The Indonesian Cement Association (ASI) encourages national cement industry players to boost exports in order to overcome oversupply in the cement industry sector. To support this step, the Indonesian Cement Association (ASI) asked the Director General of Mineral and Coal for guarantees regarding coal supply. Chairman of the Indonesian Cement Association (ASI) Widodo Santoso said that to boost exports, the need for coal needs to be met in order to increase utilization. It was recorded that clinker utilization from January to October 2022 fell compared to the previous period, from 72.69% to 67.69%, as well as cement utilization which fell from 57.12% to 55.55%. Exports will increase national monetary trade and increase regional government revenues through mining taxes. C. Hampered exports will increase production costs, which will leave producers with no choice to raise prices in the domestic market. Widodo acknowledged that the decline in cement sales had been contributed by weather conditions, the turbulent global economy and a decline in property sector development. The weakening cement industry will also hinder the government's development priorities. Therefore, this export step is a breath of fresh air that can prevent cement factories from 'dying'. "If there is no coal, the (cement factory) will die, we will continue to coordinate with ESDM so that coal stocks improve," said Widodo.
He also expects the Domestic Market Obligation (DMO) for coal to continue with a purchase price of USD 90/ton. "The hope is that in 2023 the DMO (coal) will continue to run so that the cement industry can maintain good stocks so that cement supplies can run smoothly," he said. Regarding the importance of cement exports, Researcher from the Center of Economic and Law Studies (Celios), Akbar Fadzkurrahman said that with exports, utilization will increase. From a production capacity of 59.1% only for domestic use to 69.62% for exports. Apart from expanding the export market, another option is to innovate in order to produce derivative products that meet market needs and have better added value. Meanwhile, the government can help by intensifying investment in infrastructure development outside Java Island with domestic cement.
