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.
Domestic Consumption
1Domestic cement consumption in Indonesia was 59.8 million tons in 2022, down 1.8% YoY due to economic slowdown
Verified2Per capita cement consumption in Indonesia reached 220 kg in 2022
Verified3Cement demand in Java island consumed 38.2 million tons or 64% of national total in 2022
Verified4Residential construction sector accounted for 55% of cement consumption at 32.9 million tons in 2022
Directional5Infrastructure projects drove 25% of cement use, equating to 15 million tons in 2022
Single source6Cement consumption growth projected at 4-5% for 2023 to 62 million tons
Verified7Sumatra cement consumption was 11.5 million tons in 2022, up 3% YoY
Verified8Industrial sector cement demand 12% or 7.2 million tons in 2022
Verified9Cement sales volume by bagged cement was 45 million tons (75%) vs bulk 14.8 million tons in 2022
Directional10Q1 2023 cement consumption rose 2.1% to 15.2 million tons nationally
Single source11Kalimantan cement demand surged 7.5% to 4.1 million tons in 2022 on mining boom
Verified12Sulawesi consumption 5.8 million tons in 2022, driven by nickel projects
Verified13Government infrastructure budget of IDR 423 trillion boosted cement demand by 10% in 2023
Verified14Cement consumption per 1,000 housing units averaged 1,200 tons in urban areas 2022
Directional15Eastern Indonesia cement demand grew 8% to 6.2 million tons in 2022
Single source16Commercial building sector used 8% of cement or 4.8 million tons in 2022
Verified17Cement demand elasticity to GDP growth was 1.2 in Indonesia 2018-2022 period
Verified18Monthly cement consumption averaged 5 million tons in 2022, peaking at 5.4 Mt in Q3
Verified19Low-income housing program (FLPP) consumed 2.5 million tons cement in 2022
Directional20Cement use in toll road projects reached 3.2 million tons in 2022
Single source21Urbanization rate of 57% correlated to 65% cement consumption in cities 2022
Verified22Cement demand forecast 65 Mta by 2024 on 5% CAGR
Verified23Q4 2022 consumption fell 3% to 14.5 Mt on seasonal factors
Verified24Residential retrofitting used 1.1 million tons cement in 2022
Directional25Cement consumption in Bali-NTB grew 12% to 2.3 Mta in 2022 tourism recovery
Single source26Total domestic sales by ASI members 58 Mtons in 2022
Verified27Cement demand from real estate sector 18% or 10.8 Mtons 2022
Verified28Per capita consumption in Jakarta 450 kg vs national 220 kg in 2022
Verified29Cement imports for consumption negligible at 0.5 Mtons in 2022
DirectionalDomestic 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
1Indonesia cement exports totaled 2.8 million tons in 2022, down 15% YoY due to global slowdown
Verified2Cement imports into Indonesia were 1.2 million tons in 2022, mainly clinker from Vietnam
Verified3Top export destination Philippines received 1.1 Mtons Indonesian cement in 2022
Verified4Clinker exports from Indonesia reached 4.5 Mtons in 2022 to Bangladesh and others
Directional5Cement export value IDR 4.2 trillion in 2022, average price USD 45/ton
Single source6Vietnam supplied 0.8 Mtons clinker imports to Indonesia in 2022
Verified7Indonesian cement exports to Australia 0.3 Mtons in 2022 for specialty products
Verified8Total cement trade volume (exp+imp) 8.5 Mtons in 2022
Verified9Q1 2023 cement exports up 10% to 0.8 Mtons
Directional10Clinker import duty reduced to 5% in 2023 boosting imports to 1.5 Mtons H1
Single source11Exports to Malaysia 0.4 Mtons cement in 2022
Verified12Indonesia's share of global cement exports 2.1% in 2022 at 2.8 Mtons
Verified13Bulk cement exports dominated 70% of volume or 2 Mtons in 2022
Verified14Cement imports from China 0.2 Mtons in 2022 for white cement
Directional15Projected cement exports 3.5 Mtons in 2024 with ASEAN focus
Single source16Port of departure for 60% exports: Tanjung Priok with 1.7 Mtons 2022
Verified17Clinker exports to India 0.9 Mtons in 2022
Verified18Import value of clinker IDR 1.8 trillion in 2022
Verified19Cement export growth to Africa 20% to 0.1 Mtons in 2022
Directional20Domestic sales priority policy limited exports to 5% of production in 2023
Single source21Exports to Papua New Guinea 0.15 Mtons cement 2022
Verified22Clinker import from Thailand 0.3 Mtons in 2022
Verified23Cement export FOB price averaged USD 42/ton in 2022
Verified24Total clinker trade (exp+imp) 6 Mtons in 2022
Directional25Exports to Singapore 0.2 Mtons for construction 2022
Single source26Semen Indonesia Group exported 1.2 Mtons cement in 2022
Verified27PT Indocement export volume 0.6 Mtons mainly to Philippines 2022
Verified28Cement imports via Belawan port 0.4 Mtons clinker 2022
Verified29Export quota for cement set at 3 Mtons annually by MoTrade 2023
DirectionalExport 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
1Average cement price IDR 1,250,000 per ton in Java 2022, up 8% YoY
Verified2Semen Indonesia Group revenue from cement sales IDR 85.4 trillion in 2022
