National Cement Sales Down 5.4% in 2020

Based on data from the Indonesian Cement Association (ASI), national cement sales reached 72 million tons in 2020. Cement sales decreased by 5.4% from 76.1 million tons in 2019.

The decline in cement sales last year was partly due to a decrease in public purchasing power, following the downturn in the economy caused by the Covid-19 pandemic. In addition, most property and infrastructure projects, both government and privately developed, experienced slowdowns or delays.

Specifically, domestic cement sales in 2020 were recorded at 62.7 million tons, down 10.2% compared to 69.8 million tons in 2019. Meanwhile, cement exports last year amounted to 9.3 million tons, an increase of 47.62% from 6.3 million tons in 2019.

Meanwhile, the cement supply in the market increased with the operation of a new cement plant in Jember, East Java. This resulted in an increase in national cement supply capacity by 2.7%, from 112.3 million tons in 2019 to 115.3 million tons in 2020.

The increase in supply capacity and the decrease in national cement demand resulted in increased cement oversupply in the market. Recorded cement oversupply in 2020 increased to 43.3 million tons, a 19.61% increase compared to 2019.

Looking at the trend, national cement sales have tended to increase from 2016 to 2019. The highest cement sales occurred in 2019. The lowest cement sales occurred in 2016 at 67.3 million tons.