CEMENT CONSUMPTION DOWN 5.8 PRECENT

Jakarta, April 24 (ANTARA) - Domestic cement consumption in Indonesia dropped 5.8 percent in the first quarter of 2009, president director of PT Semen Gresik, Dwi Sucipto, said here on Thursday.

"Demand for Semen Gresik meanwhile drops two percent," he said after receiving an award from the Development and Financial Monitoring Agencey for his success in implementing good corporate governance.
He said the biggest drop in demand occurred in Java followed by Sumatra and Kalimantan.
"Demand for the commodity in Sulawesi and the Indonesian eastern region still grows and we are lucky we have Semen Tonasa," he said.
Dwi did not tell in detail the amount of cement consumption in the period but based on economic growth report presented by finance minister Sri Mulyani cement sales from January to February still reached around 5,500 tons while in the first quarter in 2008 the volume of domestic cement sales reached 9,000 tons.
Regarding the drop, Dwi Sucipto, said he was not worried because demand for the commodity on the export market remained high. "We still conduct exports which could offset the drop in domestic cement consumption," he said.
Dwi Sucipto said the drop was related to the global crisis which still continued and the implementation of the recent legislative elections.
"The legislative elections has had a little effect because there is no building activities during the holidays," he said.
Dwi said he was optimistic that cement consumption will grow in the third quarter. "If the government stimulus is effective, domestic cement consumption will certainly increase," he said.