Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >> Power  >> Semen Indonesia mulls building power plant in West Sumatra
NEW UPDATES Asean Affairs   18 June 2014  

Semen Indonesia mulls building power plant in West Sumatra

State-run cement producer Semen Indonesia is considering building a 100 megawatt (mw) coal-fired power plant to supply its facilities in Padang, West Sumatra, the construction of which is expected to start next year.

Semen Indonesia president director Dwi Soetjipto said the company was undertaking a study on the plan, particularly on the capacity level of the power plant.

Once the power plant is completed, it will supply a cement facility in Padang that will see an increase in electricity consumption following the operation of the Indarung VI factory in 2016.

Dwi said his company hoped to conclude the study before year-end, so that it could begin construction next year.

“Our facilities in Padang need about 150 mw. Once the new factory starts operations, the total power needed might rise to 200 mw, so I think it won’t be too much to construct a new 100 mw plant,” he said.

Semen Indonesia, via its subsidiary, Semen Padang, launched the construction of its Rp 3.25 trillion (US$275.26 million) Indarung VI cement factory late last month.

The new factory, which has an annual production capacity of 3 million tons of cement, is expected to commence operations in the second half of 2016.

With the operation of the new factory, Semen Padang’s total production capacity is expected to increase to 10.5 million tons of cement per year, up from the previous 7.5 million tons.

“We are focusing on building a plant to support the operation of our facilities, but if there is surplus of power from the plant we might also distribute it to local residents,” said Dwi.

He added that power plant construction usually cost the company about $150 per mw in investment.

The plant will use unusable coal with a high sulfur content.

Dwi said building infrastructure was becoming more pressing for the publicly listed giant, with higher power plant costs due to the rise in production and the increase in electricity prices bringing more burdens on the cement industry.

As of May 1, the government raised electricity prices by either 38.9 percent or 64.7 percent, depending on businesses’ power consumption.

The increases, however, will be phased in gradually every two months until the end of the year.

Semen Indonesia, according to its published annual report, saw its energy usage rise by 13.2 percent year-on-year (y-o-y) to 2.52 million mw per hour in 2013.

Its electricity costs during the year rose by 30.1 percent y-o-y to Rp 1.88 trillion.

The company’s electricity costs made up about 39.8 percent of the company’s total costs last year.

In February, Semen Indonesia commenced the operation of Tonasa V facility in Pangkep, South Sulawesi, which is equipped with 2x35 mw coal-fired power plants to support its operations.

The total investment for the factory, which will produce 3 million tons of cement once fully operational, and the power plant stood at Rp 3.5 trillion.

Semen Indonesia also agreed in a memorandum of understanding (MoU) signed late last year to cooperate with Japan-based JFE Engineering Corporation to construct a waste heat recovery power generator (WRHPG) in Tuban, East Java.

The system, which is expected to generate 28 mw of electric power using unused waste heat from the cement production process, is scheduled to begin construction before year-end to support the operation of the company’s Tuban facilities.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                            June 18, 2014 Subsribe Now !
• NCPO insists no policy to expel foreign workers Subcribe: Asean Affairs Global Magazine
• Mekong Delta contributes to rice export growth 
• Semen Indonesia mulls building power plant in West Sumatra
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Gov’t continues to seek new markets
• Firms turn to agriculture alternatives
Asean Analysis                    June 13, 2014

• Asean Analysis June 13, 2014
U.S. Interests in Myanmar Require Looking beyond the 2015 Elections
Advertise Your Brand

Asean Stock Watch    June 17, 2014
• Asean Stock Watch-June 17, 2014
The Biweekly Update
• The Biweekly Update  June 13, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand