Indonesia September sales ahead

Indonesia September sales ahead
Published: 15 October 2015

Tagged Under: Indonesia infrastructure sales 

Indonesia cement sales rose by 2.8 per cent in September, latest data from the Indonesia Cement Association (ASI) shows.

Sales rose to 5.79Mt last month, from 5.63Mt a year earlier. Cement sales had picked up pace in August, following contraction over several months of the year, due to delays in government infrastructure construction.

  "Cement sales for infrastructure have picked up, now it accounts for 23 per cent of our sales up from 20 per cent last year," the Jakarta Globe quoted Agung Wiharto, corporate secretary at Semen Indonesia, as saying. The company now expects overall 2015 sales to increase by two per cent YoY to 61.2Mt.

JP Morgan notes that the September data suggest 6.5 per cent growth in 3Q15 (compared to a five and four per cent decline in 1Q and 2Q, respectively). If growth were to continue at three per cent through the 4Q, FY2015 demand is likely to end up flat YoY versus its forecast of a 2.5 per cent decline, the research house adds.

Going forward, it states that: "More importantly, the growth in September and commentary on Q4 from the industry association (sales likely to increase in 4Q in line with government policy to expedite budget disbursement for infrastructure) provide further support to our 2016 growth assumption (+7 per cent)."