Cement operations are highly dependent upon adequate supply of fuel and electric power. The operations use energy in the form of coal to heat kilns and electricity to run other machinery and equipment.

We obtain our coal from third-party suppliers in Indonesia. As Indonesia has large coal reserves, we are confident that coal can be obtained from a number of local suppliers.

The Citeureup electric power generation facilities have over 300 MW of generating capacity, consisting of diesel fuel, gas turbine and waste heat-recovery system. This capacity is sufficient to supply all of the energy requirements at the site. We have made investments to enhance our production and supporting facilities, one of which being the waste heat-recovery system that has reduced power consumption in considerable amount. Likewise, plant P-12 in Tarjun is powered by a coal-fired generator with a 55 MW capacity, which is sufficient to supply all of the electricity requirements at the site. The Cirebon site purchases electricity from PLN, the national power company, but also has its own back-up generating facilities. Likewise, we purchase diesel oil and natural gas from the Government-owned oil and gas company to power our electricity generation facilities.