Indonesia based cement manufacturer PT Holcim Indonesia Tbk (SMCB), and the Jakarta provincial government (DKI Jakarta) have signed two infrastructure related agreements. The agreements that involve road repair in the capital city using the super material SpeedCrete, has total contract value of $5.5 million. The agreement was signed last week between two parties.
The Jakarta provincial government plans to repair 200 kilometers of the city’s “Transjakarta” bus lanes on high-tech and fast-drying concrete around provincial greater areas.
Holcim spokesperson Ian R.Ferdinandus, said in a statement beside Transjakarta road, the company plans to repair Marunda street in North Jakarta, Kebon Nanas-Ahmad Yani intersection in East Jakarta and the Jl. Pramuka-Matraman inter-section, in Central Jakarta.
In the 2015 State Budget, the Indonesia government has decided to allocate around Rp23 trillion ($1.68 billion) for provincial roads and regency roads. Minister for Public Works and Housing Affairs Basuki Hadimuljono, said over the next five years, the government is planning to allocate a total of Rp490 trillion to repair provincial roads, as well as roads linking sub-districts within a regency or “regency roads”.
He added, about one-third of the total 47,000 kilometers of road connecting cities within provinces, called “provincial roads”, have been damaged. Meanwhile, almost half of the 350,000 km of roads in the regencies are also damaged.
“Our goal is to repair at least 70 per cent of the damaged roads over the next five years,” the minister said.
In first half of 2015, Holcim as a group reported that its sales fell 3.1 per cent to CHF8.65 billion, as better performance in North America could not compensate for lower sales in other regions.
Net income increased by 4.9 per cent to CHF690 million, mainly as a result of the divestment of Holcim’s minority shareholding in Siam City Cement. Net income attributable to shareholders of Holcim Ltd was also up by 18 per cent to CHF573 million.
Cement volumes decreased 2 per cent to 67.6 million tons as Group regions Asia Pacific, Europe, and Africa Middle East reported declines. Aggregates deliveries increased 3.4 per cent to 72.0 million tons, building on the volume growth in Group regions Europe and North America.
For 2015, Holcim expects that the global economy continues its gradual recovery. Key construction markets of Holcim in countries like the USA, India, Mexico, Colombia, the UK and the Philippines are expected to be the main growth drivers.
Europe overall should have a flat development. Latin America will continue to face uncertainties in Brazil but should overall show slight growth in 2015. The Asia Pacific region is expected to grow although at a still modest pace. A flat development is expected in Africa Middle East.
In this environment cement volumes should increase in all Group regions in 2015 with the exception of Europe and Africa Middle East.
PT Holcim Indonesia Tbk (SMCB) is now in the process to merge with other cement producer PT Lafarge Cement Indonesia after its holding company Swiss Holcim Ltd and French Lafarge SA announced the final step of the merged.
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