Cement industry starts expansion.Backgrounds
The improvement in the country's economic condition in 2010 has boosted development of the country's cement cement, binding material used in construction and engineering, often called hydraulic cement, typically made by heating a mixture of limestone and clay until it almost fuses and then grinding it to a fine powder. industry. Work in a number of infrastructure and property projects, shelved earlier, has been resumed. The residential building projects have been the largest consumer of cement in the country. Many people build and renovate houses with the improvement in the people's welfare.
In 2009, cement industry suffered a setback setback
In architecture, a steplike recession in the profile of a high-rise building. Usually dictated by building codes to allow sunlight to reach streets and lower floors, the building must take another step back from the street for every specified added height interval. . Demand for cement was weak amid the global slump Slump
A temporary fall in performance, often describing consistently falling security prices for several weeks or months. followed the crisis late 2008. It was shown in the cement production that shrank shrank
A past tense of shrink.
a past tense of shrink
shrank shrink 3.6% to 36.9 million tons in 2009 from 38.3 million tons in the previous year despite an increase in production capacity. The country's cement production capacity was 47.9 million tons per year in 2009, up 9% from 44 million tons in 2008. The cement industry, therefore, had large idle capacity in 2009.
In 2010, demand for cement grew fast and many factories have operated almost at full capacity. Many producers, therefore, plans expansion. Meanwhile, PT Semen semen
or seminal fluid
Whitish viscous fluid emitted from the male reproductive tract that contains sperm and liquids (seminal plasma) that help keep them viable. Andalas has resumed operation in Aceh since September September: see month. 2010, after being out of business when its factory was destroyed by tsunami that devastated dev·as·tate
tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates
1. To lay waste; destroy.
2. To overwhelm; confound; stun: was devastated by the rude remark. Aceh late 2004. The operation of PT Andalas, which is owned by France's cement giant Lafarge brought the country's total production capacity to around 50.8 million tons in 2010..
The capacity expansion by cement industry is planned to keep pace with growing demand that follows the country's economic growth. In addition, replacement of old factories is needed as they are no longer efficient. It would not be easy for small capacity producers to compete in the market especially with the increase in production cost with the higher fuel cost. The prices of coal as the main fuel for cement factories have increased to follow the rise in the oil prices.
Small players like Semen Kupang Kupang is the provincial capital of East Nusa Tenggara, Indonesia. The city is located in West Timor, at , and has a population of about 450,000. , Semen Baturaja, and Semen Bosowa could not take full advantage of the rise in cement demand. There are a number of hurdles that keep them out of contention such as locations being tool far from potential markets--Java, Sumatra Sumatra (smä`trə), island (1990 pop. 36,471,731), c.183,000 sq mi (473,970 sq km), Indonesia, in the Indian Ocean along the equator, S and W of the Malay Peninsula (from which it and Sulawesi Sulawesi (s'läwā`sē), formerly Celebes (sĕl`əbēz), island (1990 pop. 12,511,163), c. and difficulty in transport.
The availability of energy is a vital factor in the development of cement industry. Modernization modernization
Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, and modification of factories are made using energy saving machines and to use secondary energy.
The availability and prices of coal are among important factors determining plan for capacity expansion as fuel cost is a major element of production cost. A number of cement producers, planning capacity expansion have to carry out studies to ascertain that coal supply is well secured. The certainty of supply is important as high coal prices in international market may result in more coal exported causing shortage on the domestic market.
Types of cement produced
There are a number of types of cement produced in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. . The main type is OPC (1) (OpenGL Performance Characterization) A project group within GPC that manages OpenGL benchmarks. OPC endorses the Viewperf and GLperf benchmarks. Viewperf was created by IBM and OPC provides viewsets for it, which are combinations of tests using specific (Ordinary Portland cement portland cement
Binding agent of present-day concrete. It is a finely ground powder made by burning and grinding a limestone mixed with clay or shale. Its inventor, Joseph Aspdin (1799–1855), patented the process in 1824, naming the material for its resemblance to the ) or Portland Cement Type I which accounts for 80% of the country's total production. Another main type is composite cement. Other types are produced in small quantity.
Production capacity expands 9%
In the past several years, the country's cement production capacity has remained unchanged. Capacity expansion began only in 2002 for clinker--from 43,780,000 tons to 44,425,000 tons a year or an increase of 1.5% and for cement--to 47,490,000 tons from 47,140,000 or an increase of 0.7%.
However, in 2005 and 2006, the cement production capacity fell as one of the major producers PT. Semen Andalas stopped operation as its factory was destroyed by tsunami late 2004. In addition some old factories were out of function such as those of PT. Semen Padang Padang (pädäng`), city (1990 pop. 631,263), capital of Sumatra Barat prov., on W Sumatra, Indonesia, on the Indian Ocean at the mouth of the small Padang River. with capacity of 100,000 tons/year of clinker clink·er
1. The incombustible residue, fused into an irregular lump, that remains after the combustion of coal.
2. A partially vitrified brick or a mass of bricks fused together.
3. and 200,000 tons/year of cement; PT. Semen Gresik Gresik is the capital of the sub-region of Gerbangkartasusilo, East Java, Indonesia. History
The port of Gresik has been an important commercial center since the eleventh century, trading with merchants from as far away as China, India, and Arabia. with a capacity of 800,000 tons/year of clinker; PT. Semen Tonasa with a capacity of 60,000 tons/year of clinker; and PT. Holcim Indonesia with a capacity of 1 million tons/year of clinker and 1 million tons of cement per year.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. ASI ASI,
n See Anxiety Sensitivity Index. , until 2008, the country's cement production capacity remained unchanged at 44,890,000 tons per year, as there was no producers expanded their capacity or build new factories. In 2009, the country's installed capacity rose 9% to 47.9 million tons per year.
Capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. was 76%. Based on production capacity, private cement companies are larger than state cement companies. Private companies account for 60% of the country's total production capacity with state companies for 40%.
In 2010, the country's production capacity is expected to increase by 2.9 million tons to 50.8 million tons per year. The additional capacity is contributed by five producers, which will invest around US$ 645.6 million for capacity expansion. A new cement mill A cement mill (or finish mill in North American usage) is the equipment used to grind the hard, nodular clinker from the cement kiln into the fine grey powder that is cement. Most cement is currently ground in ball mills. with a capacity of 1.5 million tons of Indocement is already operational in Cirebon. A new factory with a capacity of 1.6 million tons is being built in Aceh by PT Semen Andalas to replace its old factory destroyed by Tsunami late 2004.
PT. Semen Gresik, Tbk (PT. SG)
PT. SG has three factories located in Tuban and Gresik, East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. with a total production capacity 8.5 million tons per year. PT. SG has two cement special ports in the two cities, one cement packaging plant in Ciwandan, Banten and 11 units of buffer buffer, solution that can keep its relative acidity or alkalinity constant, i.e., keep its pH constant, despite the addition of strong acids or strong bases. warehouses in various areas Java and Bali.
On 15 September 1995, PT. SG took over both PT. Semen Padang (SP) and PT. Semen Tonasa (ST) and became its subsidiaries with 99.9% stake.
PT SP in Padang, West Sumatra West Sumatra (Indonesian: Sumatera Barat, abbreviated to Sumbar) is a province of Indonesia. It lies on the west coast of the island Sumatra, and borders the provinces of North Sumatra (Sumatera Utara) to the north, Riau and Jambi to the east, and , is strategically located to supply market in Sumatra. It is the largest supplier of cement for Sumatra. Part of its production is also sent to Java. It also exports part of its production. It has 6 units of packaging plant to support cement distribution in Padang, Medan, Banda Aceh, Batam, Jakarta and Banten. SP also have 14 units of buffer warehouses and cement special port in Teluk Bayur Teluk Bayur (Minangkabau: Taluak Bayua) formerly known as Emma Haven or Emmahaven is a port located in Bayur Bay of Padang city, West Sumatra, Indonesia. , and Ciwandan of Banten.
The types of cement produced by SP are Ordinary Portland Cement (OPC), Portland Pozzoloan Cement (PPC See Pocket PC, PowerPC and pay-per-click.
