Java Absorbs More Than Half of National Cement Consumption

More than half of Indonesia's national cement consumption is in Java. Cement consumption in Java reached 30.78 million tons, or approximately 54.4 percent of national consumption, during the January-November 2016 period, which totaled 56.5 million tons. Rapid development has led to very high cement demand on the island of Java. However, overall Java's cement consumption during the January-November 2016 period decreased by 2.1 percent compared to the same period the previous year. The largest decrease occurred in Jakarta, reaching 10.6 percent.

The domestic economic slowdown, impacting people's purchasing power, triggered a decrease in demand for property, both office buildings and residential houses in major cities. As a result, national cement demand from January to November 2016 tended to stagnate and only increased slightly by 0.3 percent compared to the same period the previous year.

Kalimantan, as well as Papua and Maluku, are the regions that recorded the highest increase in cement demand in 2016, at 14.7 percent and 7.1 percent respectively. Despite cement prices in Papua exceeding Rp 1 million per bag in inland areas, consumption in Papua experienced an increase. Meanwhile, Kalimantan was the region that recorded the largest decrease, at 11.7 percent.