Indonesian August sales higher

Indonesian August sales higher
11 September 2014

Indonesia cement sales jumped 37.4 per cent YoY to 4.7Mt in August 2014 on the back of higher demand from the property and infrastructure projects.

Widodo Santoso, chairman of the Indonesian Cement Association (ASI), said that the development of smelters, power plants, apartments, hotels, and social housing has been key to improved cement sales last month. However, the 37.4 percentage point growth was also caused by fewer working days in August 2013 as the Idul Fitri holiday fell in that month.

Cement sales rebounded in August after a 25 percentage point decline in the previous month as this year the Lebaran holiday fell in July.  Moreover, uncertainties were still lingering in Indonesia during July due to uncertainty about the result of the 2014 presidential election, resulting in the delay of some projects

Domestic cement demand increased most on the islands Java, Kalimantan and Sumatra, by 47, 44 and 32.8, respectively.

The ASI targets a five per cent YoY growth of cement sales in 2014 to 61Mt. Santoso expects that this target can be achieved if cement sales continue to grow in the last four months of the year. In the January-August 2014 period, cement sales in Indonesia have grown 2.45 per cent to 37.5Mt from the same period last year.

Published under Cement News