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'The planned plant in South Kalimantan will be able to produce 2.5 tons of cement annually,' Industry Minister M.S. Hidayat told reporters after meeting a business delegation from China's Anhui province at the ministry's office. The output will be used for domestic purposes.

Indonesia's per capita cement consumption of 171 kilograms remains far lower than its peers, including Thailand and Vietnam's respective 394 and 564 kilograms per capita consumption. There are growth opportunities; therefore, for cement makers, especially given the fact that cement is one of the key indicators of gross domestic product (GDP) growth in a domestic consumption-reliant economy.

Anhui Conch Cement is currently awaiting the completion of its land acquisition process and a license to be issued by the South Kalimantan administration so that the plant can be built in Tanjung, Tabalong, according to Hidayat.

The plant would be equipped with a cement-grinding plant, a seaport, a 60 megawatts (MW) power plant and other supporting infrastructure, the minister had previously said.

Henan Hongxing Mining Machinery Co., Ltd is a joint-stock mining machinery manufacturing enterprise integrated in scientific research, production and marketing. It is located at the High & New Technology Industries Development Zone of Zhengzhou,China with an area of 50 thousand m2 which includes 15,000 m2 of standard heavy duty industrial workshop. Equipments are more than 160 pieces, including large and medium sized metal processing, riveting and installing equipments. There are more than 660 workers including 80 administrators with secondary and senior occupational titles and engineering technicians. In order to promote the competitive strength, the advanced technologies have been introduced from America, Germany, Japan and Australia, which established the international advanced production line, first-class modern testing base as well as research centers of sand maker, mill and mine-selecting equipment. Scientific management, advanced processing technology and innovative manufacturing theory make the company become the mining machinery manufacturing and exporting base in China.

Anhui Conch Cement was also preparing to acquire land in Manokwari, West Papua, next year for another cement plant that would require another $400 million, Hidayat added. It is expected to meet cement demands in the surrounding areas.

Anhui province Deputy Governor Huang Haisong, who led the Chinese business delegation, said the construction of the plant was part of China's commitment to boost its investments, as conveyed by Chinese Premier Wen Jiabao during his visit to Indonesia last year.

'Given its abundant natural resources, Indonesia has myriad opportunities for investment. Anhui Conch Cement is the first firm [from Anhui province] to enter Indonesia. If it succeeds, we will invest a lot more in the country,' he said.

A number of investors from Anhui province are exploring the possibility of building an industrial park in Indonesia to serve Chinese manufacturing, according to Haisong.

The park would be occupied by Chinese firms working in a wide array of manufacturing industries, from textile machinery production to the mineral ore processing sector, he added.

'We have completed our survey and we will invest [in Indonesia],' Haisong said without providing further details.

Haisong expected the Indonesian government to provide fiscal incentives, particularly tax holidays, to Chinese firms keen to invest in Indonesia.

The tax-holiday incentive offers 10-year tax breaks on investments of at least Rp 1 trillion in five selected sectors: base metal, oil refining, petrochemicals, renewable energy and telecommunications equipment.

China's largest cement maker, Anhui Conch Cement, plans to begin construction of a cement plant in South Kalimantan later this year with an anticipated investment of US$400 million, a minister says.