Indonesia full-year growth rate decelerates

Indonesian cement sales increased by 5.6 per cent in 2013, less than half the rate of growth of 14.5 per cent the year before, due to slower demand particularly in outer Java.

Domestic cement sales for the January-December 2013 period reached 58Mt, according to the latest data from the Indonesian Cement Association (ASI). Including imports sales reached 59.5Mt.

In Java, sales growth slowed to 7.7 per cent compared to a 14. 6 per cent increase in 2012. “The growth fell drastically in outer Java. It was possibly caused by the falling of commodity, coal, and rubber prices which automatically slowed the economic growth. It also showed a decline on people’s purchase power,” ASI chairman, Widodo Santoso, told local press.

Cement sales in Sumatra in 2012 grew by 8.9 per cent, but only reached 1.4 per cent in 2013.?In Kalimantan, consumption rose by 21 per cent in 2012 and fell to 7.6 per cent in 2013. In Sulawesi,  consumption in 2012 advanced 16.6 per cent while in 2013 only a 3.9 per cent increase was achieved. 

Sales growth in Nusa Tenggara and Bali in 2012 reached up to 14 per cent and increased 2.9 per cent in 2013. Eastern Indonesia also witnessed a sales slump with relatively flat growth in 2013 compared to a 50 per cent increase the year before.

On a brighter note, December 2013 sales advanced by 3.33 per cent to 5.28Mt compared to the same period of the previous year.