Indonesia’s cement markets contract 2% in June

Cement sales in Indonesia slipped two per cent to 5,438,865 in June 2022 from 5,551,489t in June 2021, according to the Indonesian cement association, ASI.

East Indonesia, the country’s smallest market, was the sole province to record an uptick in sales, which increased five per cent YoY to 194,192t in June 2022 from 184,957t. Java, the largest market, saw a 0.8 per cent YoY decline in sales to 2,942,056t in June 2022 from 2,967,079t while Sumatra recorded a 1.1 per cent drop in sales to 1,165,688t from 1,179,024t. Sulawesi sales decreased to 531,154t from 540,442t over the same period, while on Kalimantan, sales were down 5.5 per cent to 335,349t in June 2022 from 354,876t in the year-ago period. However, the largest market contraction was reported in Nusa Tenggara where there was a 16.8 per cent drop in sales to 270,446t from 325,110t.

In terms of supply, Indonesian cement producers manufactured 5,196,488t of cement and 3,964,262t of clinker, representing decreases of 7.7 and 15.3 per cent, respectively when compared with June 2021. In the year-ago period, 5,631,891t of cement and 4,679,841t of clinker were produced.

January-June 2022
In the January-June 2022 period domestic sales in Indonesia edged up by 1.2 per cent YoY to 29.361Mt from 29Mt between January-June 2021.

The Sulawesi market reported the largest increase, at 8.1 per cent YoY, to 3.129Mt from 2.895Mt in the year-ago period. East Indonesia saw demand rise by 7.7 per cent YoY to 1,057Mt in the 1H22 from 0.981Mt in the 1H21. In Kalimantan sales edged up by 2.1 per cent to 1.884Mt in the 1H22 from 1.845Mt in the 1H21 while in Java market sales saw an uptick of one per cent to 15.58Mt from 15.421Mt. However, Sumatra’s market contracted by 1.6 per cent to 6.249Mt in the 1H22 from 6.384Mt in the year-ago period. In Nusa Tenggara sales were down 3.1 per cent YoY to 1.463Mt in the first six months of 2022 from 1.51Mt in the 6M21.

Domestic producers supplied 30.13Mt of cement and 26.33Mt of clinker in the first half of 2022. Compared with a 1H21 volume of 30.496Mt, cement production was down 1.2 per cent while clinker production reported a 3.8 per cent YoY drop from 27.358Mt.