Sales of cement on the Indonesian market fell 3.8 per cent to 2.96Mt in January from 3.09Mt a year before.
The association of cement producers (ASI) attributed the decline to tighter bank liquidity and weak purchasing power of the people.
ASI general chairman Urip Timuryono said property developers are in difficulty to secure fund to build their projects with the tight bank liquidity.
Falling prices of farm commodities like palm oil and rubber have weakened the purchasing power of the people, Urip said.
He said this year there is virtually no new projects planned by property developers as the recession began to bite.
Since October, 2008, many projects have been shelved and work is only in projects already partly completed before the crisis struck, he was quoted as saying by the newspaper Investor Daily.