Cement sales in Indonesia totalled 40.7Mt in 2010, exceeding the 40Mt target set by the Indonesian Cement Association.
Favourable macro economic indicators and stable bank interest rates contributed to strong sales in 2010, ASI chairman Urip Timuryono said.
Timuryono noted that sales were dominated by property projects accounting for 60 per cent of the total sales of cement in the country with the infrastructure sector remaining a minor consumer.
Sales to infrastructure project was low as realization was only 30 per cent of the fund allocated by the government for infrastructure construction in 2010, he said.
In 2010, the country’s cement factories operated at 80-90 per cent of their installed capacity of 44Mt.
This year the capacity is expected to expand with the operation of the new factory of PT Semen Andalas after its old plant was destroyed by tsunami in Aceh in 2004.
Urip predicted sales this year would climb by around seven per cent to 44Mt.