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Monday, November 25, 2013

Domestic Cement Consumption analysis in Indonesia


As the economic growth of Indonesia in 2013 which is below its growth in 2012, the cement consumption of Indonesia will increase slightly. Based on simple statistic the increase of cement consumption has strong correlation with economic growth.

The industry of cement and non metalic sector has average increase at 12 % in 2006 - 2010.

 

With simple moving average method, we could calculate, the growth of domestic consumption in 2013 is at 7.8 % compared to 2012 by using data of cement consumption in 2008-2012.
In 2012 the domestic cement consumption is 55 million tons; it increases 14 % higher than consumption in 2011 which was 48 million tons.





Within stable condition and strong domestic consumption the cement consumption is expected increase in the future.  The challenge is rupiah currency, it can stumble cement consumption. 

Several projects that I think affect it are toll projects. The demand is high based on Master Plan for acceleration and expansion of Indonesian economic development (MP3EI) through 2014 which the 19 % total investment is in infrastructure project. 

The several strategic projects which held by government are Trans java connecting Jakarta – Surabaya, Trans Sumatra and trans Sulawesi. The total length of the toll road projects is 3670 KM.
Compared to other countries in Asia such as china, Indonesia is slow.