Indonesia’s cement exports surged 40 per cent to 700,000t, while consumption rose 8.8 per cent to 7.58Mt in the first quarter of this year compared with the same period last year.
Producers said macroeconomic stability, a cut in interest rates and improvement in the public’s purchasing power caused the rise in domestic consumption.
Chairman of the Association of Cement Producers Urip Timuryono said many infrastructure projects have been implemented, requiring a large supply of cement the country.
Agro and Chemical Director General Benny Wachyudi said without additional production capacity, the country may face a shortage in supply in the next three years, based on current consumption trends.
Last year, total cement consumption and exports hit 35 million tons, still below the country’s production capacity of 47Mt.