PPC - PowerPC ), Portland Composite Cement (PCC), Oil well Cement (OC) and Super Masonry Cement masonry cement
Cement used in the mortar of block and brick masonry. (SMC SMC Saint Mary's College
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SMC Solaris Management Console
SMC Smooth Muscle Cell
SMC Small Magellanic Cloud (also see LMC)
SMC Safety Management Certificate (maritime shipping) ).
In 2009, cement production of SP totaled 5.4 million tons down 8.1% from 5.8 million tons in 2008. The decline was a result of major earthquake that rocked Padang in 2009.
PT Semen Tonasa (ST) in Pangkep, South Sulawesi South Sulawesi is a province of Indonesia, located on the western southern peninsula of Sulawesi island. The province is bordered by Central Sulawesi province to the north, South East Sulawesi province to the east and West Sulawesi province to the west (West Sulawesi province was has three factories producing the types of OPC and PPC. ST is the largest supplier of cement for eastern Indonesia including Sulawesi, Kalimantan and Nusa Tenggara. PT ST has 8 units of cement packaging plant in Makassar, Bitung, Samarinda, Palu, Banjarmasin, Ambon Ambon (äm`bōn), island, c.300 sq mi (775 sq km), E Indonesia, one of the Moluccas, in the Banda Sea. It is mountainous, well watered, and fertile. Corn and sago are produced, and hunting and fishing supplement the diet. and Bali and 5 buffer warehouses. It also has special port to facilitate shipments of its production in Biringkassi.
Currently the SG group has a total production capacity of 19 million tons per year including 9 million tons of PT. Semen Gresik, 5.9 million tons of PT. Semen Padang and 4.1 million tons of PT. Semen Tonasa.
SGG SGG Synthetic Greenhouse Gas
SGG Superconducting Gravity Gradiometer
SGG Sialosyl Galactosyl Globoside
SGG Snow Gum Group (Australian project management consultant) has planned to build 2 new factories each with a capacity 2.5 million tons in Java and Sulawesi. The new factories are expected to come on line in 2012 bringing the production capacity of SGG to 23.9 million tons. Originally SGG planned to build 10 units of coal-fired power plant with a total capacity of 410 megawatts. Construction of the facilities is estimated to cost US$573 million to be operational in 2011. The facilities were to be built to supply power for the
Tuban factories with a capacity of 2 x 65 MW; for the Indarung factories in West Sumatra 3 x 35 MW, for Tonasa factories in Sulawesi 1x35 MW, for new cement factories in Java 2x32MW and for a new cement factory in Sulawesi 2x35 MW).
However, later the company decided to build only two more urgent power plants with a total capacity of only 2x35 MW to cost US$ 114 million in Sulawesi. In 2009, PT. Semen Tonasa secured a loan of Rp 3.5 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.
(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.
In the USA and Canada, 10^12. from syndicate Syndicate
organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018]
See : Gangsterism of state banks to build the power plants.
SG also plans to build 4 units of packing plant packing plant
a complete meat production unit including facilities for slaughtering animals, processing of meat and offal, boning out, making up of blocks of carcasses, chilling, freezing, storing of the meat, preparation of by-products. to cost around Rp600 billion internally financed. The plants will be built in Sorong of Papua, Pontianak of West Kalimantan West Kalimantan (Indonesian: Kalimantan Barat often abbreviated to Kalbar) is a province of Indonesia. It is one of four Indonesian provinces in Kalimantan, the Indonesian part of the island of Borneo. Its capital city Pontianak is located right on the Equator line. , East Kalimanatan and Banyuwangi of East Java to facilitate cement distribution.
The company also plans to build a cement plant in Papua if the market expands warrant investment in factory. In 2010, SG sets aside USS USS
1. United States Senate
2. United States ship
USS abbr (= United States Ship) → Namensteil von Schiffen der Kriegsmarine 402 million for capital expenditure. Part or US$ 264 million of the fund would be used to finance the construction of new cement factories . The company allocates US$ 1.26 billion for capital spending capital spending
Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . For the 2008--2014 period.
The business lines of the SGG quite vary . In addition to cement production by PT. Semen Gresik Tbk, PT. Semen Padang and PT. Semen Tonasa; and cement packaging by PT. Industri Kemasan Semen Gresik, the group has business in industrial estate by PT. Kawasan Industri Gresik; limestone limestone, sedimentary rock wholly or in large part composed of calcium carbonate. It is ordinarily white but may be colored by impurities, iron oxide making it brown, yellow, or red and carbon making it blue, black, or gray. The texture varies from coarse to fine. mining by PT. United Tractors Semen Gresik; steel fabrication fabrication (fab´rikā´shn),
n the construction or making of a restoration. , civil contracting service by PT. Swadaya Graha; general transport service, general trading, inter-island trade, business agency and good distribution under PT. Varia var·i·a
A miscellany, especially of literary works.
[Latin, from neuter pl. of varius, various.] Usaha; and asbestos asbestos, mineral
asbestos, common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire. and building material production and casting industry by PT. Eternit Gresik.
Cemex sells stake to Blue Valley Pte. Ltd.
Dispute over share ownership in PT SG between the government and CEMEX ended with the Mexican cement giant selling its 24.9% stake to the Rajawali Group through an investment vehicle company Blue Valley Pte. Ltd. at a price of US$ 337 million .
The Rajawali Group, which is controlled by Peter Sondakh, acquired the stake after the government decided not exercises its rights to buy back the stake from Cemex. Under conditional sale conditional sale n. a sale of property or goods which will be completed if certain conditions are met (as agreed) by one or both parties to the transaction. Example: Hotrod agrees to buy Tappit's 1939 LaSalle for $1,000 cash if Tappit can get the car running by and purchase agreement in Sept. 1998, the government was the first party to receive any offer by Cemex to sell its stake. Offer could be made to other buyers if the government decided not to buy the stake. Cemex also agreed to drop its legal suit against the government filed earlier with an international arbitration International arbitration is the established method today for resolving disputes between parties to international commercial agreements. As with arbitration generally, it is a creature of contract, i.e. body.
Cemex acquired the stake from the government in Sept. 1998 at a price of US$ 1.38 per share and sold it to the Rajawali Group with a profit margin of US$ 0.9 per share.
Currently, PT. SG is 51.01% owned by the government 24.9% by Blue Valley Hodings, Pte and 24.09% by investing public.
PT Holcim Indonesia Tbk
PT. Holcim Indonesia Tbk (HI) was formerly known with the name of PT. Semen Cibinong. Holcim Ltd, Swiss-based cement giant, acquired 77.33% of PT. Semen Cibinong in 2001. The name was changed on 1 January 2006. HI has two factories--in Narogong and in Cilacap.
Holcim Ltd, the world largest cement producer, has interests in cement companies in 70 countries in the world.
In 2009, the cement production capacity of PT Holcim was 8.3 million tons. Its production that year was 7.2 million tons, with around 64% disposed dis·pose
v. dis·posed, dis·pos·ing, dis·pos·es
1. To place or set in a particular order; arrange.
2. of on the domestic market and the rest exported.
In October 2010, HI started construction of a new factory in Tuban, East Java, after being delayed in 2009 as a result of the global financial crisis. The new factory will have a production capacity of 1.7 million tons per year built with a cost of US$ 450 million.
PT. Indocement Tunggal Prakarsa, Tbk (PT. ITP ITP - Intent to Package )
PT. ITP was established by the Salim Group The Salim Group is Indonesia's biggest conglomerate with assets including Indofood Sukses Mamur, the world's largest instant noodle producer, and Bogasari, a large flour-milling operation . The group was founded by Sudono Salim. in 1985. In 2001, it was acquired by Heidelberg Cement Group, another world's cement giant from Germany.
Heidelberger acquired 65.14% of ITP through subsidiary Kimmeridge Enterprise Pte. Ltd. In 2003, Kimmeridge Enterprise Pte. Ltd transferred the shares of PT. ITP to HC Indocement GmbH. In September 2006, HC Indocement GmbH was merged with Heidelberg Cement South-East Asia South-East Asia n → le Sud-Est asiatique
South-East Asia south n → Südostasien nt
South-East Asia n → GmbH , which became the direct owner of PT. ITP.
