Lawmakers Urge Caution Over Proposed Conch Cement Investment in South Sulawesi

RRI.CO.ID, Makassar - Indonesia's House of Representatives (DPR) has stressed that investment in the cement industry must support a healthy investment climate while safeguarding the sustainability of existing producers. The issue was raised, during a visit by the House's Commission VI to discuss the proposed investment by Conch Cement Indonesia, a subsidiary of China's Anhui Conch Cement, in Barru Regency, South Sulawesi.

Deputy Chairperson of Commission VI, Nurdin Halid, said the visit followed concerns raised by environmental advocates over PT Conch Cement Indonesia's investment plan. According to him, differing views remain over whether the project complies with regional spatial planning regulations, hence consultation with all relevant stakeholders is necessary.

"According to them (the environmental advocates), the project violates the law because the Supreme Court revoked its environmental permit after ruling that it was inconsistent with the regional spatial plan," Nurdin told reporters after a meeting at the South Sulawesi Governor's Office in Makassar on Friday, July 10, 2026.

"However, we have also received input from the Barru Regency administration and the local legislative council, both of which maintain that the project complies with the spatial plan," he added, as quoted on the DPR's website.

To gain a comprehensive understanding of the issue, Commission VI brought together state-owned cement producers Semen Indonesia Group (SIG), the South Sulawesi provincial government, and the relevant local administrations. Nurdin said the discussions were aimed at ensuring that new investment could proceed without disrupting Indonesia's existing cement industry.

He noted that cement production capacity in eastern Indonesia stands at around 27 million metric tons annually, while market demand is only about 13 million tons. The oversupply, he said, is one of the reasons the government imposed a moratorium on the construction of new cement plants.

Nevertheless, Nurdin explained that PT Conch Cement Indonesia's current proposal involves only the construction of a cement packing plant rather than a manufacturing facility. Even so, Commission VI has sought clarification regarding the source of the cement to be packaged, to ensure the project would not adversely affect existing producers.

"If the cement to be packaged is supplied from PT Conch Cement Indonesia's factories in other regions, it could affect the production and distribution of Semen Tonasa (a subsidiary of SIG) and Bosowa. That, in turn, could have implications for business sustainability and even lead to potential layoffs," said the Golkar Party lawmaker.

Nurdin also pointed to an Indonesian Supreme Court ruling that revoked the environmental permit for the planned cement industry project in Barru because it did not comply with the regional spatial plan. He said any new permit application must fully comply with prevailing laws and regulations.

Nurdin added that the licensing process is currently still at the survey and evaluation stage at the Ministry of Environment before the central government decides whether to grant environmental approval. He said the commission has stressed that the government must exercise great caution in approving the environmental impact assessment.

"There must be certainty that the project will not adversely affect agricultural land, residential areas, the environment, or the livelihoods of communities in Barru Regency," he said.