Increasing cement consumption in Indonesia

Indonesia has seen a rise in cement consumption despite the country’s GDP growth slowing down in 3Q13 y/y.

Domestic cement sales

• October cement sales rose by 7.9% y/y to 5.58 million t.
• Domestic sales in Indonesia grew 5.8% y/y from 44.6 million t in January to October 2012 to 47.2 million t in the same period in 2013.

The rising cement sales in October 2013 are due to an increase in housing and infrastructure projects, which accounted for almost all of the country's cement demand. The island of Java has the highest cement consumption rate, accounting for 57% of the country’s cement demand in October. Cement sales in Sumatra also rose rapidly to 1.15 million t.

Outlook

Last month the Indonesia Cement Association (ASI) lowered its prediction for this years cement sales from 61 million t to 58 million t due to the sluggish economy and poor exchange rate in recent months, despite the small pick up in demand in October 2013.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldcement.com/asia-pacific-rim/18112013/increasing_cement_consumption_in_indonesia_423/