Jakarta (Antara Bali) - Chief of the presidential staff Teten Masduki said President Joko Widodo on Monday received reports of a sharp increase in the domestic consumption of cement signaling the brisker development of the property and infrastructure sectors.
"The domestic consumption of cement rose sharply since August," Teten told reporter after accompanying President Director of PT Semen Indonesia Suparni and chairman of the Indonesian Cement Association (ASI)Widodo Santosa to meet the president at the presidential office here.
He said the country's cement consumption in August 2015 totaled 5.4 million tons or up 17.8 percent from the same months in 2014.
The consumption in the first eight months of this year totaled 37.4 million tons or 0.1 percent higher year-on-year.
The consumption in the remaining four months of this year is estimated to rise 4-6 percent on-year, that altogether the total consumption in 2015 would reach 61.98 million tons or 2 percent higher than 59.9 million tons in 2014.
"It would be a good signal," he said.
Teten said 75 percent of the cement consumption is for the property sector and 25 percent for infrastructure.
"This indicates the start of infrastructure development and an improvement in the purchasing power of the people," he said.
He hoped that cement consumption would continue to rise until the end of the years boosted by growing demand from infrastructure sector.
"The rise in cement consumption also indicates stronger growth of the economy," he said.
ASI chairman Widodo Santosa said he was worried when cement consumption declined 1 percent in the first quarter of this year.
He also hoped that the improving trend would continue through next year as infrastructure development would be accelerated.
"Next year consumption would increase if infrastructure development would brisker as expected," he said.
Widodo said supply would not fall short of requirement as the domestic production capacity is more than enough to meet demand especially as there are four new factories to come on stream.
"The four new factories of Bosowa, Holcim, Merah Putih and Panasea have a production capacity of 11 million tons to add to the country's total capacity," he said.
He said Indonesia would be the largest cement producer in Southeast Asia in 2017 if all new cement factories have come on line.
President Director of PT Semen Indonesia Suparni said with the increase in the domestic consumption of cement, the factories of his company could operate normally.
"No more factory would lie idle," the president of the the state owned cement maker said.
PT Semen Indonesia has a number of subsidiaries including PT Semen Gresik, PT Semen Padang and PT Semen Tonasa. (WDY)
COPYRIGHT © ANTARA News Bali 2015
"The domestic consumption of cement rose sharply since August," Teten told reporter after accompanying President Director of PT Semen Indonesia Suparni and chairman of the Indonesian Cement Association (ASI)Widodo Santosa to meet the president at the presidential office here.
He said the country's cement consumption in August 2015 totaled 5.4 million tons or up 17.8 percent from the same months in 2014.
The consumption in the first eight months of this year totaled 37.4 million tons or 0.1 percent higher year-on-year.
The consumption in the remaining four months of this year is estimated to rise 4-6 percent on-year, that altogether the total consumption in 2015 would reach 61.98 million tons or 2 percent higher than 59.9 million tons in 2014.
"It would be a good signal," he said.
Teten said 75 percent of the cement consumption is for the property sector and 25 percent for infrastructure.
"This indicates the start of infrastructure development and an improvement in the purchasing power of the people," he said.
He hoped that cement consumption would continue to rise until the end of the years boosted by growing demand from infrastructure sector.
"The rise in cement consumption also indicates stronger growth of the economy," he said.
ASI chairman Widodo Santosa said he was worried when cement consumption declined 1 percent in the first quarter of this year.
He also hoped that the improving trend would continue through next year as infrastructure development would be accelerated.
"Next year consumption would increase if infrastructure development would brisker as expected," he said.
Widodo said supply would not fall short of requirement as the domestic production capacity is more than enough to meet demand especially as there are four new factories to come on stream.
"The four new factories of Bosowa, Holcim, Merah Putih and Panasea have a production capacity of 11 million tons to add to the country's total capacity," he said.
He said Indonesia would be the largest cement producer in Southeast Asia in 2017 if all new cement factories have come on line.
President Director of PT Semen Indonesia Suparni said with the increase in the domestic consumption of cement, the factories of his company could operate normally.
"No more factory would lie idle," the president of the the state owned cement maker said.
PT Semen Indonesia has a number of subsidiaries including PT Semen Gresik, PT Semen Padang and PT Semen Tonasa. (WDY)
Editor : Edy M Yakub
COPYRIGHT © ANTARA News Bali 2015