Cement maker PT Conch-SDIC Papua Cement Indonesia will start production at its plant in Manokwari, West Papua, in July, the Indonesian-Chinese joint venture has announced.

The company’s head of general affairs, Hu Xiaohong, said that the first phase of the two-phase US$400 million plant was nearing completion and almost ready for production.

The capacity of the first phase of the plant will be 1.5 million tons per year, he said.

Executive deputy chairman of China Chamber of Commerce in Indonesia, Shen Chao, said that the choice of Papua was in line with President Joko “Jokowi” Widodo’s policy to build new infrastructure in islands outside Java. The cement company, the first in Papua, also aims to create jobs for local people.

“The company can help improve the welfare of local people,” he said.

Cement prices in Papua, Indonesia’s eastern-most province, are among the highest in Indonesia because the commodity has to be brought in from other provinces amid poor transportation infrastructure, he said.

Currently, more than 1,000 Chinese companies operate in Indonesia in a variety of sectors, Shen said. (sha/dmr)

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