Indonesia’s cement sales are slowing, yet September reaches a record high

Indonesian cement sales reached an all-time high in September, while sales between January and September reflected an annual increase of 5.3% at 41.58 million t. This fell short of the 7.5% growth witnessed in the first half of the year, despite the monthly record of 5.3 million t sold in September.

Commodity prices and stalled infrastructure projects have contributed to the slowdown in growth, according to the Indonesian Cement Association (ASI). The association anticipates annual growth of 6% by the end of this year, slower than last year’s 14.5%.

Regional and market variations

Java and surrounding areas have experienced growth that is above the national average, with total sales in Java for the first nine months reaching 23.31 million t – up 7.1% y/y. Nusa Tenggara reported 8.6% growth and Kalimantan’s cement sales were also up 7.1%.

Of the total cement sales, the ASI estimates about 25 – 30% goes to infrastructure projects, while the remainder goes to property development and the retail sector. New policies that are likely to come in for interest rates and loans are likely to affect the Indonesian property market, which could affect demand going forward.

Edited from various sources by Katherine Gu