Cement output in Indonesia falls 22% in November, affecting exports

The total Indonesian production of cement and clinker in November 2021 reached 11.45Mt, down 22 per cent from 14.67Mt when compared with October 2021, according to the Indonesian Ministry of Industry. Director of the Cement, Ceramics and Non-Metal Mineral Processing Industry, Ignatius Warsito, attributed the decrease in output due to issues with the supply of coal.

"The decrease in monthly production will reduce the specific utilisation for that month. The decrease in production will also have an impact on the decline in exports because when the need for coal is not sufficient for normal production, cement producers will prioritise their production to meet domestic cement needs first," he explained.

Exports from Indonesian declined by 53 per cent MoM to 505,420t in November 2021 from 1.06Mt in October 2021.

The domestic cement market required 5.94Mt of cement in November, down 2.1 per cent, while consumption in the January-November period expanded 4.7 per cent YoY to 59.43Mt, according to the Indonesian cement association, ASI. The association’s Chairman Widodo Santoso said that apart from the stagnating supply of coal, the decline in production may also be caused by floods, landslides and earthquakes in several areas in Indonesia.