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State-owned trust company Danareksa has agreed to partly
finance the construction of a Rp 4.5 trillion (about US$500 million)
cement plant to be built by Semen Gerobogan in Central Java.
Semen Gerobogan general manager Tonny Santoso said Tuesday that
Danareksa had signed a letter of intent (LoI) to become one of the
financiers for the cement plant, which when completed will have a
production capacity of 2.3 million tons a year.
However, Tonny refused to disclose any details on the size of
Danareksa's investment in the project.
"For sure, three months after the signing of the LoI, we will start the
preparations for the construction of the cement plant," he said.
The plant will occupy about 2,500 hectares of land, including a lime
mining concession area. For the first stage of the project, only 60
hectares of land will be used for the factory facilities and another
1,000 hectares for lime mining.
The deal signed by Danareksa and Semen Gerobogan was one of 38
investment agreements signed during the Central Java Infrastructure
Business Forum, held Nov. 5-7 at the Quality Hotel in Surakarta.
The agreements cover 27 infrastructure projects, including waste
treatment, water, railways and the agribusiness. The agreements have a
total value of about Rp 6.56 trillion.
Even though the investment commitments failed to reach the initial
target of Rp 14 trillion, Central Java Governor Mardiyanto hailed the
forum as a success.
"We hope all the projects can be realized so they will be able to
support the local economy and create more jobs for locals," he said.
Investors from China, Taiwan, the Netherlands, France and Malaysia
attended the forum.
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