The Ministry of Industry (Kemenperin) reports that Indonesian cement products, particularly clinker (semi-finished cement) and cement, are highly sought after in international markets. In 2023, clinker exports reached 9.7 million tons, while annual cement exports averaged between 1.3 and 1.8 million tons from 2018 to 2023. Indonesia exports clinker to Bangladesh, Australia, Taiwan, Brunei, Fiji, and Malaysia. Cement products are sold to rapidly developing markets such as Timor Leste, Sri Lanka, the Philippines, Papua New Guinea, and the Maldives. Putu Nadi Astuti, Director of the Cement, Ceramics, and Non-Metallic Mineral Processing Industry at Kemenperin, stated that Indonesia is the largest cement producer in Southeast Asia, with an annual production capacity of 120 million tons. In contrast, the national demand for cement was 66.8 million tons in 2023. "High cement consumption in Indonesia is a crucial indicator of the country's economic growth, as it signifies extensive infrastructure development," said Putu.
Despite the robust production capacity, Indonesia faces an overcapacity issue, with a utilization rate of only 58%. To address this, Putu emphasized the importance of controlling the import of cement-based goods such as mortar, fiber cement, precast concrete, and prestressed concrete to boost domestic cement consumption. "Imports of precast and prestressed concrete are quite high. If we can control these imports, the utilization of domestically produced cement will increase, thereby enhancing the utilization rate of the cement industry," Putu stated. By managing imports and increasing the use of domestic cement products, Indonesia aims to optimize its production capabilities and support the growth of its cement industry.
