Cement demand in Indonesia fell to 6.175Mt in September 2020, according to the Indonesian cement association, ASI.

Demand in the key market of Java decreased to 3.37Mt in September 2020 from 3.91Mt in September 2019.  Furthermore, the Sumatra and Sulawesi markets contracted by 3.4 per cent YoY to 1.34Mt and 549,000t, respectively.

However, demand in Bali and Nusa Tenggara expanded by 5.9 per cent YoY to 345,000t. Maluku and Papua consumption increased by 4.8 per cent to 196,000t. On Kalimantan 375,000t of cement were sold.

In the January-September 2020 period, cement consumption decreased nine per cent YoY while cement production has fallen by nine per cent YoY to 4.3Mt. In September alone, output from Indonesian plants reached 0.6Mta.

Widodo Santoso, ASI chairman, said that the drop in demand could reach 10 per cent by the end of the year. "Domestic consumption growth is unlikely to be positive in 2020. There are several cement factories that have stopped production because their stocks are full to match market demand," he said.