Indocement to increase coal consumption next year

By Thomas Sembiring

IDX-listed cement maker PT Indocement Tunggal Prakarsa Tbk plans to increase coal consumption next year as its fourth production facility in Bogor, West Java, is set to start production in the fourth quarter of this year.

Indocement Chief Financial Officer Tju Lie Sukanto said Thursday that the additional coal demand next year is estimated at around 600,000-800,000 tons.

He added that the company?s annual coal consumption currently stands at 2.3-2.6 million tons with varying calorific value supplied mainly by the country?s top coal producers. He did not disclose the name of the producers. The coal is used for fuel and mixing material in cement production.

Meanwhile, Indocement Christian Kartawijaya said that the current drop in the price of coal has help reduced the company?s production costs as coal accounts for about 30 percent of the total costs.

He added the reduced production cost bodes well for the company particularly after President Joko Widodo cut down cement price by Rp 3,000 per bag.

Editing by Reiner Simanjuntak