Indonesian market stable, export sales see hike in September

Cement consumption in Indonesia remained largely stable at 6,728,921t in September 2019 when compared with September 2018, according to the latest data by the country’s cement association, ASI.

Demand in the key market of Java remained level at 3,841,656t with higher sales on West Java (1,141,159t, up 9.6 per cent) and Yogyjakarta (119,297t, up nine per cent) offset falling deliveries in Jakarta, Banta and Central Java. On Sulawesi sales were up 2.3 per cent YoY to 575,209t and in east Indonesia, the country’s smallest market, consumption rose by 28.8 per cent to 171,274t. Kalimantan reported the largest drop in deliveries, down five per cent to 396,673t. In Nusa Tenggara and Sumatra consumption fell by 3.9 and 3.7 per cent, respectively. Sumatra is the country’s second-largest market with demand at 1,409,672t while in Nusa Tenggara offtake slipped to 334,437t.

In terms of total exports, around 572,623t of cement and clinker was shipped to foreign customers, representing an increase of 30.9 per cent YoY. Clinker exports rose 61.6 per cent YoY to 440,158t, but cement sales declined by 19.8 per cent to 132,465t.

January-September 2019
Between January-September 2019 Indonesian cement demand slipped 2.1 per cent YoY to 48.761Mt from 49.781Mt in the 9M19. The country’s three largest markets – Java, Sumatra and Kalimantan –  all saw deliveries fall. In Java consumption declined by 2.5 per cent to 27.31Mt while Sumatran demand saw a 5.6 per cent drop to 10.118Mt. In Kalimantan offtake slipped 1.1 per cent to 3.125Mt. A modest rise of 1.6 per cent was reported in Nusa Tenggara where consumption reached 2.821Mt and in Sulawesi consumption advanced by 3.2 per cent to 4.159Mt. East Indonesia reported an 11.9 per cent rise in demand to 1.227Mt.

Exports were up 15.4 per cent to 4.787Mt in the first nine months of 2019 with clinker exports rising 26.7 per cent to 3.834Mt. However, cement exports declined 15.1 per cent YoY to 0.953Mt.