ITP operates 9 cement factories in Citeureup, Bogor, the second largest cement factory complex in the world, and two units in Palimanan, Cirebon of West Java and one 1 unit in Tarjun, Kotabaru of South Kalimantan South Kalimantan (Indonesian: Kalimantan Selatan often abbreviated to Kalsel) is a province of Indonesia. It is one of four Indonesian provinces in Kalimantan - the Indonesian part of the island of Borneo. The provincial capital is Banjarmasin. . ITP produces various types of cement including PCC, OPC, OWC OWC Officers' Wives' Club
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OWC Owner Will Carry (real estate owner will carry mortgage) and White Cement. ITP is the only producer of white cement in the country.
In 2009, ITP's production capacity for clinker is 15.6 million tons per year and its production capacity for cement is 17.1 million tons per year. Early 2010, a new cement plant of the company came on stream bringing its total production capacity to 18.6 million tons per year, making it the second largest cement maker after Semen Gresik Group in the country.
In 2007, ITP acquired PT. Gunung Tua Mandiri in Bogor, an aggregate producer with a capacity of 1.5 million tons per year and a reserve of 20 million tons. Later in 2009, PT. Mandiri Sejahtera Sentra a subsidiary of ITP, acquired an aggregate miner in Purwakarta, West Java . The aggregate company had a capacity of 0.5 million tons per year with a reserve of 95 million tons.
On 2009, ITP also acquired PT. Bahana Indonor, a shipping company having two vessels--the MV Tiga Roda, a cement carrier with a capacity of 10,000 DWT DWT
1. deadweight tonnage
2. deadweight tons and the MV Quantum One, floating terminal with a capacity of 8,000 tons for loading cement in packages or in bulk.
Meanwhile, Heidelberg Cement AG transferred its entire shares in ITP to Birchwood birchwood
a wood whose shavings are favored in Europe for the smoking of meats. Omnia Ltd in 2008. ITP, therefore, is 51% owned by Birchwood Omnia Ltd, 13.03% by PT. Mekar Perkasa and 35.97% by investing public.
PT Semen Andalas Indonesia
The old factory of PT. SA was destroyed by tsunami in 2004. In 2007, the company started to rebuild a new factory which came on line in 2010 with an annual production capacity of 3.1 million tons.
Meanwhile, the company imported cement from Malaysia supplied by a unit of Lafarge, which is the owner of PT. SA to be sold in the country especially in northern part of Sumatra , the market area for cement produced by the defunct DEFUNCT. A term used for one that is deceased or dead. In some acts of assembly in Pennsylvania, such deceased person is called a decedent. (q.v.) factory.
In 2010, PT. SA began the operation of a new factory replacing the old one destroyed by tsunami.
PT Semen Bosowa Maros (PT. SBM SBM - Solution Based Modelling )
Construction of the factory began in 1995 and started operation in April 1999. PT. SBM is owned by Aksa Mahmud.
In 2007, PT. SBM finished the construction of a packaging plant in Samarinda, East Kalimantan East Kalimantan (Indonesian: Kalimantan Timur abbrv. Kaltim) is Indonesian province on the east of Borneo island. The resource-rich province has two major cities, Samarinda (the capital and a center for timber product) and Balikpapan (a petroleum center with oil .
In 2009 , its clinker production capacity rose to 1.8 million tons per year from 1.71 million tons in the previous year. Its cement production capacity rose to 3 million tons per year from 1.8 million tons in the previous year.
The cement production of PT. BSM BSM Business Service Management
BSM Basic Security Module
BSM Best Stations Memory (Pioneer car stereos)
BSM Business Systems Modernization
BSM Bronze Star Medal
BSM Black Student Movement
BSM Benilde-St. is distributed mainly for eastern regions of Indonesia.
PT Semen Kupang (PT. SK)
PT. SK is a state company coming on line in 1984 in Kupang, East Nusa Tenggara East Nusa Tenggara (Indonesian: Nusa Tenggara Timur) is a province of Indonesia, located in the eastern portion of the Lesser Sunda Islands, including West Timor. The provincial capital is Kupang, located on West Timor. . In 2009 , its production capacity is 300,000 tons for clinker per year, and 570,000 tons for cement per year. PT. SK is wholly owned by the government.
PT. SK has been outdated out·dat·ed
old-fashioned or obsolete
Adj. 1. in technology, therefore, it is no longer competitive. Its first unit has long been out of function. Its second unit, therefore, was built but later the company was beset be·set
tr.v. be·set, be·set·ting, be·sets
1. To attack from all sides.
2. To trouble persistently; harass. See Synonyms at attack.
3. by difficulty in securing spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used.
Spare parts are also called “spares. for the factory and coal fuel which had to be imported from Vietnam.
The difficulty led to financial problem and stoppage stoppage - /sto'p*j/ Extreme lossage that renders something (usually something vital) completely unusable. "The recent system stoppage was caused by a fried transformer." of operation. Late 2007, it managed to resume operation after receiving capital injection of Rp 50 billion from the state budget. The fund was used as a working capital to procure To cause something to happen; to find and obtain something or someone.
Procure refers to commencing a proceeding; bringing about a result; persuading, inducing, or causing a person to do a particular act; obtaining possession or control over an item; or making a person spare parts and coal from Kalimantan.
Cement produced by PT. SK was for distribution in East Nusa Tenggara, which needed around 360,000 tons of cement in 2007.
PT Semen Baturaja (PT. SB)
PT. SB is wholly owned by the government. His factory which is located in Kota Baturaja, South Sumatra South Sumatra or Sumatera Selatan is a province of Indonesia. It is on the island of Sumatra, and borders the provinces of Lampung to the south, Bengkulu to the west, and Jambi to the north. has three cement packaging plants in Ogan Komering Ulu (OKU OKU Omicron Kappa Upsilon (National Dental Honor Society) ), Tarahan of Lampung, and Kertapati of Palembang.
In 2009, the cement production capacity of PT. SB was 1.2 million tons per year for clinker and 1.2 million tons of cement per year .
PT. SB produces Portland cement of type I using the brand of Semen Tiga Gajah. Its basic material is supplied form its limestone mines in that area. Ots marketing areas cover only southern Sumatra including Lampung, Jambi and Bengkulu and Banten in Java.
In 2013, SB plans to float 30% of its shares in an initial public offering hoping to raise Rp1 trillion in fresh funds. He fund is to be use to build a new factory South Sumatra with a production capacity of 1.5 million tons per year. With the factory, the company hopes to be able to maintain its 29% shares of its traditional markets. The new factory is estimated to need an investment of Rp 2.35 trillion including Rp 2.3 trillion in loan.
The company also plans to build a new cement mill with a capacity of 300,000 tons per year and investment of Rp 325 billion. The factory is to be build near the Baturaja unit to be operational in 2011.
Aspect of energy
Cement industry needs large supply of energy for the process of production. Energy accounts for 40%-50% of production cost. Most cement factories in the country use coal as a source of energy. Therefore, cement industry's coal requirement has increased from year to year. Lately there are cement factories using other fuels like oil palm fruit shell or straw straw, dried stalks of threshed grains, especially wheat, barley, oats, and rye. It has been used from antiquity for bedding, covering floors, and thatching roofs, as fodder and litter for animals, and in weaving such articles as mats, screens, baskets, ornaments and as an alternative to coal.
In 2008, coal requirement of cement industry reached 6 million tons, up to 7 million tons in 2009. A number of cement factories have expanded capacity since 2008. PT Semen Andalas Indonesia with a capacity of 1.8 million tons per year started operation in 2010; The Batam branch of PT Semen Bosowa Maros and PT Indocement Tunggal Prakarsa each expanded their capacity by 1 million tons. The capacity expansion of 3.8 million tons was completed in 2010.
In 2010 , coal supplied to cement industry is estimated to reach 7.6 million tons. The requirement is expected to continue to scale up in the coming years to follow the expansion of production capacity. In 2010, there are five producers PT. Semen Andalas Indonesia, PT Semen Padang, PT Indocement Tunggal Prakarsa Tbk, PT Semen Gresik and PT Semen Tonasa planning capacity expansion and build new factories with a total investment of US$645.6 million all to be completed in 2012.
Most of the new factories to be built for the capacity expansion are outside Java, whereas, the existing power generating plants outside Java are not enough to meet even the present power requirement. Cement producers, therefore, need to build heir own power plants each with a capacity of at least 2x30 MW.
SGG, for example, will need coal for 10 power generating capacity with a total capacity of 410 MW to be operational in 2011. The power plants will be needed to support its capacity expansion program until 2012. In 2012, SGG's production capacity is to be increased to 23.9 million tons.
