In a landscape of expansion where production climbed to 66.3 million tons in 2022 yet an 84.3% utilization rate reveals a market flush with supply, Indonesia's cement industry is building a future filled with both immense capacity and intense competition.
Key Takeaways
- Indonesia's cement production reached 66.3 million tons in 2022, marking a 2.5% increase from 2021
- Installed cement production capacity in Indonesia stood at 78.5 million tons per annum (Mta) as of end-2022, with Semen Indonesia Group holding 54%
- In 2023 Q1, cement production in Java region accounted for 62% of national total at 16.8 million tons
- Domestic cement consumption in Indonesia was 59.8 million tons in 2022, down 1.8% YoY due to economic slowdown
- Per capita cement consumption in Indonesia reached 220 kg in 2022
- Cement demand in Java island consumed 38.2 million tons or 64% of national total in 2022
- Indonesia cement exports totaled 2.8 million tons in 2022, down 15% YoY due to global slowdown
- Cement imports into Indonesia were 1.2 million tons in 2022, mainly clinker from Vietnam
- Top export destination Philippines received 1.1 Mtons Indonesian cement in 2022
- Semen Indonesia (SIG) held 52.3% market share in domestic cement sales in 2022
- PT Indocement Tunggal Prakarsa market share 18.7% with 11.2 Mtons sales 2022
- PT Solusi Bangun Indonesia (ex-Holcim) 16.4% share post-merger in 2022
- Average cement price IDR 1,250,000 per ton in Java 2022, up 8% YoY
- Semen Indonesia Group revenue from cement sales IDR 85.4 trillion in 2022
- EBITDA margin for Indonesian cement firms averaged 22% in 2022
Indonesia's growing cement industry faces oversupply despite regional demand increases.
Company Market Shares
- Semen Indonesia (SIG) held 52.3% market share in domestic cement sales in 2022
- PT Indocement Tunggal Prakarsa market share 18.7% with 11.2 Mtons sales 2022
- PT Solusi Bangun Indonesia (ex-Holcim) 16.4% share post-merger in 2022
- PT Semen Padang captured 9.2% market share in Sumatra region 2022
- PT Semen Baturaja 3.1% national share with focus on South Sumatra 2022
- PT Cemindo Gemilang (Bayah) 5.8% share growing in Eastern markets 2022
- PT Semen Dinia Indonesia 1.2% share in Java grinding plants 2022
- PT Bukit Asam (Semen BUKIT) 2.4% share integrated with coal ops 2022
- Others combined 11.9% including imports and small grinders 2022
- SIG group post-merger controlled 68% capacity in 2023
- Indocement's Portland Composite Cement (PCC) held 25% sub-segment share 2022
- Semen Padang dominated West Sumatra with 65% local share 2022
- Cemindo's RD Shield brand 15% in eco-cement niche 2022
- Market concentration ratio CR5 at 92% in Indonesian cement 2022
- PT PABRIK Kertas Leces (cement arm) 0.8% share in Banten 2022
- Semen Baturaja's OPC premium brand 40% in Palembang market 2022
- SIG's growth to 55% share via Tuban expansions 2023 Q1
- Indocement Citadel brand 30% bagged cement sales Java 2022
- PT Rajawali Cemindo's market entry boosted share to 6% 2022
- Heracles (Semen Kupang) 1.5% in NTT region 2022
- National top 3 firms 87% sales volume 2022
- Semen Indonesia's Portland Type I share 35% premium segment 2022
- PT Sumber Siam Indonesia 0.9% import-based share 2022
- Kalimantan market: Cemindo 28%, SIG 25% 2022
- White cement market: Indocement 70% share 2022
- PT Mexindo Primatama 1.1% in grinding sector 2022
- Sulawesi: Semen Bosowa 45% local share 2022
- Overall HHI index 3200 indicating high concentration 2022
- PT Mitra Adiperkasa Tbk cement sub 0.5% niche 2022
- SIG-Indocement merger pending approval to reach 70% 2024
- Semen Padang export share within company 15% of sales 2022
- PT Semen Merah Putih 0.7% in Central Java 2022
Company Market Shares Interpretation
The Indonesian cement market reads like a corporate family reunion where Uncle Semen Indonesia dominates the guest list with over half the party, the next few cousins politely divide most of what's left, and everyone else is left jostling for a handful of crumbs in fiercely competitive regional corners.
