Sales of cement in Indonesia weakened by 5.3 per cent year-on-year in November 2016, according to a new report from Indonesia Investments. Over the year to November, however, domestic sales were up 2.8% to 56.5 million tonnes (MT).
Domestic cement sales were supported by government investment in infrastructure, as well as drive to increase domestic smelter and power generation capacity. Exports have showed remarkable growth, jumping 52.2 per cent year-on-year in the first eleven months of 2016 to 1.5 MT.
Development of Indonesia’s cement production capacity has outstripped demand and is expected to hit the 100 MT mark in 2016, having grown sharply in recent years. This has put pressure on plant utilisation rates, which are expected to fall to 65 per cent in 2016, according to Indonesia Investments, from 76.9 per cent the year before.