"I have asked them (the management of PT Semen Gresik) to conduct a feasibility study on the construction of a cement factory there," he said at his office here on Friday.
The area needs a cement factory in line with the rapid economic activities there, he said adding a large lime deposit is found near a hydro power plant in Wamena.
He said he will study a proposal to grant incentives to Semen Gresik to build a cement factory in Wamena.
"We discussed the proposed incentives with Mr Dwi (PT Semen Gresik President Director Dwi Soetjipto) when he came to my office. I will try (to get the incentives)," he said.
Meanwhile, Dwi Soetjipto said he has applied to the government for incentives to build the cement factory.
He said the company will also build a packing plant in eastern Indonesia at a cost of Rp10 million.
Semen Gresik currently holds 60-70 percent share of cement market in eastern Indonesia covering Nusa Tenggara, Papua and Maluku. In total, cement consumption in eastern Indonesia reached 10 percent of the overall consumption last year.
The most populous Java island consumes more cement than any other parts of Indonesia, reaching 55 percent of the overall consumption in 2011.