Cement industry's coal consumption will rise 1 ton a year

By Tri Subhki R

Indonesian economic growth will drive up cement consumption and production, which in turn will eventually benefit the coal industry, according to Chairman of Indonesia Cement Association (ICA) Widodo Santoso on 3rd Annual Business Meeting of Coal Producers and Buyers in Bali, Monday.

"Cement industry?s coal consumption will approximately rise 1 million tons a year," Widodo said. He expects the coal consumption in 2013 will reach between 11 million - 11.5 million tons. For 2012, ICA said the total coal consumption was 10.5 million tons.

Widodo also explained about the future development of new cement plants, which may attract coal producers to provide coal supply. He said there are five new cement plants that will need large coal supply, including one plant in Karawang, West Java and Banjarmasin, South Kalimantan and two plants in near Pelabuhan Ratu, West Java.

Accumulatively, the cement production from existing producers and the newcomers will reach 85 million - 90 million tons a year by 2016, or the largest cement producers in Asia, according Widodo.

Editing by Johannes Simbolon