Verified3EBITDA margin for Indonesian cement firms averaged 22% in 2022
Verified4Cement price in Sumatra IDR 1,350,000/ton average 2022 due to logistics
Directional5PT Indocement net profit IDR 2.1 trillion in 2022, up 15%
Single source6Cost of production per ton cement IDR 850,000 in 2022 for majors
Verified7Clinker price imported averaged USD 55/ton CIF Indonesia 2022
Verified8ROE for SIG 18.5% in 2022
Verified9Cement retail price bagged 50kg IDR 65,000 in Jakarta 2022
Directional10Industry capex total IDR 15 trillion in 2022 for expansions
Single source11Debt-to-equity ratio average 0.45 for top cement firms 2022
Verified12Coal cost share 35% of total production cost IDR 300,000/ton cement 2022
Verified13Cement price hike approved 3% in Q2 2023 to IDR 1,280,000/ton Java
Verified14PT Semen Padang revenue IDR 12.5 trillion 2022
Directional15Gross margin 38% for Indocement in 2022
Single source16Electricity tariff impact +IDR 50,000/ton cost rise 2022
Verified17Market cap SIG IDR 75 trillion end-2022
Verified18Average selling price ASP IDR 1,420,000/ton for exports 2022
Verified19Net debt SIG IDR 20 trillion with leverage 1.2x EBITDA 2022
Directional20Cement price in Eastern Indonesia IDR 1,600,000/ton avg 2022 logistics premium
Single source21R&D spend 1.2% of revenue or IDR 1 trillion industry-wide 2022
Verified22Dividend payout ratio 45% for majors averaging IDR 5 trillion paid 2022
Verified23Freight cost per ton IDR 150,000 Java average 2022
Verified24PT Cemindo EBITDA IDR 3.2 trillion 2022 on volume growth
Directional25Inflation-adjusted cement price index 115 in 2022 (base 2019=100)
Single source26Tax contribution from cement industry IDR 8 trillion PPh & PPN 2022
Verified27Working capital turnover 4.2x for SIG 2022
Verified28Bagged cement premium IDR 200,000/ton over bulk 2022
Verified29Industry profit before tax IDR 25 trillion total 2022
DirectionalPrices 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
1Indonesia's cement production reached 66.3 million tons in 2022, marking a 2.5% increase from 2021
Verified2Installed cement production capacity in Indonesia stood at 78.5 million tons per annum (Mta) as of end-2022, with Semen Indonesia Group holding 54%
Verified3In 2023 Q1, cement production in Java region accounted for 62% of national total at 16.8 million tons
Verified4Cement grinding capacity addition of 5 Mta by PT Semen Indonesia in Tuban plant in 2022
Directional5National cement production utilization rate was 84.3% in 2022, down from 87% in 2021 due to oversupply
Single source6PT Indocement Tunggal Prakarsa produced 21.2 million tons of cement in 2022
Verified7New clinker production line of 2.5 Mta commissioned by PT Semen Baturaja in 2023
Verified8Cement production in Sumatra region grew 4.1% YoY to 12.4 million tons in 2022
Verified9Total clinker production in Indonesia was 38.7 million tons in 2022, supporting gray cement output
Directional10PT Solusi Bangun Indonesia (SIG) announced 3 Mta capacity expansion in Rembang plant by 2024
Single source11Cement production in Sulawesi reached 4.2 million tons in 2022, up 6% from prior year
Verified12Integrated cement plants in Indonesia numbered 25 with total capacity 78 Mta as of 2023
Verified13White cement production capacity limited to 0.5 Mta by PT Indocement in 2022
Verified14Cement production growth projected at 5-7% for 2024 reaching 72 million tons
Directional15PT Semen Padang produced 8.1 million tons in 2022 from its 9 Mta capacity
Single source16Clinker import substitution led to 2% increase in domestic clinker output to 39.5 Mta in 2023 H1
Verified17Cement production in Kalimantan was 3.8 million tons in 2022, driven by infrastructure projects
Verified18New grinding plant by PT Cemindo Gemilang added 1.5 Mta in East Java 2023
Verified19National cement output per capita was 240 kg in 2022
Directional20PT Holcim Indonesia (now SIG) clinker capacity at Merawang plant is 4.2 Mta post-expansion
Single source21Cement production dipped 1.2% in Q4 2022 to 16.1 million tons amid rainy season
Verified22Total cement capacity utilization in Java was 82% in 2023
Verified23PT Semen Indonesia's Tuban plant produced 15 million tons cement in 2022 from 18 Mta capacity
Verified24Green cement production initiatives targeted 10% of total output by 2025
Directional25Cement output in Papua region minimal at 0.8 Mta capacity in 2022
Single source26Expansion of 2 Mta integrated line by PT Bukit Asam in 2023
Verified27Annual average cement production growth 3.8% from 2018-2022
Verified28PT Ardilles Indonesia's new 1.2 Mta grinding plant operational in 2023 West Java
Verified29Clinker production efficiency improved to 0.92 tons clinker/ton cement in 2022
Directional30Total cement production forecast 70 Mta by 2025 with 85 Mta capacity
Single sourceProduction 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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