Indonesian Cement – Further 2011 Gains Expected

June 21, 2011

BALI, Indonesia, June 21, 2011 /PRNewswire/ –

Domestic cement demand in the high-growth market of Indonesia is
expected to continue advancing in 2011 thanks to a young population and an
increased need for housing, according to Anton Gunawan, Chief Economist of
Bank Danamon.

His comments were made during the keynote presentation given at Cemtech
Asia 2011 international cement conference, currently underway at the Grand
Hyatt Hotel, Bali, Indonesia.

During his opening presentation, Mr Gunawan was keen to centre his
attention on regional and Indonesian economic developments and how such
changes would impact cement demand. “Southeast Asian economies will continue
to perform well, except for Vietnam, which is still vulnerable owing to high
inflation, a large current account and fiscal deficit,” he highlighted.

In terms of Indonesia’s economic outlook, he remains cautiously
optimistic, stating that “Faster economic growth,” would prevail,
underpinned by “a still big informal sector and rising optimism – towards
investment grade – in 2012.” He also welcomed “more pro-poor social
policies” in terms of education and health to combat “high poverty levels
and under-employment rates.”

Going forward, he said: “Indonesia’s young population generates strong
demand for new housing with government estimates indicative that 710,000
[housing units] are needed annually… Not surprisingly strong domestic
cement consumption growth will continue in 2011 throughout most of

Indonesian Cement Association (ASI) chairman, Urip Timuryono, also
remains confident of the local market’s growth potential and during his
presentation highlighted that domestic producers are determined to meet
local requirements. “Cement demand nationwide would rise from 40Mt in 2010
to almost 55Mt by 2015. New cement capacity would add a further 25Mt of
production output over that same timeframe, keeping the industry totally
self-reliant,” he said.

Last year, the Indonesian cement demand rose steadily to 40.78Mt in 2010
with the nine domestic producers achieving sales of 39.18Mt. Semen Gresik,
which is 51 per cent government-owned, remains the country’s leading
producer with 19.7Mta of cement capacity followed closely by Indocement,
part of HeidelbergCement, with 18.6Mta.

Speaking on behalf of the Cemtech Asia conference organisers, David
Hargreaves was also delighted to report from Indonesia at a time when the
country is clearly developing quickly as a major cement-consuming country.

“Indonesia has huge potential for growth given its population of close
to 250m, a low per capita consumption of just 160kg and a present cement
production base running close to its limits.

“It’s also not surprising,” Mr Hargreaves noted, “that a number of
existing domestic players as well various industry newcomers look set to
invest heavily in this dynamic cement market.”

The event continues with a range of presentations on the vibrant Asian
and ASEAN cement markets from leading industry experts, including
representatives from Anhui Conch Kawasaki Engineering Corp, UltraTech Cement
Lanka, PT Holcim Indonesia and Cemex Philippines.

Technical presentations, focussing on plant performance, cost
reductions, optimisation and sustainability issues, will be supported by a
dedicated technical workshop as well as an international exhibition
featuring world-class equipment suppliers to the cement industry.

Note to editors: Cemtech is the leading global cement conference &
exhibition organizer. Attracting cement specialists from 25 different
countries, this international three-day conference and exhibition offers
attendees the opportunity to study regional cement and construction markets,
along with advances in cement production technology and latest methods for
improving environmental performance. The next event will be held in Warsaw,

The following companies are exhibiting at the conference: Wieland
Lufttechnik GmbH, Rockwell Automation, Ibau Hamburg, Opsis AB, Hazemag & EPR
GmbH, Panalytical Asia Pacific Spectris Pte Ltd, Scantech International Pty,
ABB, Iteca Socadei, Ramco Systems Pte Ltd, Cemengal S.A., Durag Process &
Systems Technology GmbH.

        For more information, please visit http://www.Cemtech.com/bali
        David Hargreaves
        Email: info@cemnet.com
        Telephone: +44(0)1306-740-363

SOURCE Cemtech Asia Conference & Exhibition

Source: newswire

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