Cement industry's demand on coal to move up

The Indonesia Cement Association (ASI) is upbeat that the demand for coal by cement industries would continue swelling due to the government?s plans to focus the development to the eastern part of Indonesia.

The association?s members are currently building two new industries with the capacity of 5 million tonnes per year in East Java province to anticipate the increase demand mainly after 2012.

?We ask the supports (from the coal producers) to ensure sustainable supply of coal to cement industries,? Association chairman Urip Timuryono said. In 2011, cement industries would purchase some 6.2 million tonnes of coal, compared to 5 million tonnes in 2010.

?We expect the coal consumption, mainly the low caloric value, would jump up to about 8.5 million tonnes by 2015,? he said.

Currently, Indonesia has nine cement producers namely PT Semen Andalas Indonesia in Aceh; PT Semen Padang in West Sumatra; PT Indocement Tunggal Prakarsa, Tbk operating in West Java and South Kalimantan, PT Holcim Indonesia in West Java and Central Java; PT Semen Gresik in East Java; PT Semen Tonasa in South Sulawesi, PT Semen Bosowa Maros, South Sulawesi; PT Semen Kupang in East Nusa Tenggara.

The nine companies with the total capacity of 52 million tonnes per year shifted to coal from oil fuel mainly after the economic crisis in 1999 era as efforts to cut its production cost. (adianto)