In 2009, SGG's coal requirement totaled 3.1 million tons, down from 3.2 million tons in 2008 thanks to improvement of efficiency in the process of production.
In long term, the country's cement industry will increase its power generating capacity to 200 MW to support capacity expansion by 14.5 million tons, from 44.89 million tons to 59.39 million tons in 2015.
Indonesia has large coal reserves, therefore, the country's cement industry is not expected to experience shortage in coal supply. In 2009, the country's coal production totaled 226 million tons, and 156 million tons of which were exported with domestic consumption totaling 69 million tons. In 2010, the production is predicted to rise to 250 million tons. High price of coal in international market, however, could result in shortage in supply in the country unless the government regulates exports to guarantee domestic supply.
Cement Production in 2009 totaled 36.9 million tons
The country's cement production has continued to scale from year to year to reach 38.3 million tons in 2008, up from 35 million tons in the previous year. The surge in production was boosted by strong demand from infrastructure and property projects.
However, in 2009, production fell 3.6% to 36.9 million tons as a result of the financial crisis that began late 2008. Many infrastructure and property projects were shelved. Banks thought twice before extending new credits amid the great uncertainty. Without banking support few large projects could be implemented.
Slump hit not only domestic market but also international market even the impact of the global; crisis was worse in international market. Indonesia has exported cement to various countries such as Sri Lanka Sri Lanka (srē läng`kə) [Sinhalese,=resplendent land], formerly Ceylon, ancient Taprobane, officially Democratic Socialist Republic of Sri Lanka, island republic (2005 est. pop. , Morocco Morocco, country, Africa
Morocco (mərŏk`ō), officially Kingdom of Morocco, kingdom (2005 est. pop. 32,726,000), 171,834 sq mi (445,050 sq km), NW Africa. , Madagascar and Middle east countries. In Middle East Indonesia competes sharply against Thailand.
In 2010, the country's cement production is predicted to rise to 38.6 million tons. The increase followed the improvement of the country's economic condition. Many large infrastructure and property projects, shelved earlier, were rescheduled and built.
Production per company
In 2009, most producers slowed down operation on weak demand amid the global financial crisis.
The cement production of ITP totaled 11,531,000 tons or down 5.8% from 12,243,000 tons from the previous year. Its cement exports also fell to 1.6 million tons from 2.3 million tons in 2008 on weak demand in the world market. Its market share also dropped slightly to 30.2% in 2009 from 31.7% in 2008 as the management decided to maintain the price level amid the slump.
Meanwhile, the Semen Gresik Group also was forced to cut production, Semen Gresik to 8,406,000 tons in 2009 from 8,635 ,000 tons in 2008; Semen Padang to 5,365,000 tons from 5,840,000 tons and Semen Tonasa from 3,420,000 tons to 2,951,000 tons.
In 2009, PT SK was forced to suspend operation because of financial problem. The company had no fund for working capital to continue operation. In addition it had no enough power supply from PLN PLN
In currencies, this is the abbreviation for the Polish Zloty.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. .
In 2010 early August, SK resumed normal operation after reaching cooperation agreement (KSO KSO Kunstsecundair Onderwijs (Dutch)
KSO Knoxville Symphony Orchestra
KSO Kensington Symphony Orchestra (London, England)
KSO Kishwaukee Symphony Orchestra (Dekalb, IL) ) with PT Sarana Agra Gemilang. SK restarted operation of its factory with diesel power generating sets and after repairing production equipment and facilities including kiln and clinker machines. With production capacity of 570,000 tons per year, SK needs power supply of 8-10 MW. However, the operation cost was high with the use of diesel fired generating sets. The company, therefore, was not competitive especially after the government stopped subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. on diesel oil.
Semen Gresik Group grabs largest market share of 45.3%
In 2009, the Semen Gresik Group (GSS (storage) GSS - Group-Sweeping Scheduling. ) led other producers of cement in the country with a market share of 45.3%. GSS groups Semen Gresik with production of 8,406,000 tons or 22.8% of the country's total production, Semen Padang 5,365,000 tons (14.5%) and Semen Tonasa 2,951,000 tons (8%).
The second largest producer is Indocement with production of 11.5 million tons or 31.2%. The third largest is Holcim Indonesia with production of 6.1 million tons or 16.5% of the country's total production in 2009.
Other producers include Semen Bosowa Maros (4.1%) and Semen Baturaja (2.9%). Semen Andalas and Semen Kupang did not or had not started operation in 2009. Semen began operation only in 2010 after its old factory was destroyed by tsunami late 2004. Meanwhile, Semen Kupang was beset by financial difficulties that it was forced to stop operation.
SGG, ITP and Holcim Indonesia, therefore, dominate the industry.
Exports and Imports
Most of the country's cement production is disposed of on the domestic market . Exports contribute only a little to the total sales. In 2009, exports contributed only 9.8% to the country's total sales of cement.
Cement exports in 2009, totaled 4 million tons, down 18.4% from the previous year's exports of 4.9 million tons.
According to ASI, Indonesian cement products are less competitive in price in international market.
SGG exports cement from PT. Semen Padang, which has a better position in export market than other members of the group. SGG's exports in 2009 totaled 0.6 million tons, down 0.3 million tons from its exports in 2008. .
Semen Gresik has expanded operations to Middle East and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. , which constitute potential markets. Around 10% of SGG's exports have been made to the two markets. Semen Padang exports cement mainly to Sri Lanka, Maldives and Bangladesh. Semen Tonasa has so far made exports only to Timor Leste (East Timor East Timor (tē`môr) or Timor-Leste (–lĕsht), Tetum Timor Lorosae, republic, officially Democratic Republic of Timor-Leste (2002 est. pop. ).
Asia remains the largest market. In 2008 and 2009, Sri Lanka and Bangladesh were the largest markets for Indonesian cement Exports to Sri Lanka totaled 731,000 tons in 2009, down from 1,020,600 tons in the previous year. Bangladesh has regularly imported cement from Indonesia since 2002. Malaysia imports cement from Indonesia. Exports to that country grew from 491,700 tons in 2008 to 556,000 tons in 2009.
Exports fell to a number of countries Africa in 2009. Exports have been made to a number of countries in Africa including Ghana, Mozambique, and Benin. Exports to Ghana dropped from 756,900 tons in 2008 to 235,000 tons in 2009; to Benin fell from 127,000 tons to 122,000 tons and to Mozambique shrank to 35,000 tons in 2009 from 91,500 tons in 2008.
Cement consumption rising
Indonesia's cement consumption has continued to scale up from year to year. The growth rate, however, fluctuated to follow the trend of macro economic growth.
In 2008, the country's cement consumption grew strongly by 10.8% to 38 million tons. The surge in consumption was thanks mainly to growing demand from the property sector that showed a rapid growth that year. Growing demand was also recorded from infrastructure projects of the government.
In 2009, consumption grew further though slightly by 0.9% to 38.4 million tons. The consumption grew sluggishly slug·gish
1. Displaying little movement or activity; slow; inactive: a sluggish stream; sluggish growth.
2. Lacking alertness, vigor, or energy; inert or indolent.
3. in 2009 as a result of the market slump amid the devastating dev·as·tate
tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates
1. To lay waste; destroy.
2. To overwhelm; confound; stun: was devastated by the rude remark. global financial crisis especially in the first half of 2009.
Amid the global financial malaise malaise /mal·aise/ (mal-az´) a vague feeling of discomfort.
A vague feeling of bodily discomfort, as at the beginning of an illness. the country managed to chalk up chalk
1. A soft compact calcite, CaCO3, with varying amounts of silica, quartz, feldspar, or other mineral impurities, generally gray-white or yellow-white and derived chiefly from fossil seashells.
a. a positive growth in 2009. The process of recovery already began in the second half of that year. Work in a number of property projects was resumed after being shelved earlier that year. In the first two months of 2010, development was brisker especially in the property sector, but work in infrastructure projects, remained in the doldrums doldrums (dŏl`drəmz) or equatorial belt of calms, area around the earth centered slightly north of the equator between the two belts of trade winds. .
It is predicted that cement consumption would grow faster in 2010 boosted mainly by growing demand from the property sector. Cement consumption is forecast to reach 40.7 million tons in 2010 up 5.9% from 2009.