Domestic Consumption
- Domestic cement consumption in Indonesia was 59.8 million tons in 2022, down 1.8% YoY due to economic slowdown
- Per capita cement consumption in Indonesia reached 220 kg in 2022
- Cement demand in Java island consumed 38.2 million tons or 64% of national total in 2022
- Residential construction sector accounted for 55% of cement consumption at 32.9 million tons in 2022
- Infrastructure projects drove 25% of cement use, equating to 15 million tons in 2022
- Cement consumption growth projected at 4-5% for 2023 to 62 million tons
- Sumatra cement consumption was 11.5 million tons in 2022, up 3% YoY
- Industrial sector cement demand 12% or 7.2 million tons in 2022
- Cement sales volume by bagged cement was 45 million tons (75%) vs bulk 14.8 million tons in 2022
- Q1 2023 cement consumption rose 2.1% to 15.2 million tons nationally
- Kalimantan cement demand surged 7.5% to 4.1 million tons in 2022 on mining boom
- Sulawesi consumption 5.8 million tons in 2022, driven by nickel projects
- Government infrastructure budget of IDR 423 trillion boosted cement demand by 10% in 2023
- Cement consumption per 1,000 housing units averaged 1,200 tons in urban areas 2022
- Eastern Indonesia cement demand grew 8% to 6.2 million tons in 2022
- Commercial building sector used 8% of cement or 4.8 million tons in 2022
- Cement demand elasticity to GDP growth was 1.2 in Indonesia 2018-2022 period
- Monthly cement consumption averaged 5 million tons in 2022, peaking at 5.4 Mt in Q3
- Low-income housing program (FLPP) consumed 2.5 million tons cement in 2022
- Cement use in toll road projects reached 3.2 million tons in 2022
- Urbanization rate of 57% correlated to 65% cement consumption in cities 2022
- Cement demand forecast 65 Mta by 2024 on 5% CAGR
- Q4 2022 consumption fell 3% to 14.5 Mt on seasonal factors
- Residential retrofitting used 1.1 million tons cement in 2022
- Cement consumption in Bali-NTB grew 12% to 2.3 Mta in 2022 tourism recovery
- Total domestic sales by ASI members 58 Mtons in 2022
- Cement demand from real estate sector 18% or 10.8 Mtons 2022
- Per capita consumption in Jakarta 450 kg vs national 220 kg in 2022
- Cement imports for consumption negligible at 0.5 Mtons in 2022
Domestic Consumption Interpretation
While Indonesia's national cement consumption dipped slightly in 2022, the story it tells is one of a dual-track economy where government infrastructure and a mining boom are building growth in Sumatra and beyond, even as Java's homes and Jakarta's sky-high per capita usage remain the stubborn, heavy foundation of it all.
Export and Import Volumes
- Indonesia cement exports totaled 2.8 million tons in 2022, down 15% YoY due to global slowdown
- Cement imports into Indonesia were 1.2 million tons in 2022, mainly clinker from Vietnam
- Top export destination Philippines received 1.1 Mtons Indonesian cement in 2022
- Clinker exports from Indonesia reached 4.5 Mtons in 2022 to Bangladesh and others
- Cement export value IDR 4.2 trillion in 2022, average price USD 45/ton
- Vietnam supplied 0.8 Mtons clinker imports to Indonesia in 2022
- Indonesian cement exports to Australia 0.3 Mtons in 2022 for specialty products
- Total cement trade volume (exp+imp) 8.5 Mtons in 2022
- Q1 2023 cement exports up 10% to 0.8 Mtons
- Clinker import duty reduced to 5% in 2023 boosting imports to 1.5 Mtons H1
- Exports to Malaysia 0.4 Mtons cement in 2022
- Indonesia's share of global cement exports 2.1% in 2022 at 2.8 Mtons
- Bulk cement exports dominated 70% of volume or 2 Mtons in 2022
- Cement imports from China 0.2 Mtons in 2022 for white cement
- Projected cement exports 3.5 Mtons in 2024 with ASEAN focus
- Port of departure for 60% exports: Tanjung Priok with 1.7 Mtons 2022
- Clinker exports to India 0.9 Mtons in 2022
- Import value of clinker IDR 1.8 trillion in 2022
- Cement export growth to Africa 20% to 0.1 Mtons in 2022
- Domestic sales priority policy limited exports to 5% of production in 2023
- Exports to Papua New Guinea 0.15 Mtons cement 2022
- Clinker import from Thailand 0.3 Mtons in 2022
- Cement export FOB price averaged USD 42/ton in 2022
- Total clinker trade (exp+imp) 6 Mtons in 2022
- Exports to Singapore 0.2 Mtons for construction 2022
- Semen Indonesia Group exported 1.2 Mtons cement in 2022
- PT Indocement export volume 0.6 Mtons mainly to Philippines 2022
- Cement imports via Belawan port 0.4 Mtons clinker 2022
- Export quota for cement set at 3 Mtons annually by MoTrade 2023
Export and Import Volumes Interpretation
In 2022, Indonesia's cement industry was a masterclass in global hustle, skillfully balancing its own export ambitions with pragmatic imports of cheaper clinker, all while dutifully serving as the construction supplier of choice to its ASEAN neighbors.
