Anticipating growing demand as Indonesia pushes the development of roads, airports and seaports, the country’s largest cement maker is prioritising sales of its ready-mix product to end-users. "Plans by the government to boost infrastructure projects will spur demand for ready-mix," said Dwi Soetjipto, president director of Semen Gresik. As part of its preparation for the increased demand, Semen Gresik has upgraded its sales and marketing strategies, in addition to boosting production. In an attempt to lower its energy costs, the company has shifted from using expensive, high-calorie coal to a less expensive, lower-calorie variety. It also plans to increase its use of agricultural waste products as alternative fuels and upgrade operational efficiency with better synergy between subsidiaries. The Semen Gresik group, which has a 45 per cent share of the Indonesian cement market, includes Semen Gresik, Semen Padang and Semen Tonasa. The company’s focus extends beyond Indonesia. Semen Gresik is Southeast Asia’s second-largest cement maker by value, and it hopes to step up exports to complement increased demand at home. The company is also planning to purchase a cement company in Malaysia or Vietnam or any other Southeast Asia as part of its efforts to boost production by 25 per cent. While it looks overseas for expansion, Semen Gresik wants to push its production capacity to 25 mtpa annually beginning this year, and eventually rising to 30 mtpa by 2014. The company has earmarked $400 mn to $500 mn this year to finance expansion, and $400 million for capital expenditure.
![](https://indiancementreview.com/wp-content/uploads/KLUBER.jpg")