With the growing demand, capacity utilization of cement industry is expected to rise to 85%-90% in 2010 from 80% in 2009.
Cement consumption growth rate higher outside Java
Java has been the main market target for cement producers as the market size has continued to be much larger with high growth in Java. Java still accounts for 55.8% of the country's cement consumption.
However, in 2009 the highest growth in cement demand was recorded in Sulawesi. Cement demand grew 15.7% in 2009, and 19.1% in the first half of 2009. Nusa Tenggara and Kalimantan also recorded a strong growth of 37.2% and 30.6% respectively in the first half of 2009.
The regions outside Java have become more important as cement market as many large infrastructure projects have been and are planned outside Java. The concentration of infrastructure development began to shift from Java to other regions outside Java.
With the growing demand, the prospect of cement industry will remain encouraging in the coming years. ASI predicted that the country's cement consumption in 2010 would grow 5%-6% to around 40 million tons. The growth is boosted mainly by growing demand from the property projects and infrastructure projects planned by the government. In 2011, ASI predicted stronger growth of 6.5% in domestic cement consumption.
Producers begin expansion
A number of cement producers have started capacity expansion to meet growing demand on the domestic market.
PT. Semen Andalas has rebuilt a new factory to replace its old factory destroyed by tsunami late 2004 in North Aceh. The new factory in Lhok Nga started operation in September 2010 with a production capacity of 1.4 million tons a year. The construction of the new factory cost around US$175 million. Semen Andalas started operation at 60%-70% of its capacity in the first year.
In May 2010, ITP commissioned two new factories with a capacity 1.5 million tons per year. The company spent US$ 35 million (US$ 180 million) on the two factories located in Palimanan, Cirebon.
The additional capacity brought ITP's total production capacity to 18.6 million tons per year in 2010, up from 17.1 million tons in 2009.
ITP also plans to build a new plant with a capacity pf 1.5 million tons of cement per year. The factory will be built in Citeureup, West Java with an investment of around US$ 40 million. It is expected to be operational in early 2012. The new factory will increase the capacity of ITP further to 20.1 million tons per year in 2012.
ITP also has planned to build coal-fired power plant with a capacity of 2x50 megawatt meg·a·watt
n. Abbr. MW
One million watts.
mega·watt to guarantee power supply for its cement production facilities.
PT. Semen Tonasa, a subsidiary of the Semen Gresik Group (SGG) already completed expanding its capacity by 420,000 tons with an investment of US$ 50.4 million in 2010. The capacity expansion increased its capacity to 3.9 million tons/year.
Semen Tonasa also plans to expand its production capacity by 2.5 million tons per year by building a new unit called Tonasa V, located in South Sulawesi. Construction of the new factory is estimated to cost US$ 318 million. Construction of the new unit is already underway late 2010 and it is expected to be operational in 2012. Tonasa V will use equipment and machines form Europe imported at a price of US$ 150 million and from China at a price of US$ 125 million. It also plans to build a power plant with a capacity of 2x35 MW in Tonasa to cost around US$ 114 million.
PT Semen Padang, another subsidiary of SGG has also completed expansion of its production capacity by 860,000 tons for its Indarung VI plant with an investment of US$ 103.2 million in 2010. The capacity expansion increased its capacity to 6.1 million tons in 2010. Semen Padang also plans to build a new factory called Indarung VI with a capacity of 2.3 million tons per year.
PT. Semen Gresik has completed optimization optimization
Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. increasing its capacity by 800,000 tons in its unit of Tuban IV, East Java built with an investment of US$ 96 million. The expansion brought its total capacity to 9 million tons per year.
With the capacity expansion or new factories total installed capacity of the SGG in 2010 rose 12.29% from 16.92 million tons to 19 million tons per year.
Semen Gresik also plans to build a packing plant in Banyuwangi, East Java. The packing plant will has silo with an accommodating capacity of 10,000 tons and a capacity to release at least 300 tons per hour, and a packing machine with a releasing capacity of at least 2,200 sacks of cement per hour. The facility is expected to be operational in the end of 2010.
The packing plant will serve customers in eastern Indonesia, including Banyuwangi and nearby areas, Bali, West Nusa Tenggara West Nusa Tenggara (Indonesian: Nusa Tenggara Barat) is a province in south-central Indonesia. It covers the western portion of the Lesser Sunda Islands, except for Bali. and East Nusa Tenggara. Banyuwangi is chosen as the location is considered strategic.
SGG also has planned to build cement packing plant and silo in Papua. The plant will have a bagging capacity of 300,000 tons per year built at an estimated cost of Rp110 billion. Construction of the factory is expected to begin in the second half of 2010 and is to be operational in 2011. The packing plant will improve efficiency in transport and distribution of cement from Semen Tonasa. Cement will be shipped in bulk form Tonasa to Papua. Currently the SGG has 15 packing plants in the country.
PT Freeport Indonesia plans to build a cement factory with a capacity of 500 thousand tons per year. The project to be built in Timika, Papua, is estimated to cost US$150 million. The project is expected to be completed in 2012. Half of its production is for use by Freeport itself and the other half will be sent to the market in Papua.
Holcim Ltd from Switzerland, the world's second largest cement producer, through its Indonesian unit, Holcim Indonesia, will build a new cement factory in the country. Holcim Ltd is set to gain from the growing demand in Asia. Currently,
Holcim Ltd relies more on sales in emerging markets mainly Asia and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. .
Holcim Indonesia plans to build a factory with a capacity of 1.6 million tons per year. The factory will be built in Tuban, East Java. It is estimated to cost US$ 450 million. The new factory, which is to be operational in 2013, will have loading and unloading Unloading
Selling securities or commodities whose prices are dropping to minimize loss. facility off shore.
Holcim Indonesia already has cement factories in Narogong, West Java, and in Cilacap, Central Java Central Java (Indonesian: Provinsi Jawa Tengah) is a province of Indonesia. The administrative capital is Semarang. It is one of the six provinces of the island of Java. Central Java is both a political entity and a cultural concept. . Now it has a total production capacity of 8.6 million tons per year. The Tuban factory will supply cement for East Java, Kalimantan, and eastern regions of the country.
Cement industry needs large supply of power. Around 112 kWh (kilowatt kilowatt: see watt. per hour) of power will be needed in the production of 1 ton of cement. That means, an addition capacity of 5.38 million tons will need an additional supply of 602.56 megawatt (MW). Cement producers especially outside Java need to build their own power generating plants to guarantee power supply as they could not rely on supply from PLN.
Energy is a big cost component in cement industry. An increase in power price will significantly increase the production cost.
From January to December, 2009, cement price in retail market grew 9% on the average. The plan to raise the electricity tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic will likely lead to increase in cement prices. The price rise will be higher set by producers which entirely depends on PLN for power supply.
ITP's factory in Tarjun, South Kalimantan, uses electricity generated by its own power plant, but its factories in Citeureup and Palimanan, Cirebon still rely on PLN for part of power requirement. Altogether ITP supplies 20% of its power requirement
In April 2009, the anti monopoly agency (KPPU KPPU Komisi Pengawas Persaingan Usaha ) launched an investigation into allegation The assertion, claim, declaration, or statement of a party to an action, setting out what he or she expects to prove.
If the allegations in a plaintiff's complaint are insufficient to establish that the person's legal rights have been violated, the defendant can make a of cartel in cement industry. The three largest producers--Semen Gresik Group (PT. Semen Gresik, Semen Tonasa and Semen Padang), Holcim
Indonesia, and Indocement--were suspected of committing cartel . The three control 89% of the country's total production capacity.
Each year, Semen Gresik Group produces around 16.92 million tons including Semen Gresik around 8.2 million tons. Semen Padang 5.24 million tons and Semen Tonasa 3.48 million tons, Holcim Indonesia (8.7 million tons) and Indocement (15.65 million tons). Three other producers Semen Baturaja with production capacity of 1.25 million tons, Semen Andalas (1.4 million tons) and Semen Bosowa Maros (1.8 million tons). Total production of the 8 Indonesian producers was 46.29 million tons.
KPPU said with production capacity making up 89% of the country's total capacity , the three groups operated only at 49% of their installed capacity
In general when the price was good such as the case since October 2008, the producers would raise their production capacity boosted by the prospect of higher profit. However, the industry's capacity utilization remains low, despite the price hike with stable market demand.
