Indonesia's Cement Sales Indicate Country's Slowing Economic Growth
Cement sales in Indonesia between January and May 2013 rose 6.9 percent to 23 million tons (year on year). In the month May alone, cement sales rose by 2.1 percent (to 4.7 million tons), one of the lowest monthly growth rates seen in the last years. Between January and April 2013, cement consumption had still grown at a pace of 8.6 percent (YoY). These numbers thus seem to indicate that Indonesia's economic growth is slowing down as cement sales reveal the state and pace of infrastructure and real estate projects.
Apart from the islands of Java and Sulawesi, cement consumption on all Indonesian island contracted. Java, where cement sales increased 5.3 percent to 2.8 million tons, accounts for about 55 percent of Indonesia's total cement consumption.
The World Bank also signals Indonesia's slowing economic growth and revised down its forecast for economic growth in 2013 to 5.9 percent from its original forecast of 6.2 percent.
| 2010 | 2011 | 2012 | 2013 | |
| Cement Production in million tons |
37.8 | 52.0 | 60.6 | 65.0¹ |
| Cement Consumption in million tons |
40.8 | 48.0 | 55.0 | 61.0¹ |
¹ indicates a forecast
Source: Indonesian Cement Association