Monday, April 9, 2012
State Minister for State Owned Enterprises Dahlan Iskan is optimistic that the cement production of PT Semen Gresik (Persero) Tbk (SMGR) will reach 25 million tons per year in line with the operation of its two new cement making plants. Even, with his high self-confidence, Dahlan Iskan states the largest cement company in Thailand (Siam Cement) can be defeated by the national company.
"Thailand will very soon be defeated in the next few months. Siam Cement (Thailand) with its production capacity of 25 million tons per year will be soon defeated by Semen Gresik with its production capacity of 26 million tons per year. Moreover, if the new cement plant construction projects in Aceh and Padang can be executed," says Dahlan.
Dahlan delivers the statement through the official website of the Ministry of State Owned Enterprises on Monday (04.09.2012), after conducting an official visit at Tonasa V Cement Plant in South Sulawesi.
Dahlan further states that the construction of the new cement making plant which is located not far from a harbor is a new project whose completion is being accelerated. The project is the construction of Tonasa V cement plant of PT Semen Tonasa in South Sulawesi.
"With this new cement plant, Semen Tonasa can increase the production capacity of 3 million tons per year. Although all these years, Semen Tonasa has actually been able to produce 4 million tons per year, the production volume apparently has not been able to meet the growing demand of cement in Eastern Indonesia," says Dahlan.
During his official visit at the cement making plant of PT Semen Tonasa, Dahlan sees a long line of ships in which it describes many things. He believes there is a remarkable shortage of cement indeed.
"It happens because the national economy is getting better and better. Construction activities are everywhere across the country. Prices of cement have been steadily increasing. The queue of ships until two weeks describes that cost of transport will certainly increase," says Dahlan.
If the new cement plant of Semen Tonasa has been operating commercially, you can imagine, according to Dahlan, the national development will run faster in Eastern Indonesia. Moreover, many large-sized power plant construction projects (for the size of Eastern Indonesia) will be completed in 2012, including: a 2 × 50 MW power plant in Barru, a 2 × 100 MW power plant in Jeneponto, a 150 MW power plant in Poso, and some others. The two key raw materials of development, cement and electricity, will have no problem anymore.
The cement making plants owned by Semen Tonasa will become one of the mainstays of development in Eastern Indonesia. After the fifth plant is in commercial operation, a decision must be immediately made to build the sixth plant. The deposit of cement production raw materials in Tonasa seems to be abundant and unlimited. The factory is located on the slope of a limestone mountain which has become the raw material for cement production. No transportation costs are required.
"The raw materials here can be used for hundreds of years," says M Sattar Taba, President Director of PT Semen Tonasa.
The improvement of production capacity does not happen in Tonasa only. In Tuban of East Java, Semen Gresik is also in the process of building a new cement plant. The new plant is almost operational. Hopefully, next month, the equipment installation and commissioning is completed.
"On Thursday last week I went to Tuban to watch the lighting the trial fire on the rotary kiln of the new plant. It means that from Tuban alone there will be an additional production volume of three million tons of cement per year. The total of 13 million tons of cement is now produced in Tuban," he explains.
Semen Gresik Group is currently expanding all over Indonesia. The expansion has not only taken place in Tuban and Tonasa, but also in Sumatra. The Expansion plan in Padang is already made. And the required budget for the corporate action has been prepared.
"Only some minor problems in the areas remain. If the expansion in Padang is delayed, it could be switched to the province of Aceh. It must be in Sumatera in order to support the accelerated development in Sumatra," he explains.
"The investment of state owned enterprises should not be postponed, let alone canceled. The company has responsibilities to serve the mission of the country in maintaining economic growth which must continue to increase. At a time when many countries are currently experiencing economic difficulties, it should be the right moment for Indonesia to pass and leave them behind," says Dahlan.
"With the new investments in Tuban and Tonasa, Semen Gresik Group will soon become the largest cement company in Southeast Asia," Dahlan further explains.