Growth of Indonesia’s cement market weakened in 2015, but prospects for this year are more optimistic with demand expected to significantly improve. ICR spoke to Christian Kartawija, CEO of market leader PT Indocement Tunggal Prakarsa, about the producer’s performance in 2015, his view on cement demand and construction activity in this major southeast Asian nation and the potential for sector consolidation. By ICR Research, UK.
Market performance
ICR: What affected Indonesia’s cement market to see cement volumes fall in early 2015 and then recover in late 2015?
Christian Kartawijaya (CK): Indonesia’s cement market had a lower cement sales growth in early 2015 while it picked up towards the end, due to a late start of our infrastructure projects.
In addition, some ministerial departments are expected to finalise the nomenclature of their organisation, which will enable them to receive the allocation of the government budget to carry out their responsibilities. Following the transfer of power from Susilo Bambang Yudhoyono to Joko ‘Jokowi’ Widodo after the 2014 elections, the new government changed and merged some ministerial departments.