Prices and Financial Metrics
- Average cement price IDR 1,250,000 per ton in Java 2022, up 8% YoY
- Semen Indonesia Group revenue from cement sales IDR 85.4 trillion in 2022
- EBITDA margin for Indonesian cement firms averaged 22% in 2022
- Cement price in Sumatra IDR 1,350,000/ton average 2022 due to logistics
- PT Indocement net profit IDR 2.1 trillion in 2022, up 15%
- Cost of production per ton cement IDR 850,000 in 2022 for majors
- Clinker price imported averaged USD 55/ton CIF Indonesia 2022
- ROE for SIG 18.5% in 2022
- Cement retail price bagged 50kg IDR 65,000 in Jakarta 2022
- Industry capex total IDR 15 trillion in 2022 for expansions
- Debt-to-equity ratio average 0.45 for top cement firms 2022
- Coal cost share 35% of total production cost IDR 300,000/ton cement 2022
- Cement price hike approved 3% in Q2 2023 to IDR 1,280,000/ton Java
- PT Semen Padang revenue IDR 12.5 trillion 2022
- Gross margin 38% for Indocement in 2022
- Electricity tariff impact +IDR 50,000/ton cost rise 2022
- Market cap SIG IDR 75 trillion end-2022
- Average selling price ASP IDR 1,420,000/ton for exports 2022
- Net debt SIG IDR 20 trillion with leverage 1.2x EBITDA 2022
- Cement price in Eastern Indonesia IDR 1,600,000/ton avg 2022 logistics premium
- R&D spend 1.2% of revenue or IDR 1 trillion industry-wide 2022
- Dividend payout ratio 45% for majors averaging IDR 5 trillion paid 2022
- Freight cost per ton IDR 150,000 Java average 2022
- PT Cemindo EBITDA IDR 3.2 trillion 2022 on volume growth
- Inflation-adjusted cement price index 115 in 2022 (base 2019=100)
- Tax contribution from cement industry IDR 8 trillion PPh & PPN 2022
- Working capital turnover 4.2x for SIG 2022
- Bagged cement premium IDR 200,000/ton over bulk 2022
- Industry profit before tax IDR 25 trillion total 2022
Prices and Financial Metrics Interpretation
In Java, cement prices rose 8% to IDR 1.25 million per ton in 2022, proving that while building a nation's infrastructure is noble, it's also a fantastically profitable way to move heavy rocks from one place to another, especially when a 38% gross margin and a 22% industry EBITDA can absorb a IDR 150,000 freight cost and still leave room for a IDR 5 trillion dividend party.
Production Capacity and Output
- Indonesia's cement production reached 66.3 million tons in 2022, marking a 2.5% increase from 2021
- Installed cement production capacity in Indonesia stood at 78.5 million tons per annum (Mta) as of end-2022, with Semen Indonesia Group holding 54%
- In 2023 Q1, cement production in Java region accounted for 62% of national total at 16.8 million tons
- Cement grinding capacity addition of 5 Mta by PT Semen Indonesia in Tuban plant in 2022
- National cement production utilization rate was 84.3% in 2022, down from 87% in 2021 due to oversupply
- PT Indocement Tunggal Prakarsa produced 21.2 million tons of cement in 2022
- New clinker production line of 2.5 Mta commissioned by PT Semen Baturaja in 2023
- Cement production in Sumatra region grew 4.1% YoY to 12.4 million tons in 2022
- Total clinker production in Indonesia was 38.7 million tons in 2022, supporting gray cement output
- PT Solusi Bangun Indonesia (SIG) announced 3 Mta capacity expansion in Rembang plant by 2024
- Cement production in Sulawesi reached 4.2 million tons in 2022, up 6% from prior year
- Integrated cement plants in Indonesia numbered 25 with total capacity 78 Mta as of 2023
- White cement production capacity limited to 0.5 Mta by PT Indocement in 2022
- Cement production growth projected at 5-7% for 2024 reaching 72 million tons
- PT Semen Padang produced 8.1 million tons in 2022 from its 9 Mta capacity
- Clinker import substitution led to 2% increase in domestic clinker output to 39.5 Mta in 2023 H1
- Cement production in Kalimantan was 3.8 million tons in 2022, driven by infrastructure projects
- New grinding plant by PT Cemindo Gemilang added 1.5 Mta in East Java 2023
- National cement output per capita was 240 kg in 2022
- PT Holcim Indonesia (now SIG) clinker capacity at Merawang plant is 4.2 Mta post-expansion
- Cement production dipped 1.2% in Q4 2022 to 16.1 million tons amid rainy season
- Total cement capacity utilization in Java was 82% in 2023
- PT Semen Indonesia's Tuban plant produced 15 million tons cement in 2022 from 18 Mta capacity
- Green cement production initiatives targeted 10% of total output by 2025
- Cement output in Papua region minimal at 0.8 Mta capacity in 2022
- Expansion of 2 Mta integrated line by PT Bukit Asam in 2023
- Annual average cement production growth 3.8% from 2018-2022
- PT Ardilles Indonesia's new 1.2 Mta grinding plant operational in 2023 West Java
- Clinker production efficiency improved to 0.92 tons clinker/ton cement in 2022
- Total cement production forecast 70 Mta by 2025 with 85 Mta capacity
Production Capacity and Output Interpretation
Indonesia's cement industry is building a paradoxical tower of ambition—expanding production capacity while its current foundation of demand remains rather wobbly, yet it's wisely starting to paint this tower green for a more sustainable future.
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