JAKARTA - The domestic cement industry is experiencing excess capacity or overcapacity. As of 2023, the industrial production capacity reaches 119.9 million tons. Meanwhile, domestic absorption is only 65.5 million tons or the percentage of utilities is 55 percent.
Responding to this, the Director of the Cement, Ceramic and Processing Industry of Non-Logam Galian Materials at the Ministry of Industry (Kemenperin) Putu Nadi Astuti said there were several factors that were the cause.
"The need for national cement is around 66.8 million tons in 2023 and Indonesia also does not export too much, only 1.35 million tons in 2023," Putu Nadi said at a press conference at the Ministry of Industry's office, Tuesday, June 4.
"So, the utilization of the national cement industry since 2017 is indeed below 70 percent," he continued.
Putu Nadi added that the cause of domestic cement production capacity was also because domestic demand was not comparable to the amount available.
"So, imports (semen) are very small and may be used for testing and so on. Meanwhile, domestic needs are not too large compared to the available cement industry capacity," he said.
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In addition, he said, the increase in the capacity of the domestic cement industry was also caused by the construction of a new cement factory.
"If we look at the development of cement production capacity since 2020-2023, there is indeed a slight increase in capacity. It may be due to the construction of a cement factory starting before the moratorium (new investment) and ending in 2022 or 2023. So, the capacity is recorded in 2023-2024," he said.
Menurut Putu Nadi, Menteri Perindustrian (Menperin) Agus Gumiwang Kartasasmita telah menyampaikan surat kepada Menteri Koordinator (Menko) Bidang Perekonomian Airlangga Hartarto agar ada aturan teknis dan nonteknis terkait daftar prioritas untuk investasi pembangunan pabrik semen.
"However, the proposal has not been accommodated in the revision (rules) regarding the proposed investment priority list," he added.
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