Indonesia: Cement sales fell by 2.5% year-on-year to 51.9Mt between January and October 2025, amid a reduction in the national IKN capital city construction budget to US$889m. Cement production also saw a decline of 6%, reaching 52.9Mt. The Indonesian Cement Association (ASI) said weakening demand occurred in Kalimantan, where sales dropped by 828,356t to 3.88Mt, and Java, where sales fell by 556,468t to 27.1Mt.

Secretary general Ari Wirawan said “Domestic cement sales from January to October 2025 continue to show a negative trend, affecting nearly all regions with a 2.5% decrease compared to the same period in 2024.”

Sales in Sumatra and Nusa Tenggara rose by 2% and 3% respectively due to toll road and tourism infrastructure projects. Exports rose by over 20% to 1.11Mt, with shipments going to Bangladesh, Taiwan, Australia, Timor Leste and Sri Lanka. Production dropped by 6% to 52.9Mt, with utilisation reaching 53%.

ASI chair Lilik Unggul Raharjo said a proposed increase in the home renovation programme budget to US$2.6bn could lift annual cement consumption by 6.2Mt. He said “A 4Mt increase in demand is admittedly somewhat optimistic. Nevertheless, our fervent hope is that the increased budget for home renovations will indeed come to fruition.”