In the first two months of this year, Indonesia's cement sales increased by 0.2% to 4.54 million tons compared with 4.53 million tons in the same period last year, which was much lower than expected target of 4% to 5%.
Cement sales growth slowed last month due to several factors, including high rainfall and flooding in several areas. In addition, investment outside Java has not yet recovered. As a result, cement producers hope that several major projects to absorb large amounts of cement will begin to be implemented this month.
Recently, Widodo Santoso, general chairman of Indonesian Cement Industry Association (ASI), stressed that in February this year, Indonesia's national cement sales were still stagnant, and sales growth only occurred in Java, Bali and Nusa Tenggara. "On the contrary, cement sales in Sumatra, Kalimantan, Sulawesi and the eastern part of the country dropped sharply by more than 8%."
According to the Indonesian Cement Association, cement sales in Sumatra fell 5.7% to 976000 tons, Java rose 4.9% to 2.51 million tons, Kalimantan 296000 tons (down 8.2%) and Sulawesi 369000 tons (down 12.7%). Bali and Nusa Tenggara sold 270,000 tonnes each (up 18%) and Maluku and Papua sold 120,000 tonnes each (down 5.9%). By February this year, Indonesia's cement sales fell by 1.1% to 9.71 million tons, while cement exports rose sharply to 78,000 tons.
He admitted that cement producers are worried about the development of sales this year, especially as the cement industry is facing a problem of overproduction, which is made worse by the operation of several new cement plants. Uch as the semen Conch plant in Kalimantan and Manokwari .
He stressed that in the middle of this year, Semen Padang will operate the new cement plant, followed by Semen Baturaja's new cement plant in South Sumatra. "On the other hand, the demand for cement in the whole country has not yet increased. We hope that the infrastructure funds in various regions can be realized immediately so as to implement the infrastructure construction activities. We also place great hopes on the construction of millions of houses."
Last year, Indonesia's cement industry actively produced 92.7 million tons and is expected to exceed 100 million tons this year, while last year's national cement sales reached 62 million tons or stagnated compared with 2015.
The Indonesian Cement Industry Association predicts that domestic cement sales in Indonesia will grow by 4% to 5% this year, and if the target is not met, the overcapacity of the cement industry will become worse and worse.
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