Indonesia Jan-November 2012 sales rise 15%

Indonesia's cement sales have continued their upward trend, with domestic consumption having risen 15 per cent in the first 11 months of 2012, thanks to the country's infrastructure and property sectors.

Cement sales rose to 49.9Mt between January-November 2011, state-owned cement producer Semen Gresik reported on its website on Friday citing data from the Indonesian Cement Association (ASI).

"Increases in cement consumption were driven by the property and infrastructure sectors, as well as retail sales," said Agung Wiharto, Semen Gresik's co rporate secretary, as quoted by Investor Daily.

Regions outside Java recorded rapid growth, with cement consumption in Maluku and Papua rising 54 per cent to almost 1.1Mt from 713,876t last year.

Agung said the implementat ion of the Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI) would shift substantial demand for cement outside Java, particularly to eastern Indonesia - Papua, Maluku and East and West Nusa Tenggara.

Semen Gresik, which will rebrand itself as Semen Indonesia, has two subsidiaries in Semen Padang and Semen Tonasa. The three companies sold 20.4Mt of cement during in the January-November period, up 14 per cent from a year earlier. The units account for 41 per cent of the country's cement market.

ASI's data showed that cement exports dropped 82 per cent so far this year, as the country's domestic production base seeks to satisfy local demand.

Urip Timuryono, an industry observer and former ASI chairman, said that cement consumption this year could top 56Mt, up from last year's 48Mt.