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News PT Kobexindo Cement to build cement plant in South Aceh

PT Kobexindo Cement to build cement plant in South Aceh

Written by Global Cement staff 28 May 2024
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Indonesia: PT Kobexindo Cement has entered an agreement to construct a new cement plant in South Aceh, despite a national moratorium on such developments. The project, under China-based Hongshi Holding Group subsidiary Zhejiang Hongshi Cement, plans a US$621m investment for a facility with a 6Mt/yr capacity, according to the Jakarta Post.

The Indonesian central government's moratorium, aimed at curbing oversupply in the cement market, prohibits new cement plants except in specified eastern regions. This edict arose as national cement production significantly exceeded demand, according to the Indonesia Cement Association (ASI).

ASI president Lilik Unggul Raharjo said that the move by South Aceh regency not only violated the ban but also threatened the viability of three state-owned cement companies in Sumatra. Raharjo said "These companies are guaranteed to go out of business. The Industry Ministry will conduct a technical verification of foreign direct investment in the cement industry before the permit is issued.”

Last modified on 29 May 2024
Published in Global Cement News
Tagged under
  • Indonesia
  • agreement
  • Plant
  • moratorium
  • Ban
  • Kobexindo
  • Hongshi Holdings
  • Investment
  • Indonesian Cement Association
  • GCW661
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