Plantation, mining booms give cement market a boost

Plantation, mining booms give cement market a boost
Published: 28 April 2008

The cement market grew 17 per cent in the first quarter, with eastern parts of the country recording the highest growth, a business executive says.

PT Semen Gresik Tbk corporate secretary Sunardi said sales growth reached 36 per cent in Indonesia’s eastern regions, including Maluku and Papua, during the first three months of the year, while markets in Sulawesi and Nusa Tenggara grew 28 per cent.

"For several years, the highest sales growth has not been in Java, but rather in eastern Indonesia. The latest records indicate that Sulawesi and Kalimantan are the two regions with the highest market growths," he told The Jakarta Post on Friday.

The plantation and mining booms are the major factors contributing to the cement market growth outside of Java.

"In Kalimantan and Sulawesi, the current expansion of those sectors has resulted in massive infrastructure development, including the development of roads and bridges," he said.

Although the growth was the highest in eastern Indonesia, Java remains the largest consumer, absorbing 60 to 65 percent of national consumption.

According to the chairman of the Indonesian Cement Association Urip Trimuryono, the total domestic sale of cement during the first quarter was 8.76Mt, with Java consuming 4.72Mt.

Even though the cement market in eastern Indonesia grew by 36 per cent to 233,000kg, he said, the total amount was the smaller than in other regions.

"Sumatra was the second largest consumer with 2.17t, Sulawesi the third with 617,000 kilograms, Kalimantan the fourth with 556,000kg and Nusa Tenggara the fifth with 453,000kg," he said as quoted by on Friday.