The Indonesian Cement Association (ASI) has reported that cement sales in September 2016 fell by 3.3 per cent to 5.64 MT compared to August 2016. It blamed the decline on lower demand from the local housing industry. Cement sales fell sharply in Java, Sumatra and Kalimantan, while eastern parts of Indonesia, including Sulawesi, Maluku and Papua, saw an increase in sales, according to the Jakarta Globe.
“Weakening sales may be due to the lower demand from houses and apartments. Demand from infrastructure projects has been picking up since the second quarter of 2016, but still can’t make up for the lack of demand from the property sector,” said ASI chairman Widodo Santoso.
National cement sales rose by 2.95 per cent year-on-year to 44.7 MT in the first nine months of 2016 and the ASI expects sales growth of 3-4 per cent for 2016. However, cement producers fear that this growth rate will be insufficient to sustain investments in new cement plants. The ASI says that cement production in Indonesia has exceeded demand by more than 30 per cent.