Indonesia cement sales up 4.7% in November

Indonesian cement sales rose by 4.7 per cent YoY to 6.1Mt in November 2015, due to improved government spending on infrastructure projects.

Widodo Santoso, chairman of the Indonesia Cement Association (ASI), said domestic cement demand rose sharply in November despite seeing some rainfall (which usually leads to delays in development of infrastructure and other construction projects). Mr Santoso says this rise is due to improved government spending on infrastructure projects.

The increase was supported by rising cement sales in all regions apart from the Moluccas and Papua. Growth in cement sales were highest on Sulawesi, Bali & Nusa Tenggara and Sumatra as demand rose due to the start of power plant and smelter construction in these regions.

Year to date, Indonesian cement sales stand at 55.6Mt in the January-November 2015 period, up 1.9 per cent from the same period last year. Mr Santoso expects cement sales to remain strong in the last month of the year, hence full-year cement sales may reach 61.5Mt, up 2.5 per cent YoY from 60Mt  in 2014.