Cement sales in Indonesia amounted to 5.014Mt in June, a drop of 6.3 per cent YoY compared to the 5.353Mt reported a year earlier, according to the Asosiasi Semen Indonesia. Bagged sales accounted for 71 per cent of total sales in June.
All regions except Sumatera and Maluku-Papua reported a contraction in June. Sumatera noted a 0.5 per cent YoY increase in dispatched to 1.114Mt, up from 1.108Mt in June 2024. Maluku-Papua reported a 15.4 per cent YoY increase to 149,480t, up from 129,269t previously.
Java, the country’s largest market, accounting for 53 per cent of all sales, saw dispatches shrink 7.8 per cent YoY to 2.680Mt from 2.906Mt in June 2024. Sulawesi noted a 9.9 per cent YoY decline to 361,187t. Bali-Nustra saw demand slip 0.1 per cent YoY to 335,631t. Kalimantan reported a 20.8 per cent YoY decline to 374,293t, reflecting a slowdown in construction of the country’s new capital.
Cement production in Indonesia rebounded 9.2 per cent YoY to 5.372Mt, from 4.919Mt in June 2024. Blended cement accounted for 3.666Mt or 68 per cent of total production, and OPC the remainder. Clinker production jumped 16.1 per cent YoY to 4.916Mt, down from 4.236Mt previously.
In June, cement exports rose 35.5 per cent YoY 72,746t, up from 53,700t a year earlier. Meanwhile, clinker exports increased 42 per cent YoY to 1.127Mt, up from 793,791t. East Timor was the key destination for cement in June (accounting for 46 per cent of exports), followed by Papua New Guinea (24 per cent), Maldives (16 per cent) and Australia (8 per cent). Bangladesh was the key destination for clinker (accounting for 35 per cent of exports), followed by Taiwan (22 per cent) and Australia (9 per cent).
1H25
Cement sales during 1H25 contracted 2.5 per cent YoY to amount to 27.782Mt, down from 28.486Mt in the same period of 2024.
All regions except Sumatera and Maluku-Papua reported a contraction in 1H25. Sumatera noted a 4.9 per cent YoY increase to 6.295Mt and Maluku-Papua a five per cent YoY rise to 962,301t. Cement sales contracted most in Kalimantan, with a 19.6 per cent YoY decline to 1.991Mt. Java reported a 1.9 per cent YoY fall to 14.552Mt, Sulawesi a 7.9 per cent YoY contraction to 2.243Mt and Bali-Nustra saw a 4.8 per cent YoY decline to 1.739Mt.
Cement production amounted to 28.768Mt in the first half of the year, down 5.8 per cent YoY from 30.534Mt in the same period of 2024. Blended cement accounted for 18.334Mt or 64 per cent of total production, and OPC the remainder. Clinker production amounted to 26.762Mt, up 1.1 per cent YoY from 26.459Mt.
Cement exports amounted to 483,165t in 1H25, down 12.4 per cent YoY, from 551,519t in the same period of 2024. Clinker exports amounted to 6.548Mt, up 21.6 per cent YoY from 5.385Mt previously.
Outlook
After a disappointing first half to the year, the full-year forecast has been revised downwards. Consumption is forecast to contract 3.5 per cent YoY in 2025, adding to the 0.9 per cent YoY contraction reported in 2024. However, cement demand will return robustly in 2026 buoyed by government spending. The IDR3,786.5tn (US$234.39bn) budget for 2026 is 7.3 per cent YoY higher than 2025 spending. Funding for the continued construction of the new capital was also included in the budget, while the government’s house building project aims to construct two million dwellings by the end of 2026. Robust economic growth, cooling inflation and looser monetary policy will also help lift the important informal construction sector.
