PT Semen Gresik cement sales in May were up 9.7 per cent at 1.42Mt from 1.29Mt a year earlier, with strong domestic sales offsetting a fall in exports, the Indonesian Cement Association (ASI) reported. Semen Gresik sold 1.23Mt at the local market in May, up 13.6 per cent from 1.08Mt in May last year, the ASI report said. Its cement exports, however, dropped 10 per cent to 191,136t from 212,639t. Among its three operating units, PT Semen Tonasa reported a 20 per cent decline in sales volume to 214,368t, Semen Padang sales continue to improve. The Semen Gresik group has capacity to produce 16Mt a year. Last year, it produced 15.6Mt, nearly half total national output.
Last year, Indonesia consumed 30.04Mt of cement, up from 27.54Mt in 2003. Analysts and industry executives expect demand for cement in the country to increase by between 5-10 per cent this year.