Indonesian cement producers request the government not to issue new permits for the construction of cement plants in Indonesia. Such a moratorium should be put in place until at least 2019 as the nation's existing cement producers fear further falling profit due to the structural cement oversupply. Indonesia's total installed cement production capacity has now reached 92 million tons (per year), while domestic cement demand is expected to reach 65 million tons only in full-year 2016.

Read more ›

Domestic cement sales in Indonesia climbed 3.1 percent year-on-year (y/y) to 29.48 million tons in the first half of 2016. Widodo Santoso, General Chairman of the Indonesian Cement Association (ASI), said rising cement demand in Indonesia is particularly supported by the construction of power plants, smelters and other infrastructure projects outside the island of Java. However, he added that the cement sales growth figure in H1-2016 is slightly below the target of ASI.

Read more ›

Cement exports from Indonesia have surged sharply in the first five months of 2016. Rising cement export is a good strategy to tackle the domestic oversupply of cement in Indonesia. Due to the influx of new cement producers as well as the expansion programs of existing cement producers in Southeast Asia's largest economy, the nation's cement production capacity has nearly reached 100 million tons per year, while domestic demand may only reach 65 million tons in 2016.

Read more ›

Indonesia's cement sales rose 6.2 percent (y/y) to 5.1 million tons in May 2016, the highest monthly figure so far in 2016. As the property sector of Indonesia remains subdued amid sluggish demand and development, growth in cement sales is regarded to be the result of infrastructure development. Data from the Indonesian Cement Association (ASI) show that Indonesia's cement sales total 24.1 million tons in the first five months of 2016, up 3.9 percent (y/y) from sales in the same period one year earlier.

Read more ›

The cement manufacturers in Indonesia are in need of participating in a cement price war in order to gain market share in Southeast Asia's largest economy. According to analysts a price war cannot be avoided due to the influx of new players in Indonesia's cement industry. This influx causes rising cement production capacity in Indonesia, while domestic cement demand remains sluggish. The new and smaller cement players offer low prices to gain market share. The bigger and long-term established cement companies may need to join in this price war in order to defend their market share.

Read more ›

Cement sales in Indonesia rose 3 percent year-on-year (y/y) to 4.45 million tons in February 2016 from the same month one year earlier. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said Indonesia's rising cement sales were caused by the ongoing development of infrastructure projects across the archipelago. Three regions showed a marked increase in cement sales last month: Sumatra (+16.5 percent y/y to 2.13 million tons), Sulawesi (+33 percent y/y to 841,000 tons) and the Moluccas & Papua (+31 percent y/y to 125,000 tons).

Read more ›

The start of infrastructure projects in Indonesia - ranging from roads, bridges, power plants, smelters, and public housing - has managed to boost cement consumption in the first month of 2016. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said domestic cement consumption in Indonesia rose 4.4 percent (y/y) to 5.14 million tons in January 2016 from the same month one year earlier. Highest growth in consumption occurred in Sumatra (+15.8 percent y/y to 1.1 million tons), Java (+5.3 percent y/y to 2.9 million tons) and Sulawesi (+19 percent y/y to 424,000 tons).

Read more ›

Indonesia's cement sales totaled 61 million tons in 2015, up 1.8 percent from sales in 2014. Although the pace of growth is limited, the final result was well received by stakeholders and policymakers because in the first half of 2015 the nation's cement sales growth still stood at -1.5 percent on a year-on-year basis due to a delay in government-led infrastructure development. In the second half of the year there occurred a surge in infrastructure development projects, hence triggering higher cement sales.

Read more ›

The push for government-led infrastructure development across Indonesia, which started from mid-2015, is expected to cause rising cement sales in Indonesia in 2016. The Indonesian Cement Association (ASI) expects to see a 5 percentage point growth in Indonesian cement sales to 64.5 million tons this year (from an estimated 61.5 million tons in 2015). However, ASI Chairman Widodo Santoso emphasized that a delay in government spending could jeopardize achieving the sales projection.

Read more ›

Cement sales in Indonesia climbed 4.7 percent (y/y) to 6.1 million tons in November 2015 supported by rising cement sales in all regions apart from the Moluccas and Papua. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said domestic cement demand rose sharply in November despite seeing some rainfall (which usually leads to delays in development of infrastructure and other construction projects). Santoso says this rise is due to improved government spending on infrastructure projects.

Read more ›

According to data from the Indonesian Cement Association (ASI), domestic cement sales have fallen 5.8 percent to 3.3 million tons in August 2013 (from the same month last year). Being an important indicator of economic expansion (as cement sales inform about the development of property and infrastructure projects in the country), these lower cement sales confirm the slowing pace of economic growth in Indonesia. Compared to July 2013, cement sales in Indonesia fell by a massive 32 percent.

Read more ›