REPUBLIKA.CO.ID, LEBAK - National cement manufacturer, PT Gama Group will build a cement plant with brand of Merah Putih Cement in Lebak regency, Banten with investment worth 600 million USD. This plant is built on land of 1,400 hectares and expected to operate in 2015 and to be one of largest cement plants in Indonesia.

"The first construction will be established on Wednesday," Public Relation Officer of Gama Group, Nana Suharna said on Tuesday.

One clinker unit of cement plant can produce nine thousand tonnes of raw materials. Previously, Merah Putih Cement was produced in Vietnam in 1992 with capacity of 4.5 million tonnes per year. It has best quality so its price can compete in domestic market. 

Indonesia still experiences cement deficit about 40 percent per year. Ministry of Industry predicts that demand for cement in 2015 will reach 55 million tonnes, while total capacity of cement plants in Indonesia is only about 52 million tonnes. 

Head of Investment Services and Integrated Licensing in Lebak, Hari Setiono said investors came to Lebak through foreign direct investment.

In the first step, Gama Group will import one million tonnes cement from Chinfon Cement Corporation (Vietnamese company) and will repack it in Indonesia. Import will be conducted until establishment of cement plant finished. 

Gama Group controls majority shares of Chinfon Cement Corporation about 70 percent. Chinfon Cement Corporation produces 4.5 million tonnes cement in Vietnam. 

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