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Printed 08 June 2022
For a number of years, Indonesia’s cement trade has skilled stagnant home demand, overcapacity and pricing stress – issues which were exacerbated by COVID-19. Nonetheless, whereas uncertainty stays, authorities infrastructure spending, power coverage and housing market progress supply hope of enchancment. By George Woods, Jitin Sethi and Bhushan Bhutada, LEK Consulting.
The Indonesian cement trade is predicted to obtain welcome help from the federal government towards
a backdrop of central financial institution fee uncertainty at residence and geopolitical points elsewhere
Indonesia is among the prime 5 cement producers globally, with a complete manufacturing quantity of ~77Mt in 2021. Nonetheless, since 2015 the home cement trade has been suffering from overcapacity. Constant additions by new entrants have led to vital oversupply, with utilisation charges falling from 84 per cent in 2014 to ~68 per cent in 2019. The share of home market chief Semen Indonesia (excluding Solusi Bangun Indonesia –SBI) at residence has declined from 44 per cent in 2014 to 38 per cent in 2019.
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