Indonesia’s cement industry closed 2025 with a story of contrasts. Domestic sales showed improvement in December, yet overall annual performance remained subdued. At the same time, exports surged, offering a glimpse of resilience in the face of uneven demand at home.
Key Facts & Background
December 2025 Performance:
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- Domestic cement sales grew 11% year-on-year (yoy) in December.
- Growth was driven by demand in Central Java and East Java, signaling regional recovery.
- Estimated monthly volume stood around 5.8 million tons, higher than the preceding months.
Annual Trends:
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- National cement production fell 4.5% yoy to 64.7 million tons.
- Domestic sales declined 1.5% yoy to 63.9 million tons, reflecting overall market weakness.
Segment Breakdown:
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- Bulk cement sales contracted, dragging down overall performance.
- Bagged cement sales showed slight growth, supported by retail and small-scale construction demand.
Export Growth:
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- Cement exports rose 32.2% yoy to 1.32 million tons.
- Key destinations included Timor Leste, Australia, and the Maldives.
- Export growth helped offset domestic market stagnation.
Regional Pressures:
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- Sales in Sumatra fell 4% yoy, impacted by flooding.
- Sales in Kalimantan dropped 9% yoy, linked to slower progress on the IKN (new capital city) project.
Strategic Insights
The cement industry’s performance in 2025 reflects the uneven pace of Indonesia’s construction sector. While December’s rebound in Java suggests localized recovery, the annual decline underscores structural challenges, particularly in bulk cement demand. Infrastructure delays, regional disruptions, and reliance on bagged cement sales highlight the fragility of domestic consumption. Yet the sharp rise in exports demonstrates the industry’s ability to pivot toward external markets, leveraging regional demand to sustain growth.
Looking ahead, the industry’s resilience will depend on balancing domestic recovery with export expansion. Government infrastructure projects, including the IKN development, remain critical to reviving bulk demand, while continued investment in logistics and port facilities can strengthen export competitiveness. If the sector can align production capacity with both domestic and international opportunities, Indonesia’s cement industry may transform short-term volatility into long-term stability, reinforcing its role as a cornerstone of national industrial growth.