Cement sales soar on the back of real estate projects in Indonesia

Indonesia’s cement sales for 2011 may beat expectations due to large volume of real estate and infrastructure projects.

The Indonesian Cement Association (ASI) said cement sales this year could exceed two previous forecasts. ASI projected domestic sales increase by 10 per cent to 44 million tons up from the previous year while an even earlier projection had put 2011 sales up by 6 per cent.

Demand from the property sector accounted for around 70 per cent and the reminder from infrastructure.

As part of Indonesia’s economic development plan, the country has invested heavily in infrastructure projects in the past few years such as seaports and toll roads, in order to create jobs and stimulate growth. Under the plan, the government has divided the country into six regional economic development corridors with a total project investment of IDR3.3tr (US$374mn).

The plan is a part of the country’s efforts to become the 12th-largest economy by 2025. Last year, Indonesia was ranked as the world’s 17th-largest economy.