JAKARTA (TheInsiderStories) – Indonesian cement sales corrected 5.4 percent to 16.28 million tones (MT) in the first quarter (1Q) of 2020, the association reported this week. The domestic consumption also declined 4.91 percent to 14.9 MT of cement and exports dropped 2.46 percent to 1.39 MT of cements.
Indonesian Cement Association also reported, the national output fell by 4.71 percent to 16.29 million tones (MT) in the first quarter of 2020 from same period of last year amounted to 17.09 MT of cement.
Amidst the decreasing, major producer, PT Semen Indonesia Tbk (IDX: SMGR) is still able to boosted its sales to 9.36 MT of cement, or up 7.04 percent compared to previous year. On monthly basis, the manufacturer has successfully rise its sales from 2.91 MT of cement in February to 3.09 MT of cement in March.
Of the total, 8.89 MT of cement were contributed by SMGR and PT Solusi Bangun Indonesia Tbk (IDX: SMCB). Around 470,000 tones of cement from the other units, such as PT Semen Gresik, PT Semen Padang, and PT Semen Tonasa. Around 7.8 MT of cement were sold to the domestic market and another 1.02 MT of cement for export sales.
Its other unit, Thang Long Cement Joint Stock Co., (TLCC) sales also rose sharply by 17.45 percent to 476,150 tones of cement in the 1Q of 2020. In details, 303,722 tones of cement sold in the domestic market and the remaining around 172,429 tons were sold to the export market.
the state-owned cement producer, sees the national sales of cement only grow 5 percent in 2020, or almost flat compared to this year. Last year, the national sales of all producer reached 75.2 MT of cement.
The cement industry in Indonesia is currently dealing with oversupply. Based on public works and public housing ministry data, the national cement industry was oversupplied by 37 percent or 40.9 MT of cement from the needs 59.21 MT of cement for infrastructure development in 2020.
At present, the domestic cement industry is still experiencing excess supply which is estimated to reach 30 percent of the current national capacity of 110 MT of cement per annum.
Entering 2020 -2024 National Medium-Term Development Plan, the infrastructure development remained the priority of the government. As evident in the total funding requirement for infrastructure reached Rp2,058 trillion (US$132,77 billion) for the period.
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