Spending on construction is seen picking up in 2015. (Antara PhotoWahyu Putro A.)
Bosowa Sets Aside $500m for 2015 Cement Plant Expansion
BY :RANGGA PRAKOSO
JANUARY 12, 2015
Jakarta. Bosowa Group, a Makassar-based conglomerate with interests ranging from cement making to car distribution, is setting aside $500 million this year to build several cement plants in 2015 to boost production capacity as the company seeks to take advantage of an anticipated pick-up in construction projects across the country.
The company is building cement plants in Maros, South Sulawesi; Ciwandan, Banten; Banyuwangi, East Java; Rembang, Central Java; and Sorong, West Papua. The plants would boost the group’s cement production capacity to 12 million metric tons over the next three years from just 3 million tons now.
“Bosowa is expanding because we see the cement industry growing,” group chief executive Erwin Aksa said over the weekend.
Indonesia Cement Association estimates cement sales to grow to 66 million tons this year, on the back of government new initiatives in infrastructure development. In 2014 the country’s consumption was 60 million tons of cement, up 3.3 percent from a year earlier, the association's data showed.
Many construction projects had been delayed last year, amid uncertainty tied to the outcome of the legislative and presidential elections.