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Indonesia govt prepares incentive for cement investment

24th June 2012 | 3.406 Views
Indonesia govt prepares incentive for cement investment
Cement industry. (ANTARA/Fiqman Sunandar)
Jakarta (ANTARA News) - To increase investment in the construction of cement plants in East Indonesia (KTI), the government will facilitate a tax allowance.

"The tax allowance will hopefully boost the building of new cement factories particularly in Indonesia`s eastern parts. Indonesia`s cement consumption has been very high," Director General for the Manufacturing Industry of the Industry Ministry Panggah Susanto said in Jakarta, Sunday.

Panggah said the cement industry is expected to remain referring to the realization of the green industry with energy-saving technologies in line with the road map designed by the Industry Ministry.

"Including by reducing the ratio of klinker use from 90 to 80 percent, thus reducing the use of energy for burning and we are also promoting the use of biomass energy", he said.

In the meantime, general chairman of the Indonesian cement association (ASI) Widodo Santoso said the reduction of the ratio of klinker to 80 from 90 percent linearly could reduce the consumption of energy by 10 percent per ton of cement.

"Reducing klinker would not change the structure of cement strength for which there is an Indonesian National Standard (SNI)," he said.

Widodo said that part of cement supplies is still imported.

"Indonesia is still importing Andalas Cement (Lafarge) to meet consumption in Aceh and surroundings, because the company`s plant has yet to operate to the full," he said.