Indocement Tunggal Prakarsa, PT.

I N D O C E M E N T A N N U A L R E P O R T 1 9 9 9 R e v i e w o f O p e r a t i o n s
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Previous investments to improve our production and support facilities
continued to provide the intended benefits in terms of lower energy
consumption, improved production process and lower overhead costs
The waste heat recovery system implemented several years ago
continued to yield substantial savings in power generation cost.
The central power control system developed last year provided
adequate protection to our plant's manufacturing equipment against
costly breakdown in the event of power failure.
We have completed the cooler modification projects for Plant 7
resulting in improved production efficiency and sustained product
quality. Completing the major modification projects for our mining
facility in the Citeureup production complex during the year
also enhanced our capability to supply a consistent quality of
raw materials.
On March 1, 1999, the kiln of P11 was fired and a trial operation
was successfully performed. The P11 project was executed during
the economic downturn and political instability, however the project
was completed as originally scheduled. Certain improvements and
modifications are still to be undertaken before commercial operation
starts in early 2000.
In addition, the completion of P11 gives us the flexibility to run only
those efficient plants to minimize energy consumption. The effort to
reduce energy consumption in plants that are not efficient has given
us positive results. The total average heat consumption for plants
that are in working operation improved by about 34 Kcal/kg clinker.