Indonesian cement market stable in August

Cement sales in Indonesia amounted to 6.117Mt in August. This is an increase of 0.1 per cent YoY compared to the 6.111Mt reported a year earlier.

Regional sales remain a mixed bag. The strongest growth was reported in Kalimantan where the development of Indonesia’s new capital, Nusantara, is ongoing. Sales there rose 7.5 per cent YoY in August to 542,788t, up from 505,065t a year earlier. Java, the country’s largest market accounting for 52 per cent of all sales, saw dispatches rise 1.7 per cent YoY to 3.196Mt from 3.142Mt.

Local dispatches in Bali-Nustra rose 2.6 per cent YoY to 377,068t from 367,522t. Maluku-Papua saw a rise of 2.9 per cent YoY, coming in at 201,489t, up from 195,811t. Meanwhile, Sulawesi reported a 15.6 per cent YoY fall in sales to 482,072t from 571,212t. Sumatera reported a contraction of 0.9 per cent YoY to 1.317Mt, down from 1.329Mt.

Bagged sales dominate dispatches in Bali-Nustra, accounting for 93% of total sales volumes, followed by Sulawesi and Maluku Papua at 74 per cent each. Bulk sales are greatest in Java, accounting for 37 per cent of total sales, followed by Kalimantan at 34 per cent. 

Production expands
Cement production in Indonesia rose 6.4 per cent YoY to 6.457Mt from 6.067Mt in August 2023. Clinker production increased 3.3 per cent YoY to 5.296Mt, up from 5.125Mt in August 2023.

Exports drop significantly
In August, cement exports fell a notable 56.1 per cent YoY to 56.327t, down from 165,185t a year earlier. Meanwhile, clinker exports slipped 0.6 per cent YoY to 913,088t from 918,959t a year earlier. Bangladesh remained the key export market in August, accounting for 66 per cent of total exports, followed by Australia (15 per cent) and Taiwan (11 per cent).

January-August sales see uptick
Cement sales in Indonesia in the first eight months of 2024 amounted to roughly 40.8Mt. This is an increase of around three per cent YoY compared to the same period of 2023.