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Indonesia’s cement sales grew 17% in 2011

World Cement,

Indonesia’s cement association (ASI) has reported that the country’s cement sales grew 17% in 2011, with total domestic sales reaching 47.9 million t.

The association’s Chairman, Urip Trimuryono, attributed the result to Indonesia’s strong economic growth last year, as well as a decline in exports, which led domestic suppliers to prioritise the domestic market. The country’s cement exports dropped 59.1% to 1.2 million t.

The association has forecasted a 6% rise in cement sales this year. Teguh Hartanto, an analyst at Bahana Securities, is reported to have said: "We believe the 2012 outlook for cement remains promising, supported by the land-clearing law and continued strong property demand on the back of a continued low interest rate environment."

The positive outlook follows the country’s land acquisition bill, signed in December 2011. It is hoped that this bill will break the infrastructure bottleneck that has been halting the country’s growth.

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