National production capacity 2020 reached 115.3 million tons, while national demand was 62.7 million tons therefore create excess capacity of 52.6 million tons. Most of the cement plants are concentrated in Java which represents the largest portion of national cement consumption.
Sumatera (Million Ton)
0.4
1.2
3.9
Sulawesi (Million Ton)
2.0
11.2
13.8
4.2
SupplyDemand
SIG
Semen Baturaja
Merah Putih
Bosowa
Java (Million Ton)
6.1
1.8
1.8
7.3
1.8
Kalimantan (Million Ton)
2.2
2.0
22.7
3.0
Bali Nusra (Million Ton)
7.4
5.4
SupplyDemand
SIG Bosowa Conch
Papua (Million Ton)
31.7
34.0
2.8
4.0
Supply
Demand
3.6
0.4
1.5
2.0
Supply
Demand
SIG
Indocement
Bosowa
Indocement
Conch
Merah Putih
Conch
Semen Jawa
Jui Shin
STAR
Others
SupplyDemand
Semen Kupang
SupplyDemand
Conch
Source: Indonesia Cement Association Data
17.4%
18.0%
5.5%
10.7%
3.4%
3.5%
7.6%
4.8%
-0.6%
1.8%
4.9%
2.9%
0.0%
2.7%
0.7%
2013
2014
2015
2016
2017
2018
2019
2020
-10.4%
Demand Growth
Capacity Growth
CAGR Demand: 1.7%
CAGR Capacity: 7.1%
9.3
83%
84%
84%
75%
68%
68%
82%
83%
83%
68%
63%
64%
5.7
6.1
73%
66%
60%
63%
62%
56%
2.8
1.0
1.5
0.6
0.2
0.3
2012
2013
2014
2015
2016
2017
2018
2019
2020
2012
2013
2014
2015
2016
2017
2018
2019
2020
Export Sales
Domestic Utilization
Domestic + Export Utilization
Demand Growth vs.
Capacity Growth
National cement production capacity increase more compared to the demand growth creating oversupply situation in the Indonesia cement industry.
Industry Utilization Rate
Industrial utilization rate has decreased from 82% in 2014 to 56% in 2020 as cement players have doubled since 2015. 2020 utilization also decreased in line with the negative domestic demand growth due to COVID-19 Pandemic.
Increase in Export Sales
To help maintain utilization, some players made sales to export markets. Cement and clinker exports from Indonesia continue to increase, especially in 2018 to date.
Source: Indonesia Cement Association Data
National cement demand YTD September 2021 increased 5.5%. The growth was from bag demand which grew 6.9% and also bulk demand which grew 0.9% up to September 2021. That was resulting higher bag demand portion to be 78% up to September 2021. Almost all of the region in Indonesia have recorded positive demand growth, except Bali Nusa Tenggara. The highest demand growth was seen in Sulawesi which mostly from the bag demand.
Java (53%)
National
Bulk 22%
Growth
Bag
Bag
6.9%
78%
Bulk
0.9%
Total
5.5%
Sumatera (22%)
Bulk
Bulk
Sulawesi (10%)
28%
15%
Bulk
20%
Bag
Bag
Bag
72%
85%
80%
Growth
Growth
Growth
Bag
5.1%
Bag
6.9%
Bag
28.7%
Bulk
-0.6%
Bulk
-7.7%
Bulk
14.9%
Total
3.5%
Total
4.4%
Total
25.6%
Kalimantan (6%)
Bulk 17%
Bag 83%
Growth
Bag 5.9%
Bulk 13.5%
Total 7.2%
Bali Nusra (6%)
Bulk 12%
Bag 88%
Growth
Bag -7.3%
Bulk 54.5%
Total -2.7%
East Indonesia (3%)
Bulk 4%
Bag 96%
Growth
Bag 11.3%
Bulk -38.8%
Total 8.0%
Source: Indonesia Cement Association Data
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PT Semen Indonesia Persero Tbk published this content on 01 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2021 02:16:01 UTC.
PT Semen Indonesia (Persero) Tbk is an Indonesia-based multinational building materials solutions company. The Company provides a range of product and service variants according to the level of development needs from simple renovations, property development projects, public facilities, infrastructure to other large-scale projects. The Company has two segments: cement production and non-cement production. Cement production segment produces and markets cement products in Indonesia, Vietnam, as well as various export destination countries. In addition to production facilities, the Company has also developed various supporting facilities, such as packaging factories, ports, and other distribution support networks spread across all provinces in Indonesia and parts of Vietnam. Non-cement production segment consists of mining limestone and clay, manufacturing packaging bags, developing industrial estates, finished and ready-to-use concrete, information system services, logistics and trading.
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