Cement sales in Indonesia amounted to 5.619Mt in December, a drop of 11.5 per cent YoY compared to the 6.350Mt reported a year earlier, according to the Asosiasi Semen Indonesia (ASI).
Cement demand contracted across all regions as a devastating tropical cyclone hit the country. All regions noted double-digit declines in December, except, Sumatera, which saw consumption slip 1.5 per cent YoY to 1.343Mt. Java, the country’s largest market, accounting for 50 per cent of all sales, saw dispatches shrink 12 per cent YoY to 2.187Mt from 3.202Mt in December 2023. Elsewhere, Kalimantan reported a 14.9 per cent YoY decline to 518,148t. Sulawesi noted a 20 per cent YoY decline to 439,914t. Bali-Nusa Tenggara saw demand drop 14.3 per cent YoY to 325,058t and Maluku-Papua recorded an 11.5 per cent YoY fall to 175,921t.
Domestic cement production fell 16.1 per cent YoY to 5.574Mt, from 6.646Mt in December 2023. Clinker production decreased 11.7 per cent YoY to 4.776Mt, down from 5.411Mt previously.
In December cement exports dropped 65.8 per cent YoY 28,000t, down from 81,780t a year earlier. Meanwhile, clinker exports rose 8.3 per cent YoY to 902,145t from 833,029t a year earlier.
Full-year 2024
Cement sales in Indonesia 2024 amounted to 64.887Mt, a decrease of 0.9 per cent YoY compared to the 65.501Mt recorded in 2023. Java accounted for just over half of all sales during the period (52 per cent) followed by Sumatera (22 per cent) and Kalimantan (9 per cent). Bagged sales were down 3.1 per cent YoY to 44.772Mt, accounting for 69 per cent of total sales in 2024, bulk sales rose 4.4 per cent YoY to 20.115Mt.
Cement production amounted to 67.570Mt in 2024, up one per cent YoY from 66.924Mt in 2023. Clinker production amounted to 57.091Mt in 2024, down 2.8 per cent YoY from 58.709Mt in 2023.
Total cement and clinker exports amounted to 11.9Mt in 2024, up 10.1 per cent YoY, with Bangladesh (66 per cent), Australia (15 per cent) and Taiwan (11 per cent) the main export destinations. Cement exports fell 22.8 per cent YoY to amount to 998,000t, while clinker exports rose 14.6 per cent YoY to 10.9Mt.
Cement capacity in 2024 was 119.9Mta, unchanged from 2023, with a capacity utilisation rate of 56.5 per cent, up from 55.8 per cent in 2023 and the highest rate since 2021. Clinker capacity was 83.4Mt, unchanged from 2023, with a capacity utilisation rate of 68.5 per cent, down from 70.4 per cent in 2023.
Outlook
Looser monetary policy, lower inflation risks, reduced political uncertainty and increased government spending, combined with accelerating economic growth will underpin a return to growth in cement demand in 2025. Indonesia’s cement association is targeting cement consumption to expand 1-2 per cent in 2025. However, it warns of higher cement prices should the transportation fuel subsidy to removed.
