Indonesian: expected sales rebound ahead

Indonesian: expected sales rebound ahead
Published: 11 December 2014


Indonesian cement demand growth is expected to slow in 2014 but sales are anticipated to rebound next year as new projects get underway.

For full-year 2014 the Indonesian Cement Association (ASI) expects sales to rise by four per cent, down from the 5.8 per cent achieved last year. The slowdown has been attributed to regional and national elections delaying infrastructure projects, high interest rates and weakening purchasing power.

Forecasts for Indonesian cement sales in 2015 are more positive with the ASI predicting an increase of six per cent YoY. The new reform-minded led government led by Joko Widodo is expected to enhance infrastructure development, such as the Trans Sumatra, Medan-Kuala Namu, and Manado-Bitung toll roads, as well as a series of new (or renovated) seaports across the archipelago.

Indonesian cement sales rose by 3.4 per cent YoY during the first 11 months of the year to 54.6Mt, according to latest ASI data.