Andre Rosiade On Cement Factory Moratorium: Just A Discourse

Member of Commission VI DPR RI Andre Rosiade. (Photo: Antara)

JAKARTA - Member of Commission VI of the DPR RI, Andre Rosiade, said that the cement industry is currently experiencing an oversupply problem.

He assessed that the oversupply was because the permit to open a new factory had not been stopped.

"Don't let this cement moratorium (factory permit) be just a discourse, because in Aceh now there is the construction of a new cement factory, the second is in East Kutai. Whereas here you enter the potential demand for cement for the state capital (IKN) which is 21 million tons, people The factory was built there, sir, in East Kutai. I'm afraid that Semen Indonesia Group will only be a spectator," said Andre during the Commission VI Hearing Meeting of the Indonesian House of Representatives with the President Director of PT Semen Indonesia Group (SIG), Donny Arsal at Nusantara I Building, Senayan, Jakarta, Tuesday 24 May.

Andre encouraged PT SIG to coordinate with the Ministry of SOEs, the Ministry of Investment, and the Ministry of Industry to ensure the government's commitment to stopping the moratorium on new cement factories in Indonesia.

According to him, PT SIG also needs to coordinate with the Ministry of Energy and Mineral Resources (ESDM) regarding the availability of coal as cement raw material.

"Don't let me hear that the stock of your factory is only for two weeks, sometimes it even stops (production) because the coal stock runs out. This needs to be our thinking, don't let us ask SIG to dominate the market, they often stop (production) because coal stocks are limited. Moreover, private cement (companies) are currently given the freedom to buy coal at market prices," said Andre.

Even so, Andre appreciates the solar panels that GIS has started to implement. According to him, this is effective in reducing electricity tariffs by 15 percent.

For this reason, he suggested that GIS use the operating expenses (opex) method so that electricity costs can be reduced more.

"I suggest because there are many solar panel players in the world, so don't use capex anymore, sir, but use the operating expenses (opex) method, don't invest. Invite and invite these solar panel players to invest in your factory, the important thing is that it is cheap I heard that this year there are three solar panel factories being built in Indonesia, this can be a note for you, don't invest in capex, sir, just use opex, so just manage service, so they profit from paying for your electricity, not from investment," concluded Andre.