Indonesia first-quarter sales rise 8.6%

Indonesian cement sales rose by 8.6 per cent in the first quarter of 2013 to 13.6Mt, latest data from the country’s largest producer, Semen Indonesia, shows citing figures from the Indonesian Cement Association (ASI).

While cement demand in the Southeast Asian country continues an upward climb, cement sales in March only rose by 3.5 per cent YoY to 4.5Mt – the slowest pace in seven months.

Some analysts attributed the slowing sales to delays in the government’s infrastructure projects. In the first three months this year, the government disbursed only IDR10.4trn (US$1.1bn) of the IDR184.4trn it earmarked for infrastructure spending, according to Finance Ministry data.

The Public Works Ministry said last month that only 10 per cent of the 650km Trans-Java toll road network has been completed so far, due to problems in land acquisition.

Meanwhile, other analysts believe the overall slowdown in cement sales to be temporary. “Purchasing power would remain high this year, due to increasing wages and low bank interest rates,” Eric Alexander Sugandi, an economist at Standard Chartered Indonesia, told the Jakarta Post.

High-rise building projects are also expected to spur demand as ?property development companies have profited from booming residential properties, amid low-interest lending and high demand.