Based on data collected by KPPU, the country's production in 2008 grew 3.2% from 35,032 million tons in 2007 to 38,533 million tons. Consumption growth rate, however, was higher at 11.4%. Cement consumption in 2008 rose to 38,072 million tons or 168 kilogram kilogram, abbr. kg, fundamental unit of mass in the metric system, defined as the mass of the International Prototype Kilogram, a platinum-iridium cylinder kept at Sèvres, France, near Paris. per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. from consumption of 34,172 million tons or 152 kilogram per capita in the previous year. Cement has been a major component determining inflation in the country especially as when infrastructure projects have been implemented with the disbursement DISBURSEMENT. Literally, to take money out of a purse. Figuratively, to pay out money; to expend money; and sometimes it signifies to advance money.
2. of fiscal stimulus stimulus /stim·u·lus/ (stim´u-lus) pl. stim´uli [L.] any agent, act, or influence which produces functional or trophic reaction in a receptor or an irritable tissue. by the government.
However, KPPU finally decided that there was no proof supporting the cartel allegation against the 8 producers. The 8 producers, therefore, were cleared of the allegation of monopoly and illicit Not permitted or allowed; prohibited; unlawful; as an illicit trade; illicit intercourse.
ILLICIT. What is unlawful what is forbidden by the law. Vide Unlawful.
2. trade practices. The 8 producers were PT. Indocement, PT Holcim Indonesia (Tbk), PT Semen Baturaja, PT Semen Gresik, PT Semen Andalas, PT Semen Tonasa, PT Semen Padang and PT Semen Bosowa Maros.
The market in Indonesia is divided by producers based on their locations . Factory location and production capacity determine their marketing coverage considering transport cost.
The larger production capacity of a factory will need larger coverage . Company groups like SGG have factories in various areas to cover larger market and improve transport efficiency. The system has been used by SGG with factories in Java, Sumatra and Sulawesi. Large capacity makes SGG the main supplier of cement in Java and part of Sumatra such as Riau and Batam .
The market of Batam is supplied from SGS's factories in Tuban as the transport cost is cheaper than when supply is made from Semen Padang .
Semen Tonasa is to strengthen the market foothold foot·hold
1. A place providing support for the foot in climbing or standing.
2. A firm or secure position that provides a base for further advancement.
1. of the SGG in Sulawesi and eastern part of the country. Semen Padang also supplies cement for export markets especially in South Asia This article is about the geopolitical region in Asia. For geophysical treatments, see Indian subcontinent.
South Asia, also known as Southern Asia and Middle East to which it is geographically closer than Semen Gresik or Semen Tonasa.
The SGG is supported by wide distribution network with 30 units of buffer warehouse in strategic locations and 15 packing plants to facilitate distribution all over the country.
Holcim Indonesia (HI) disposes of 95% of its cement production in Java. Java is expected to remain the largest cement market in the future. In 2006, cement sales in Java totaled 21.1 million tons.
PT. HI has two factories in Narogong, Bekasi, West Java and Cilacap, Central Java. It plans to build its third factory in Tuban, East Java, expected to be operation in 2013. The additional capacity is to strengthen its foothold and expand market coverage in West Java, Central Java and East Java. PT. HI focuses more on increasing sales to retail market rather than corporate market. Before being acquired by Holcim, Semen Kujang supplied cement mainly for projects and Semen Nusantara for retail market in Central Java.
Sales of Semen Kujang grew sluggishly as it could not face larger producers in market competition. After its acquisition, Holcim Indonesia changed its market orientation by supplying cement more to retail market although it also had to meet PT. SG and PT. ITP which had succeeded in establishing strong foothold in retail market.
HI also offers franchise partnership in developing retail outlets selling building materials Building materials used in the construction industry to create .
These categories of materials and products are used by and construction project managers to specify the materials and methods used for . with the brand of Solusi Rumah (Housing solution). Houses built with the Solusi Rumah scheme is 20% cheaper.
Franchisees may buy the franchise at Rp 50 million (for one owning the building material store) to Rp 700 million (for all from consultancy service to house construction). The franchisee will be trained. Until 2009, there were 96 outlets of Solusi Rumah in Java. With the concept, HI hopes to increase the number of the outlets to 480 units by the end of 2010.
Earlier, a HI's subsidiary PT Holcim Betons, offered the franchise system in concrete industry in Indonesia. Investment needed to establish a franchise business in this sector is around Rp 3.5 billion. With that investment, an investor could start production of 24,000 m3 of concrete per year. HI offers technicians to support the franchisee to develop the business. An investor will pay Rp 150 million in joint fee for 5 years and 2% of net sales Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight .
In 2009, the SGG had the largest or a 44.6% share of cement market in the country with ITP having the second largest of 30.2% and HI 13.8%. Other smaller producers split the rest.
In 2009, Semen Tonasa had a market share of 9,4%. Around 48% of its sales were in Sulawesi and 25% in Kalimantan. Semen Tonasa contributes 16% to the total production of the SGG.
Other producers with smaller market share like PT. HI, PT. SB, and PT. BSM could still increase their market share as they have used only less than 80% of their capacity.
Small producers need to expand their production capacity to meet growing market demand otherwise the would face their market share being reduced as large producers also plan capacity expansion. The SGG plans to expand its production capacity to 23.9 million tons in 2012.
Currently , the SGG has a capacity of 19 million tons a year with a market share of 44.6% in 2009. In 2010 , the SGG hopes to increase sales by 6.5% to 18.65 million tons.
The decline in the growth rate of consumption in 2009 has sharpened competition between two of the country's largest producers--PT. SG and PT. ITP. ITP suffered a sluggish growth in sales rising only 2% to 8.5 million tons in 2009 from 8.3 million tons in 2008.
In 2009, ITP's sales totaled 11.5 million tons down from 12 million tons in 2008 . Producers other than the two still recorded an increase in sales in 2009.
Meanwhile, ITP commissioned two new cement mills with a capacity 1.5 million tons per year in September 2010. The operation of the two mills in Cirebon brought the total production capacity of the company to 18.6 million tons. With the additional capacity, ITP would be able to maintain its market share of around 31 % in 2010--up from 30.2% in 2009.
Cement requirement is expected to continue to increase as there has been no product as its substitute. Cement consumption will increase with the brisker development of property and infrastructure projects.
The prospects of cement industry, however, will depend much on the economic condition including inflation and bank interest rates.
Cement production is also determined by market demand as cement could not be kept too long.
A price or interest rate change. in cement demand is not very sharp under stable economic condition. Demand grew 6% a year under normal condition.
A number of producers have made plan to expand their capacity until 2013. They plan new factory or optimize optimize - optimisation their capacity. Among those planning new factories include Semen Tonasa planning to build its fifth unit called Tonasa V with a capacity of 2.5 million tons. The new unit is to be operational in 2011. PT Semen Gresik plans to build one called Tuban V with a capacity of 2.5 million tons to be operational in 2012. Meanwhile, Indocement plans to build a new unit with a capacity of 1.5 million tons in Citeureup also to be operational in 2012.
A cement factory will need a production capacity of at least 2.5 million tons to be efficient, therefore, with an investment of US$ 125 per ton of production, a factory will cost around US$ 312,5 million.
Construction will take 2 to 3 years for completion of a new factory depending on the production capacity. Therefore, construction should start when demand is expected to increase in the next two to three years.
The additional capacity is based on estimate of market demand in five years after the factory comes on stream considering the additional capacity also planned by competitors. If the capacity is too large, there will be excess capacity which would result in opportunity cost and larger maintenance cost.
Assuming that domestic demand for cement will grow 5% per year until 2015, exports average 3.5 million tons per year, and with production capacity of at least 2.5 million tons a year for a factory and capacity utilization of 95%, the country will need capacity expansion every 2 -3 years--2011, 2013, and 2015 by 2 million-5 million tons.
