PT Indocement - February 2019

Cement consumption in Indonesia grew by five per cent in 2018, compared to 7.6 per cent the year before, and is projected to expand by four per cent in 2019, according to PT Indocement. Although consumption in 2019 will continue to be driven by infrastructure projects, and the completion of commercial and residential projects, US policies to increase interest rates and reduce corporate tax have had an impact on the Indonesian economy, warned the company.

Strong bulk cement demand is expected in Sumatera, Greater Jakarta, Central and East Java, but coal prices will remain high and 2019 will almost certainly be impacted by the country’s general election, which is scheduled for 17 April. According to PT Indocement, oversupply will continue for the next few years but at a reduced level.