Indonesian producers increase exports

Cement exports from Indonesia increased in July as domestic demand slows and new capacity comes on-stream.

Cement exports increased by more than 10 times to 95,000t in July from the same month last year, cement maker Semen Indonesia reported, citing data from the Indonesian Cement Association (ASI). With new plants coming on-stream, producers have been able to ship their products abroad.

Industry commentators have pointed to June’s fuel price increase as a factor in slowing domestic consumption. Demand stalled as rising inflation eroded consumer purchasing power and slowed investment, curbing the number of projects needing cement.

Indonesia’s annual cement production capacity was at 64.5Mta at the end of July, up from 60.5Mt seven months earlier, according to ASI information. The association expects domestic cement sales to grow by eight per cent in 2013 to 60Mt following two years of double-digit advances.