Early Recovery Signs, Cement Market on Java Island Growing at 12%

Meanwhile, the cement market in Kalimantan actually decreased (-4.4%) for 10 months in 2017 to only 3.33 million tons from the previous same period in 2016 of 3.49 million tons. In addition, the cement market in Sulawesi also fell (-1.7%) to 4.36 million tons from 4.44 million tons previously.

Cumulatively, cement sales in Indonesia in 10 months of 2017 grew 7.3% to 54.18 million tonnes, a good enough capital to close this year with a growth range of 4% -5%, surpassing initial estimates. The increase in cement sales was mainly supported by a significant increase in October 2017 of 12.5%, as the government seriously boosted infrastructure projects ahead of the close of the year.

Observing such a dynamic market movement, the cement players did not miss a new strategy to enlarge niche market domination. The three market leaders of the cement industry, PT Holcim Indonesia Tbk, PT Semen Indonesia Tbk and PT Indocement Tunggal Prakarsa Tbk, are launching new products to target specific cement infrastructure. It is the company’s strategy to capture the larger market in the infrastructure and construction segments, in line with the higher growth in the bulk segment than the retail packaging segment.

Holcim Indonesia is innovating through special cement products under the Solid Road brand. Gary Schutz, CEO of PT Holcim Indonesia Tbk said, with the Solid Road brand, Holcim offers products to overcome the problem of soil stabilization as a road foundation. “Project owners want to build roads that have high resilience, contractors want to address potential maintenance problems. While the road users want to get comfort and avoid congestion due to road repairs that take a long time, “he said in a written statement.

According to Schutz, Solid Road is a special cement formula to obtain soil stabilization, so as to help lower the cost of construction and maintenance of roads. “Solid Road targets national, regional, and private road development projects throughout Indonesia,” he said.
Not to forget, Cement Indonesia launched a new cement variant product under the brand name Max Strength Cement which is the first portland slag cement in Indonesia. The goal is to respond to specific requests in infrastructure and construction sectors requiring high-strength, durable, high flexural, and suitable cement for mega projects.

President Director of Semen Indonesia Johan Samudra said that Max Strength Cement is specially formulated for ready mix and precast concrete industries for the development needs of mega structures such as bridge construction, flyover, underground tunnel, skyscrapper and tower in accordance with the needs of modern society buildings today.

“Max Strength Cement which is a portland slag cement was launched to answer the special demand in the infrastructure sector that is being promoted by the government. Especially for underground MRT, very vulnerable leakage, must use special cement. Cement that should not crack a single hair, “he said while giving a speech at the launching and talk show Max Strength Cement, at the JW Marriot Hotel, Jakarta, Wednesday (30/8).

Construction of the dam, he added, should also use a slag cement that has the power over ordinary cement. “Precast concrete in Jagorawi Toll for example, looks thin concrete, but it’s very strong. Strength was obtained from the slag cement, “he explained.

Specifically, Johan describes, Max Strength Cement has several advantages: cement with high compressive strength and strong Ientur, has a lower heat of hydration that increases the durability of concrete against aggressive environmental conditions, such as carbonation attacks, chloride, and high sulfate. Max Strength Cement is able to extend the life of concrete or building. “With Max Strength Cement, the building structure is more durable so it can reduce maintenance costs,” said Johan.

According to him, Max Strength Cement will be produced from the Indonesian Cement production facility in Cigading, Banten, with a capacity of more than 1.5 million tons. The raw materials come from B3 waste of PT Krakatau Steel (KS) and PT Krakatau Steel Posco. For this year, Semen Indonesia obtained a slag quota from KS Posco of 350 thousand tons. “Slag raw material from KS Posco will be ground into slag powder, and mixed with OPC produced in Ciwandan to produce slag cement,” he said.

Portland slag type cement has been widely used in the world including in developed countries for the construction of monumental buildings such as Buruj Al Arab, Lotte Tower in Seoul, Humbridge Bridge in England, Koyama Dam in Japan, and TV Tower Florian in Germany.

Brand New
Meanwhile, PT Indocement Tunggal Prakarsa (Indocement) launched the latest cement product, Semen Rajawali. According to President Director of PT Indocement Tunggal Prakarsa Tbk, Christian Wijaya, the launch of Semen Rajawali is to meet market demand for Portland Pozzolan Cement (PPC) cement.

“Semen Tiga Roda which is the main product of Indocement and is a Portland Composite Cement (PCC) type cement. And Semen Rajawali is a Portland Pozzolan Cement (PPC) type cement that was launched to respond to market demand, “he told reporters.

In the production process, he said, Semen Rajawali uses the addition of addictive substance natural pozzolan material, so as to reduce carbon emissions into the air due to the production process. “This is what distinguishes Semen Rajawali with other cement brands,” he said.

He continued that, the launch of Semen Rajawali is to meet the needs of consumers who want quality products at affordable prices. “Semen Rajawali offers quality cement not less with three-wheeled cement, but the price is more affordable,” he continued.

Currently, Semen Rajawali has been available in more than 900 building stores spread across 13 cities in Java Island, namely Serang City, Karawang, Purwakarta, Sukabumi, Garut, Tasikmalaya, Cirebon, Subang, Tegal, Pekalongan, Banyumas Purwokerto and Kebumen. He added that so far, demand for Semen Rajawali continues to grow with the compounded annual grout rate (CAGR) reaching more than 13 percent. “This shows that Semen Rajawali is in demand by the community, because we see the Indonesian people also have the need for cements that are affordable, but the quality remains high,” he said. (* / Various sources / team editor 04)