Demand for cement in Indonesia fell eight per cent to 17.3Mt in the first quarter of 2009 compared with the same period last year.
Slow disbursement of IDR12.2trn (US$1.2bn) in stimulus the government pledged for the infrastructure sector was blamed for the decline cement consumption.
Unless the stimulus is disbursed immediately cement consumption in the country will continue to decline, the association of cement companies said.
Producers may decide to slash production in the second half of this year and new investment projects being planned may no longer be considered feasible, association chairman Urip Timuryono said.
Urip said property and government infrastructure projects have always been the largest consumers of cement in the country.