Sharp rise in Indonesian cement demand in June

Cement consumption in Indonesia rose by 29.2 per cent YoY to 4.86Mt in June 2020, according to Widodo Santoso, chairman of the Indonesian Cement Association (ASI). "This is because last year there were the effects of Ramadan and Eid, so consumption was limited," he said.

The easing of large-scale social restrictions (PSBB) in a number of regions and the relaxation of credit disbursement by multifinance companies led to an increase in people's purchasing power.

However, the rise in June is not a guarantee that demand will continue to advance in the 2H20. "We know that there is a cut in infrastructure spending from the Government due to Covid-19 situation. In addition, this year's economic growth is also predicted to decline. This will affect the property and construction sectors," Mr Santoso said. He also sees the expansion of clinker and cement exports as the only way to increase cement sales. As of June 2020, cement and clinker exports surged by 29 per cent YoY to 3.73Mt.