Indonesian cement consumption sees 4% rise in March

Cement consumption in Indonesia increased by four per cent YoY in March 2017 to 5.02Mt following flat sales volumes in the first two months of the year. The increase is attributed to a sharp rise in demand in Central Java and East Java.

"Cement producers are somewhat relieved to see increasing demand for cement  after stagnant months of January and February. The high demand for Java pushed up the rate of consumption," commented Widodo Santoso, chairman of the Indonesia Cement Association (ASI).

Cement consumption on Java increased by eight per cent to 8.27Mt, driven by a 16 per cent rise in Central Java and 21 per cent in East Java. Mr Santoso said this sharp rise in local cement consumption indicates a recovery in demand from property projects and a stable demand from infrastructure projects. "Construction of toll roads and dam projects plus the housing starts have increased, especially since  the rainy season starts to end”, he told Bisnis Indonesia.

For the first quarter of 2017, domestic demand rose by about one per cent to 14.75Mt, data from the ASI reveals. For the full year, consumption is expected to increase by 5-6 per cent, in line with the  government's economic growth target.