Total cement sales (domestic sales + exports) of Semen Indonesia, the biggest producer of cement in Indonesia, grew 11.8 percent (y/y) to 2.91 million tons in October 2017.

In the January-October 2017 period the company's sales accumulated to 23.69 million tons, up 9.3 percent (y/y) from total sales realization in the same period one year earlier.

However, when we compare the operational performance of Semen Indonesia with overall cement sales and exports in Indonesia in October 2017, then Semen Indonesia's performance is below the national average. Whereas total cement sales in Indonesia rose 12.5 percent (y/y) in October, Semen Indonesia only managed to post a 8.8 percent growth pace.

October is usually a month in which cement sales in Indonesia peak before declining in the next two months when weather conditions tend to disturb progress with property and infrastructure projects, while December is a holiday period (Christmas and New Year celebrations).

Meanwhile, the average price of cement fell in October by around 1.5 percent. Despite rising cement demand, the price fell due to the structural oversupply situation on the Indonesian market. Indonesia's total annual installed cement production capacity has now risen to 106.3 million tons, while domestic cement demand may not exceed 65 million tons in 2017. Moreover, the nation's overall production capacity will rise further as several existing cement players - including Semen Indonesia - continue to invest in production expansion.

Indonesian Cement Sales 2008-2016:

Year Cement Sales
2016     62 million  +1.6%
2015     61 million  +1.8%
2014     60 million  +3.3%
2013     58 million  +5.6%
2012     55 million +14.6%
2011     48 million +20.0%
2010     40 million  +4.2%
2009    38.4 million  +1.1%
2008     38 million      -

Source: Indonesian Cement Association (ASI)