Santoso added that there has been an increase in both infrastructure and property projects after Joko Widodo won the 2014 presidential election.

As usual, most cement was absorbed by the island of Java. In September 2014 a total of 3.26 million tons of cement was sold on Java (a 4.2 percentage point growth from the same month last year). On Sumatra 1.18 million tons of cement was sold (a 12.3 percentage point growth from the same month last year). The only island or region that showed a steep decline in cement demand was Bali. This decline was caused by the recent completion of the new Bali Toll Road.

ASI expects that total cement sales in Indonesia will grow about five percent (y/y) to 61 million tons in 2014.

The dominant market leader in Indonesia’s cement industry is Semen Indonesia which controls a 44 percent market share, followed by Indocement Tunggal Prakarsa (30.2 percent), and Holcim Indonesia (14.6 percent).

Due to various government infrastructure projects that are ready to start (for example the Giant Sea Wall project in Jakarta), cement consumption is expected to grow further in the years ahead. However, due to the relatively high benchmark interest rate of Bank Indonesia (7.50 percent), growth in the country's property sector has somewhat slowed.

Indonesian Cement Sales 2008-2014:

 Year    Cement Sales
   YoY Growth
 2014        61 million¹         +5.1%
 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             -

¹ forecast
Source: Indonesia Cement Association (ASI)