Indonesia: Cement sales increase in Indonesia

Byszheng

Updated Fri, 13 Nov 2015 10:29:40 GMT

Indonesia Investments reports that cement sales were up by more than 10% in October 2015. Figures from the Indonesian Cement Association show a 10.7% y/y increase – up to 6.4 million t – thanks to government investment in infrastructure. Government capital spending in 3Q15 was double what was spent in 1Q15, at US$3.76 billion, and there is more to spend, with reports indicating some 70% of the capital budget remains unspent.

Citing information provided by the Indonesian Cement Association, Indonesia Investments reports that projects such as the Trans-Sumatra highway, contributed to a 17% rise in cement sales on Sumatra in October, have benefited cement sales across the country, with the exception of Kalimantan where sales contracted.

Bulk sales exceeded bagged in September and October, indicating that cement is being used for bigger projects. A further increase in sales is expected in the last quarter of the year, while total sales are expected to come in at 63 million t for 2015, a 5% increase y/y. Cement production capacity currently stands at 78 million t.