Table--1 Types of cement produced in Indonesia Types Characteristics Uses Portland cement -- Used for general buildings Type I such as houses, multistoried buildings, bridges, and road, and as material for asbestos and ferro cement. Portland cement Stronger Used for construction of Type II resistant to waterside projects like sulfate ports, quays, dams, etc. Portland cement Dry quickly and Used for construction of Type III could immediately buildings that needs high sustain high early strength after casting pressure. and fast process of work such as roads and bridges and airports. Portland cement -- Used for constructions that Type IV needs low hydration heat such as big dams, buildings with thick concrete construction or buildings in dry areas. Portland cement Giving better Used to build pools to Type V protection process chemical industrial against corrosion waste, constructions in the from water and sea, etc. soil containing sulfate more than 0.20% Oil Well Cement Could harden Used for oil and gas well normally in oil construction with certain environment which depth has high temperature. Portland Composite Easily used, the Construction of concrete in Cement temperature of general, combination of rocks building with and bricks, plastering, concrete is gutter, roads, wall fences, lower, to reduce production of special cracks, the building elements like surface of pre-cast concrete, concrete concrete which is panels, paving block, etc. smooth, water resistant, sulfate resistant and has high pressure. Portland Pozzolan Resistant to Multi-storied buildings Cement sulfate and (2-3 floors), concrete moderate construction in general, mass hydration heat. concrete buildings such as full plate foundation and dams, beach and swamp area buildings and building in sulfate salt areas and buildings that need high impermeability such as sanitation buildings, water area buildings and water reservoir. White Cement Bright color Production of Terrazzo tiles, or laying of ceramics and other decorative ornaments Super Masonry House buildings Production of roof tiles, Cement and irrigation hollow brick, paving block, systems with and floor tiles concrete structure max. K 225 Source: Indonesian Cement Association (ASI), Data Consult Table--2 Production capacity of Indonesia's cement industry, 2000-2009 Capacity ('000 tons/year) Year Clinker Cement Growth (%) 2000 43,470 46,970 -- 2001 43,780 47,140 0.4 2002 44,425 47,490 0.7 2003 44,425 47,490 0.0 2004 43,340 47,490 0.0 2005 42,690 46,090 -2.9 2006 40,730 44,890 -2.6 2007 40,730 44,890 0.0 2008 39,288 44,009 -1.9 2009 40,899 47,975 9.0 Average 0,3 Source: Indonesian Cement Association (ASI), Data Consult Table--3 Cement factories of the Semen Gresik Group (SGG), 2009 Total production Number of capacity Units of Companies factories (unit) (million tons) PT. Semen Gresik 3 9,0 PT. Semen Padang 4 5,9 PT. Semen Tonasa 3 4,1 Total 10 19,0 Source: PT. Semen Gesik Table--4 Shareholders of Semen Gresik, 2009 Shareholders % Government 51.01 Blue Valley Holdings, Pte 24.90 Public 24.09 Source: Semen Gresik, Data Consult Table--5 Shareholders of PT. HI Shareholders % Holcim Ltd 77.33 Public and creditors 22.67 Source: Data Consult Table--6 Cement factories of ITP, 2009 Total production Locations/name Number of capacity of Factories factories (unit) (million tons) Citeureup 9 11,9 Palimanan 2 2,6 Tarjun 1 2,6 Total 12 17,1 Source: PT. Indocement Tunggal Prakarsa Table--7 Shareholders of ITP, 2009 Number of shares Shareholders (pieces) % Birchwood Omnia Ltd 1,877,480,863 51 PT Mekar Perkasa 479,735,234 13.03 Public 1,324,015,602 35.97 Total 3,681,231,699 100 Source: PT. Indocement Tunggal Prakarsa Table--8 Indonesia's cement producers and capacity, 2009 ('000 tons) Companies Start-up Clinker Semen PT. Semen Gresik, Tbk 1957 7,161 8,530 PT. Semen Padang 1910 4,952 5,410 PT. Semen Tonasa 1968 3,528 3,900 PT. Holcim Indonesia/formerly 1975 6,358 8,265 PT. Semen Cibinong PT. Indocement Tunggal 1975 15,600 17,100 Prakarsa, Tbk PT. Semen Bosowa Maros 1999 1,800 3,000 PT. Semen Andalas 1982 -- -- PT. Semen Baturaja 1980 1,200 1,200 PT. Semen Kupang 1984 300 570 Total 40,899 47,975 Source: ASI, Data Consult, processed Table--9 Domestic coal requirement Requirement Year (million tons) 2008 6 2009 7 2010 * 7,6 Source: ASI Note * estimate Table--10 Indonesia's cement production, 2000--2009 Designed capacity ('000 tons/y) Production ('000 tons) Cap. Utilization Year Clinker Cement Clinker Growth (%) (%) 2000 43,470 46,970 30,119 -- 0.69 2001 43,780 47,140 33,880 12.5 0.77 2002 44,425 47,490 33,248 -1.9 0.75 2003 44,425 47,490 32,629 -1.9 0.73 2004 43,340 47,490 34,886 6.9 0.80 2005 42,690 46,090 34,004 -2.5 0.80 2006 40,730 44,890 34,970 2.8 0.86 2007 40,730 44,890 35,914 2.7 0.88 2008 39,288 44,010 37,680 5.1 0.96 2009 40,899 47,975 35,375 -6.1 0.86 Production ('000 tons) Cap. Utilization Year Cement Growth (%) (%) 2000 27,789 -- 0.59 2001 31,099 11.9 0.66 2002 30,720 -1.2 0.65 2003 30,647 -0.2 0.65 2004 33,230 8.4 0.70 2005 33,917 2.1 0.74 2006 33,032 -2.6 0.74 2007 35,033 6.1 0.78 2008 38,303 9.3 0.87 2009 36,906 -3.6 0.76 Source: ASI, Data Consult, processed Table--11 Cement production by companies, 2008--2009 (000 tons) Producers 2008 2009 PT. Semen Andalas 0 0 PT. Semen Padang 5,840 5,365 PT. Semen Baturaja 1,049 1,069 PT. Indocement Tunggal Prakarsa Tbk 12,243 11,531 PT. Holcim Indonesia, Tbk 5,965 6,102 PT. Semen Gresik, Tbk 8,635 8,406 PT. Semen Tonasa 3,420 2,951 PT. Semen Bosowa Maros 1,349 1,482 PT. Semen Kupang 24 0 Total 38,533 36,906 Source: ASI, Data Consult processed Table--12 Producers and market share, 2009 Production Producers (000 tons) Shares (%) PT. Semen Andalas 0 0 PT. Semen Padang 5,365 14.5 PT. Semen Baturaja 1,069 2.9 PT. Indocement Tunggal Prakarsa Tbk 11,531 31.2 PT. Holcim Indonesia, Tbk 6,102 16.5 PT. Semen Gresik, Tbk 8,406 22.8 PT. Semen Tonasa 2,951 8.0 PT. Semen Bosowa Maros 1,482 4.1 PT. Semen Kupang 0 0 Total 36,906 100.0 Source: ASI/ICN processed Table--13 Cement domestic sales, exports and imports, 2000--2009 Sales ('000 tons) Export Domestic Total Total Imports Year sales Clinker Cement exports sales (000 tons) 2000 22,307 3,552 4,903 8,455 30,762 24 2001 25,700 3,707 5,750 9,457 35,157 44 2002 27,173 4,184 3,791 7,975 35,148 60 2003 27,528 4,270 3,073 7,343 34,872 11 2004 30,192 4,673 2,946 7,619 37,810 17 2005 30,432 3,407 3,289 6,696 37,128 1,055 2006 30,695 5,023 2,245 7,268 