Major cement producer Indocement Tunggal Prakarsa (INTP) bets on the government action and the recent interest rate cuts for a boost in business this year.
The company commented that cement consumption could grow by 3 percent to 5 percent in 2016 after growing at only 3.4 percent last year (Source: The Jakarta Post).
The government’s massive infrastructure projects would provide a significant push for the cement industry. In 2016, the government allocated as much as Rp 313.5 trillion (US$23.51 billion) to infrastructure, marking its commitment to develop ports, roads and others facilities across the archipelago. The allocation is an increase on the Rp 290.3 trillion earmarked for infrastructure in 2015.
Indocement also attributed its optimism to the government’s 12 packages and deregulation measures that make it easier to do business, and to Bank Indonesia’s (BI) series of interest rate cuts – the rate now stands at 6.75% – that have made bank financing more affordable.
To learn more and meet the players that shape the cement industry, visit Concrete Show South East Asia in Jakarta during 14-16 September 2016. The leading business event and learning platform for the Concrete and Construction Industry in South East Asia – organized by UBM – gathers over 200 companies from 28 countries which share technology, insight and create real growth opportunities for Indonesia and the region.