Last month, Indonesia's cement sales increased by 15 percent to 4.65 million metric tonnes compared to cement sales in January last year. Strong GDP growth of over six percent annually in recent years has caused a rise in property development and infrastructure projects. Per capita cement consumption in Indonesia - which currently stands at around 200 kilogram per year - is still one of the lowest in Asia.
Meanwhile, Holcim Indonesia - part of the Swiss-based Holcim Group and Indonesia's third largest cement producer - has signed a contract (valued US $250 million) with German-based TyssenKrupp Polysius to construct the Tuban II factory in East Java. This new factory is expected to commence operations in the first semester of 2015, having a capacity of 1.7 million ton per year. Currently, Holcim Indonesia is in the final stages of establishing its Tuban I factory. This factory should start production in June this year. Together, Tuban I and II cost the company about US $800 million of investments.
According to analysts and data from the Indonesian Cement Association (ASI), cement consumption in Indonesia will increase significantly in the years ahead. Cement production in 2012 totalled 60.6 million tonnes, but this number is expected to increase to 78.5 million by 2016.
|Largest Indonesian Cement
|Indocement Tunggal Prakarsa||33%|
¹ private company