Following the recent designation of Kebumen in Central Java as a UNESCO Global Geopark, Medco Group’s subsidiary PT Semen Gombong has formally canceled its plans to develop a cement factory in the regency. 

The cancellation was confirmed by regional environmental officials after the company’s environmental impact analysis (AMDAL) was rejected.

Head of Pollution and Environmental Damage Control at the Kebumen Environment, Forestry, and Park Agency (DLHKPP), Endah Dwiyantiningsih, said that the AMDAL submitted by PT Semen Gombong was not approved, halting all mining activities in the area.

“With the AMDAL rejected, the cement investment will not proceed under the current circumstances,” Endah told Indonesia Business Post on Wednesday, June 18, 2025.

The decision comes at a pivotal moment for the regency, as Kebumen’s newly minted status as a UNESCO Global Geopark mandates stronger protections for geological heritage sites.

Environmental priorities

The appointment of Kebumen as a Global Geopark has elevated the region's significance not just in the realm of conservation, but also in shaping future development policies.

General Manager of the Kebumen Geopark Management, Sigit Tri Prabowo, emphasized that the UNESCO status imposes obligations on the local government and stakeholders to protect and promote Kebumen’s geological assets.

“This designation doesn’t bring instant material gains, but it opens up opportunities to build networks nationally and internationally that can benefit the region’s long-term development, especially in education and sustainable tourism,” Sigit said on Wednesday, June 18, 2025.

As Indonesia grapples with the dual challenge of promoting sustainable development while managing industrial overreach, Kebumen’s case highlights how environmental priorities are increasingly reshaping investment landscapes.

With the cancellation of the cement plant and a growing focus on eco-tourism and conservation, Kebumen could serve as a model for balancing natural heritage with long-term economic strategies.

Moratorium

The project cancellation also aligns with broader concerns voiced by the Indonesian Cement Association (ASI) regarding national overcapacity in the cement sector. ASI chairman Lilik Unggul Raharjo has renewed calls for a nationwide moratorium on the development of new cement plants.

Lilik said that Indonesia's installed cement production capacity reached 119.9 million tons in 2024, while domestic consumption lagged at only 64.9 million tons leaving the industry with an average utilization rate of just 56.5 percent.

“This excess capacity is unsustainable. It affects operational efficiency, job creation, and investor confidence. We need stronger regulations, including a possible revision of Presidential Regulation No. 49/2021 on investment business sectors,” Lilik said as quoted on Sunday, June 15, 2025.

Currently, the moratorium is only partially enforced through the Online Single Submission (OSS) system, but ASI is urging for a more formal regulatory approach through legal revisions and economic stimulus packages.