37,964 1,280 2007 32,763 4,873 2,929 7,802 40,565 1,410 2008 36,539 3,301 1,641 4,942 41,481 1,532 2009 37,029 2,797 1,219 4,016 41,045 1,383 Source: ASI, BPS, Data Consult Table--14 Clinker and cement exports by countries of destination, 2008-2009 (000 tons) Countries of destination 2008 2009 Sri Lanka 1,020.6 731 Bangladesh 923 632 Malaysia 491.7 556 Mauritius 227.3 284 UEA -- 249 Ghana 756.9 235 Australia 332.1 223 India -- 200 Madagascar 191.4 192 Brunei Darussalam 180.9 169 Tanzania 123.8 166 Benin 127 122 Timor Leste 78.3 69 Mozambique 91.5 35 Singapore 118.6 12 Sub total 4,663.1 3,875 Other countries 279.1 141 Total 4,942.2 4,016 Source: ASI Table--15 Indonesia's cement consumption, 2000--2009 Consumption Consumption per Year ('000 tons) Growth (%) capita (kg) 2000 22,331 -- 110 2001 25,744 15.3 125 2002 27,233 5.8 130 2003 27,539 1.1 130 2004 30,208 9.7 140 2005 31,487 4.2 144 2006 31,975 1.5 145 2007 34,373 7.5 156 2008 38,080 10.8 162 2009 38,420 0.9 166 Source: ASI, ICN Table--16 Indonesia's cement consumption by provinces, 2007-2009 (000 tons) (000 tons) Regions Provinces 2007 2008 2009 Sumatra 8.042 8.921 8.872 Aceh 1.027 1.044 958 North Sumatra 1.937 2.182 2.317 West Sumatra 565 800 705 Riau 979 894 876 Riau Island 680 760 701 Jambi 401 370 383 South Sumatra 966 1.110 1.159 Bangka Belitung 222 263 263 Lampung 896 1.069 1.021 Bengkulu 371 428 491 Java 19.658 21.245 21.126 Jakarta 3.393 3.633 3.529 Banten 1.978 2.040 1.837 West Java 4.793 5.336 5.479 Central Java 3.795 4.350 4.486 Yogyakarta 985 720 601 East Java 4.715 5.166 5.194 Kalimantan 1.986 2.439 2.436 West Kalimantan 446 561 554 South Kalimantan 469 588 631 Central Kalimantan 263 363 326 East Kalimantan 807 927 925 Sulawesi 2.073 2.596 3.003 South east Sulawesi 231 253 297 South Sulawesi 1.007 1.374 1.669 Central Sulawesi 334 364 396 North Sulawesi 402 474 472 Gorontalo 99 130 131 Nusa Tenggara 1.663 2.023 2.174 Bali 858 1.082 1.102 West Nusa Tenggara 494 571 647 East Nusa Tenggara 311 369 424 Maluku & Papua 750 849 802 Maluku 346 396 330 North Maluku -- -- -- West Papua -- -- -- Papua 404 453 419 Total Indonesia 34.172 38.071 38.413 Growth Growth Growth Regions Provinces (%) 2007 (%) 2008 (%) 2009 Sumatra 14,5 10,9 -0,5 Aceh 12,0 1,7 -8,2 North Sumatra 15,4 12,7 6,2 West Sumatra 12,8 41,7 -12,0 Riau 18,4 -8,7 -2,1 Riau Island 7,6 11,8 -7,9 Jambi 16,0 -7,8 3,6 South Sumatra 17,6 15,0 4,4 Bangka Belitung -3,2 18,4 -0,1 Lampung 21,1 19,3 -4,6 Bengkulu 10,9 15,4 14,6 Java 2,0 8,1 -0,6 Jakarta 3,0 7,1 -0,2 Banten 5,3 3,1 -9,9 West Java -4,6 11,3 2,7 Central Java 6,2 14,6 3,1 Yogyakarta 22,4 -26,9 16,6 East Java 0,4 9,6 0,5 Kalimantan 20,0 22,8 -0,1 West Kalimantan 14,4 25,6 -1,3 South Kalimantan 21,8 25,5 7,3 Central Kalimantan 45,2 37,8 -10,1 East Kalimantan 15,6 14,8 -0,2 Sulawesi 7,5 25,2 15,7 South east Sulawesi 7,6 9,4 17,3 South Sulawesi 4,5 36,5 21,4 Central Sulawesi 21,5 9,0 8,9 North Sulawesi 3,3 18,0 -0,4 Gorontalo 16,2 31,8 0,2 Nusa Tenggara 10,9 21,6 7,5 Bali 12,5 26,1 1.9 West Nusa Tenggara 16,3 15,6 13,4 East Nusa Tenggara -0,3 18,9 14,7 Maluku & Papua 25,5 13,1 -5,5 Maluku 11,7 14,3 -16,6 North Maluku -- 42 -- West Papua -- 12 -- Papua 40,3 12,1 -7,6 Total Indonesia 6,9 11,4 0,9 Source: ASI, ICN processed Table--17 Several expansion planned by cement producer, 2010-2013 Production Companies Location capacity (per year) PT. Semen Andalas Lhok Nga, Nanggroe Semen--1.4 million Aceh Darusalam tons per year PT. Indocement a. Palimanan, West a. Semen--1.5 Tunggal Prakarsa Java million tons Tbk b. Citeureup, b. Cement mill--1.5 West Java million tons PT. Semen Tonasa Pangkep, South a. Semen--420,000 Sulawesi tons b. Semen-- 2.5 million tons PT. Semen Padang Indarung, West Sumatra a. Semen--860,000 tons b. Semen--2,3 million tons PT. Semen Gresik a. Tuban, East Java a. Semen--800,000 tons b. Tuban, East Java b. Semen- 2.5 million tons c. Banyuwangi, c. Packing plant-- East Java 10,000 tons d. Papua d. Packing plant and Silo--300,000 tons PT. Freeport Timika, Papua Semen--500,000 Indonesia tons PT. Semen Baturaja Baturaja, South Semen--300,000 Sumatran tons PT. Holcim Tuban, East Java Semen-- Indonesia Tbk 1.6 million tons Companies Investment Start up plan PT. Semen Andalas US$ 175 million 2010 PT. Indocement US$35 million 2010 Tunggal Prakarsa Tbk US$40 million 2012 (valued at Rp386 billion) PT. Semen Tonasa a. US$ 50.4 million 2010 b. US$ 375 million 2012 (Rp3.2 trillion) PT. Semen Padang a. US$ 103.2 2010 million 2012 PT. Semen Gresik US$96 million 2010 Rp3.2 trillion 2010 2012 Rp110 billion 2013 PT. Freeport US$150 million 2012 Indonesia PT. Semen Baturaja 2012 PT. Holcim US$450 million 2013 Indonesia Tbk Source: Industry ministry Table--18 Cement prices by brands, October 2010 Producers Brands Price (per sack) PT. Indocement Tunggal Tiga Roda a. Rp 53,000 Prakarsa Tbk b. Rp70,000 (white cement) PT. Semen Gresik Tbk Semen Gresik Rp 52,000 PT. Holcim Indonesia Holcim Rp 53,000 PT. Semen Padang a, Rp 49,000 (40 kg) b, Rp 50,000 (50 kg) PT. Semen Andalas a, Rp 43,000 (40 kg) b, Rp 50,000 (50 kg) Source: ICN processed Table--19 Market shares of cement producers in Indonesia Companies Domestic sales 2008 Share (%) PT. Indocement Tunggal Prakarsa, Tbk 12,050,892 31.7 PT. Semen Gresik 8,351,054 21.9 PT. Semen Padang 5,124,210 13.5 PT. Semen Tonasa 3,179,986 8.4 PT. Holcim Indonesia 5,375,000 14.1 PT. Semen Andalas 1,551,128 4.1 PT. Semen Baturaja 1,062,524 2.8 PT. Semen Bosowa Maros 1,358,264 3.6 PT. Semen Kupang 20,968 0.1 PT. Semen Kupang 38,069,219 100 Companies Domestic sales Share Growth 2009 (%) (%) PT. Indocement Tunggal Prakarsa, Tbk 11,588,484 30.2 -3.8 PT. Semen Gresik 8,517,548 22.2 2.0 PT. Semen Padang 5,007,975 13.0 -2.3 PT. Semen Tonasa 3,617,358 9.4 13.8 PT. Holcim Indonesia 5,342,574 13.8 -1.2 PT. Semen Andalas 1,549,209 4.0 -0.1 PT. Semen Baturaja 1,041,815 2.7 -1.9 PT. Semen Bosowa Maros 1,784,831 4.6 31.4 PT. Semen Kupang -- -- -- PT. Semen Kupang 38,376,083 100 0.9 Source: ASI, ION Table--20 Estimate of additional production capacity of cement industry in Indonesia, 2011-2015 (000 tons) Existing Additional Domestic Year Capacity capacity requirement 2011 52,520 200 43,243 2012 57,820 5,300 50,850 2013 64,220 6,400 53,656 2014 66,220 2,000 58,085 2015 70,220 4,000 58,995 Cap. Utilization Year Exports Production (%) 2011 3,500 46,743 89 2012 3,500 54,350 94 2013 3,500 57,156 89 2014 3,500 61,585 93 2015 3,500 62,495 89 Source: ICN processed