Indonesia’s domestic cement consumption rose 6.6 per cent last year to 34.17Mt, data from the Indonesian Cement Association showed, beating an industry forecast for around five per cent growth.
The increase in sales was helped by lower interest rates, which provided a boost for Indonesia’s residential market, as well as construction of infrastructure projects.
Southeast Asia’s largest economy has been trying to overhaul its infrastructure, such as ports, airports and toll roads, in a bid to prop up economic growth and cut unemployment.
The data showed cement consumption in December grew by 5.3 per cent to 3.13Mt from a year ago.
Domestic sales by Semen Gresik, Indonesia’s largest cement producer, rose by 1.6 percent in 2007 to 15.17Mt, underperforming the pace of the overall industry.
Some industry experts expect Indonesia’s cement consumption to expand by around eight per cent this year, as the country continues to push for more infrastructure projects.
These projects include a 1000km toll road across the main island of Java.