PT Indocement - February 2016
Weak cement demand in Indonesia contributed to a 1.5 per cent decline in revenue for HeidelbergCement’s Asia-Pacific Group in 2015. The group’s cement, clinker and GGBS sales volumes also fell in the region, down by 4.5 per cent to 23.5Mt, compared to 2014. The poor demand is being blamed on Indonesia’s excess cement production capacity putting pressure on prices, and delays in infrastructure programmes. According to the company, disappointing sales volumes are also being attributed to “the margin-orientated policy of our subsidiary Indocement.” Despite growth in sales being recorded in Australia, Bangladesh and India, this failed to compensate for the downturn in Indonesia and Malaysia.