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Indonesia’s cement sales growth slows

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World Cement,

Domestic cement sales in Indonesia rose 3.4% y/y in the January – November period to 54.6 million t, according to the Indonesia Cement Association (ASI). Indonesia Investments reports that the election year – and the associated uncertainty that goes with that – together with higher interest rates, low commodity prices and weakening purchasing power have all contributed to the slowdown in growth this year compared to the 5.6% achieved in the full year 2013. This is in line with slowing GDP, which recorded its slowest pace in five years in 3Q14 at 5.01%.

With the new government in place and a series of infrastructure projects planned, the forecast for cement sales in 2015 is more positive. Construction is expected to grow by 16% next year, according to the Indonesia Builders Association.

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