Increased Indonesian government spending, coupled with low energy costs and the recent Bank Indonesia interest rate cut are set to cause significant growth in the country’s construction industry.
Total cement consumption has been predicted to grow by more than 5% in 2016. This follows a rather limited growth of just 1% in 2015.
After a remarkably sluggish first part of 2015, cement consumption rebounded thanks to the commencement of several infrastructure developments, toll roads and dam projects. These will continue to support cement consumption in the midterm as many projects will take years to finish. A fresh boost was also given by the applauded decision by the government to conduct early bids in 2015 for 2016 projects with the aim of speeding up government spending in the current year.