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Indonesian cement demand slowed in 1Q14

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World Cement,

Cement demand in Indonesia experienced a slowdown in 1Q14 (January – March 2014), despite an increase in consumption in March, during which consumption rose by 8.5% y/y to 4.91 million t. According to the Jakarta Post, data released by the Indonesian Cement Association revealed that cement consumption in the country increased by 3.7% to 14.08 million t during January – March 2014, compared to 13.58 million t in the same period a year earlier. However, this was much lower than the 8.6% growth registered in 1Q13.

Cement consumption during the reporting period decreased in almost all regions across the country (by 11.7% in Banten, 2.3% in Central Java and 9.4% in Maluku and Papua). Widodo Santoso, Chairman of the Indonesian Cement Association, stated that the slowdown in cement demand could be partly attributed to bad weather conditions, namely flooding, in January and February. Cement consumption fell by 0.2% in January and rose only slightly, by 2.9%, in February; however, demand in March was much higher. Widodo further commented that the growth in demand seen in March could be sustained throughout the year, predicting that 5 – 6% growth in consumption could be achievable by the end of 2014.

Edited from various sources by Rosalie Starling

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