Facing an oversupply challenge

Published 08 March 2018

Indonesia’s cement market saw a significant expansion in 2017 despite economic woes. While the country’s property market performs below par, cement producers are pinning their hopes on the government’s ambitious infrastructure development programme to avert the threat of oversupply going forward. By the Indonesian Cement Association and ICR Research, UK.

Faced with an oversupply and a stagnant housing market, Indonesia’s cement producers are pinning their hopes on the

government’s IDR357tn infrastructure budget that includes 2560km of new roads and 1000km of toll roads

as well as urban and national rail networks

The Indonesian cement industry has been extremely active in the last few years, including in 2017 when domestic sales increased 7.7 per cent YoY to 66.3Mt and export sales advanced by 84 per cent YoY to 2.95Mt. In 2016 domestic and export sales volumes reached 62Mt and 1.6Mt, respectively.

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