Indonesian Cement - Further 2011 Gains Expected

BALI, Indonesia, June 21, 2011 -

Domestic cement demand in the high-growth market of Indonesia is
expected to continue advancing in 2011 thanks to a young population
and an increased need for housing, according to Anton Gunawan,
Chief Economist of Bank Danamon.

His comments were made during the keynote presentation given at
Cemtech Asia 2011 international cement conference, currently
underway at the Grand Hyatt Hotel, Bali, Indonesia.

During his opening presentation, Mr Gunawan was keen to centre
his attention on regional and Indonesian economic developments and
how such changes would impact cement demand.  ”Southeast Asian
economies will continue to perform well, except for Vietnam, which
is still vulnerable owing to high inflation, a large current
account and fiscal deficit,” he highlighted.

In terms of Indonesia’s economic outlook, he remains cautiously
optimistic, stating that “Faster economic growth,” would prevail,
underpinned by “a still big informal sector and rising optimism -
towards investment grade - in 2012.” He also welcomed “more
pro-poor social policies” in terms of education and health to
combat “high poverty levels and under-employment rates.”

Going forward, he said: “Indonesia’s young population generates
strong demand for new housing with government estimates indicative
that 710,000 [housing units] are needed annually… Not surprisingly
strong domestic cement consumption growth will continue in 2011
throughout most of Indonesia.”

Indonesian Cement Association (ASI) chairman, Urip Timuryono,
also remains confident of the local market’s growth potential and
during his presentation highlighted that domestic producers are
determined to meet local requirements. “Cement demand nationwide
would rise from 40Mt in 2010 to almost 55Mt by 2015. New cement
capacity would add a further 25Mt of production output over that
same timeframe, keeping the industry totally self-reliant,” he
said.

Last year, the Indonesian cement demand rose steadily to 40.78Mt
in 2010 with the nine domestic producers achieving sales of
39.18Mt. Semen Gresik, which is 51 per cent government-owned,
remains the country’s leading producer with 19.7Mta of cement
capacity followed closely by Indocement, part of HeidelbergCement,
with 18.6Mta.

Speaking on behalf of the Cemtech Asia conference organisers,
David Hargreaves was also delighted to report from Indonesia at a
time when the country is clearly developing quickly as a major
cement-consuming country.

“Indonesia has huge potential for growth given its population of
close to 250m, a low per capita consumption of just 160kg and a
present cement production base running close to its limits.

“It’s also not surprising,” Mr Hargreaves noted, “that a number
of existing domestic players as well various industry newcomers
look set to invest heavily in this dynamic cement market.”

The event continues with a range of presentations on the vibrant
Asian and ASEAN cement markets from leading industry experts,
including representatives from Anhui Conch Kawasaki Engineering
Corp, UltraTech Cement Lanka, PT Holcim Indonesia and Cemex
Philippines.

Technical presentations, focussing on plant performance, cost
reductions, optimisation and sustainability issues, will be
supported by a dedicated technical workshop as well as an
international exhibition featuring world-class equipment suppliers
to the cement industry.

Note to editors: Cemtech is the
leading global cement conference & exhibition organizer.
Attracting cement specialists from 25 different countries, this
international three-day conference and exhibition offers attendees
the opportunity to study regional cement and construction markets,
along with advances in cement production technology and latest
methods for improving environmental performance. The next event
will be held in Warsaw, Poland.

The following companies are
exhibiting at the conference: Wieland Lufttechnik GmbH, Rockwell
Automation, Ibau Hamburg, Opsis AB, Hazemag & EPR GmbH,
Panalytical Asia Pacific Spectris Pte Ltd, Scantech International
Pty, ABB, Iteca Socadei, Ramco Systems Pte Ltd, Cemengal S.A.,
Durag Process & Systems Technology GmbH.

For more information, please visit href="www.cemtech.com/bali">www.Cemtech.com/bali

David Hargreaves
Email: info@cemnet.com
Telephone: +44(0)1306-740-363

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