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Jakarta (ANTARA News) - Publicly-listed cement maker PT Indocement Tunggal Prakarsa Tbk is ready to build a new cement mill to cater to rising demand which grows 6 percent annually.

"We will build a new cement mill if demand grows 8-10 percent," Indocement Financial Director Christian Kartawijaya said on Friday.

In the year ended February cement demand from industries reached 6.3 million tons of which 1.95 million tons or 19.1 percent were contributed by Indocement, he said.

He predicted the inflation rates would grow at a lower pace in the months ahead, adding the low lending rate and the rupiah`s stable exchange rate would be the key to boosting construction activities.

Cement demand mostly came from the property sector. "Nearly 70-80 percent of our cement production goes to the property sector," he said.

Quoting data from the Indonesian Real Estate Association, Christian said Indonesia, with a population of more than 250 million, needed an estimated 800 new homes every year.

He said he could not pin much hope on demand from the infrastructure sector the government was boosting. "Demand from the infrastructure sector only accounts for 15-20 percent of the total," he said. (*)

Editor: B Kunto Wibisono
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