Indonesia: Indonesian Cement Association (ASI) chair Lilik Unggul Raharjo has called for a more ‘robust’ approach to production overcapacity in the cement sector. In a statement by the ASI he lobbied for the government to strengthen its ban on the construction of new plants, according to the Jakarta Post newspaper and Kontan. At present the moratorium applies to obtaining licences via the country’s integrated electronic licensing system (OSS). Lilik also requested a better legal framework to protect the industry.
The government says it is using the block on investment in new cement plants to support the local sector. Restrictions are in place for regions such as Sumatra, Java, Kalimantan and Sulawesi. However, the government is ‘open’ to new plants being built in areas that have no existing units including Papua and Maluku.
ASI data shows that cement sales reached 77Mt in 2024 with a capacity utilisation rate of 65%. Domestic sales fell by just under 1% year-on-year to 65Mt in 2024. Exports grew by 10% to 12Mt. The ASI expects domestic sales of cement to increase by up to 2% in 2025.
