Indonesia’s SI secures capital of IDR 1tn

Semen Indonesia (SI), the state cement company, is open to hold talks with the public following opposition surrounding its Rembang cement plant. A senior SI official is reported as saying that many are in support of the plant but there are also those who oppose the setting up of the IDR 4.45 trillion (€300.13 million/US$337.06 million) plant.

A target to begin operations by 2016 has been set by Semen Indonesia for a cement factory in Rembang regency of Central Java.

Cement branded as Semen Gresik will be produced in the Rembang factory.

The value of investment in the factory stands at IDR 4.45tn (€299.19 million/US$332.30 million), and production capacity is 3 million tons of cement/year.

The construction works of the factory are expected to be completed by the end of 2016, according to Semen Indonesia's president Director Suparni.

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In Indonesia, a new cement factory will be built by state-run cement maker Semen Indonesia's unit Semen Gresik for IDR 3.7 trillion (€235 million). The factory in Rembang, central Java will have an output capacity of 3 million tonnes/year when it begins operation in 2016. Also, the cement company has signed a deal to secure a letter of credit facility worth IDR 1.40 trillion from Bank Mandiri to support the project.

According to Enthus Asnawi, the finance manager of Wijaya Karya Beton (Wika Beton), the concrete company has generated IDR 1.2 trillion (€76.79 million) from its initial public offering (IPO).

The proceeds will be used to finance its expansion including plant expansion. Expansion will be carried to several areas including to Sulawesi, Java and Sumatra.

The state company plans to expand overseas in late 2014 in partnership with its parent company, Wijaya Karya, to Algeria as well as the Middle East an

In 2015, the net profit of state-run cement manufacturer Semen Indonesia fell by 18.7% to IDR 4.52 trillion (€301.62 million/US$335.76 million) from IDR 5.56 trillion in 2014.

In the period between July 2015 and September 2015, its net income dipped by 21.6%.

Also, in 2015, its overall revenue fell slightly from IDR 26.99 trillion in 2014 to IDR 26.95 trillion due to slow demand.

Meanwhile, the production at two new cement production facilities in Central Java and West Sumatra are slated to start b