Indonesia's cement industry is gearing up for sales growth in 2025, tackling the challenge of low capacity utilization by consolidating export markets and focusing on domestic construction projects. In 2024, compared with 2023, domestic cement sales decreased by 0.9% to 64.9 million tons, while exports increased by 10.4% to 11.9 million tons, which led to a slight increase in capacity utilization from 2023 to 56.5%, but still did not return to the state before the epidemic in 2019. Lilik Unggul Raharjo, chairman of the
Indonesian Cement Association (ICA), predicts that, driven by the government's "3 million housing project", the domestic cement sales volume is expected to increase by 1% -2% in 2025, with an estimated sales volume of 77 million tons and a corresponding capacity utilization rate of 65%. In 2024, the demand of some major cement markets, including Java, began to decline. For example, the sales volume in Java only slightly decreased by 0.1% to 33.5 million tons, while the market in Kalimantan increased by 11.2%, less than growth rate of 22.1% in 2023, which was mainly affected by the budget cuts for the construction of the capital of Nusantara. Sales in Bali and Nusa Tenggara grew by 3.3% year-on-year in 2024, with Bali growing by 15.8% due to the continued recovery of tourism; sales in other regions such as Sumatra, Sulawesi, Maluku and Papua generally declined.
Despite the global economic slowdown, Indonesian cement exports are expected to remain stable, relying mainly on traditional markets such as Bangladesh, Australia and Taiwan Province of China. At the end of 2024, the total export volume of cement and clinker increased by 10.4% to 11.9 million tons, mainly benefiting from the high demand for clinker in traditional foreign markets. Taufiek Bawazier, Deputy Minister of
Industry, said that restricting new investment was the way for the state to support the existing cement industry without hindering the expansion of production to new areas. Nadi Astuti, Director of the Department of Cement, Ceramics and Non-metallic Mineral Processing Industries, mentioned that foreign investment in new cement plants was currently suspended, and subsequent plans included investment restrictions in draft regulations to restrict new investment in regions with existing cement industries (such as Sumatra, Java, Kalimantan and Sulawesi). Encourage investment in islands without cement industry (e.g. Papua and Maluku). At the same time, the Ministry of Industry is working to identify cement products to reduce imports and enhance the export potential of cement and derivative products, thereby enhancing the overall performance of the cement products industry.
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