in 2017, meaning that the gap reached 37 million tons, he added.

Agung estimated that supply and demand would balance out in 2027, with an estimation of 7 percent annual growth in demand. He added that SI sales had grown 5 percent from January to September, while the company’s capacity utilization had reached 90 percent.

“Without any additional capacity, Semen Indonesia could do nothing to fulfill the increase in market demand,” Agung added. 

Source : Nikkei Asian Review | The Jakarta Post

 

Akhyari Hananto

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to More understand it. My banking career continued in Yogyakarta when I joined in a program funded by the Asian Development Bank (ADB),as the coordinator for a program aimed to help improve the quality of learning and teaching process in private universities in Yogyakarta. When the earthquake stroke Yogyakarta, I chose to join an international NGO working in the area of ?disaster response and management, which allows me to help rebuild the city, as well as other disaster-stricken area in Indonesia. I went on to become the coordinator for emergency response in the Asia Pacific region. Then I was assigned for 1 year in Cambodia, as a country coordinator mostly to deliver developmental programs (water and sanitation, education, livelihood). In 2009, he continued his career as a protocol and HR officer at the U.S. Consulate General in Surabaya, and two years later I joined the Political and Economic Section until now, where i have to deal with extensive range of people and government officials, as well as private and government institution troughout eastern Indonesia. I am the founder and Editor-in-Chief in Good News From Indonesia (GNFI), a growing and influential social media movement, and was selected as one of The Most Influential Netizen 2011 by The Marketeers magazine. I also wrote a book on "Fundamentals of Disaster Management in 2007"?, "Good News From Indonesia : Beragam Prestasi Anak Bangsa di dunia"? which was luanched in August 2013, and "Indonesia Bersyukur"? which is launched in Sept 2013. In 2014, 3 books were released in which i was one of the writer; "Indonesia Pelangi Dunia"?, "Indonesia The Untold Stories"? and "Growing! Meretas Jalan Kejayaan" I give lectures to students in lectures nationwide, sharing on full range of issues, from economy, to diplomacy Less
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