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Indonesia Cement Industry Updates 2020-2021: June 21 2021, Asosiasi Semen Indonesia Widodo Santoso

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INDONESIA CEMENT

INDUSTRY UPDATES
2020-2021
JUNE 21st 2021,
ASOSIASI SEMEN INDONESIA
WIDODO SANTOSO

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INDONESIA GENERAL ECONOMY 2020

• The economic situation which was deteriorated due to the impact of the
Covid-19 pandemic also greatly affected the all sector, whereas declining
of minus 2,07% compare 2019.
• Inflations rate was 1.23 %.
• Inline with National Economy Growth, Non Oil & Gas Industry Sector was
declining to minus 2.2%.

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CEMENT INDUSTRY 2020

• National cement consumption was decreased very significantly when


compared to the 2019, which minus 10,7% when the total volume
reached 62,5 million tons. Almost of all regions experienced decline, Java
-13,6%, Sumatra -4,1%, Kalimantan -10,8%, Sulawesi -11,8%, and Bali-
Nusa Tenggara -13,7%. Only Maluku-Papua has experienced a growth of
9,6%.
• The Indonesian cement industry still recorded a very good export sales in
2020, total volume of 9.2 million tons successfully delivered to several
main destination countries such as Australia, Bangladesh, Srilanka and
even China. Growth of total cement and clinker exports from Indonesia in
2020 reached 41,7%.

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Note: total capacity are included 2 new plants in Central and East Java
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DESIGN CAPACITY
COMPANY 2019 2020 2021
PT Semen Padang 8.900.000 8.900.000 8.900.000
PT Semen Gresik 19.200.000 19.200.000 19.200.000
PT Semen Tonasa 7.400.000 7.400.000 7.400.000
PT Solusi Bangun Indonesia 15.531.480 15.531.480 15.531.480
PT Indocement Tunggal Prakarsa 25.500.000 25.500.000 25.500.000
PT Semen Baturaja 3.850.000 3.850.000 3.850.000
PT Semen Kupang 400.000 400.000 400.000
PT Semen Bosowa Maros 7.400.000 7.400.000 7.400.000
PT Cemindo Gemilang 7.690.000 8.020.000 8.020.000
PT Jui Shin Indonesia 1.800.000 1.800.000 1.800.000
PT Sinar Tambang Arthalestari 1.800.000 1.800.000 1.800.000
PT Semen Jawa 1.800.000 1.800.000 1.800.000
PT Conch Cement Indonesia 8.700.000 8.700.000 8.700.000

PT Hong Shi Cement 3.000.000 3.000.000


-
New cement plant
PT Semen Grobogan 3.000.000 3.000.000
-
TOTAL KAPASITAS 109.971.480 116.301.480 116.301.480

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DOMESTIC CEMENT CONSUMPTION
BY REGION - 2020

TOTAL VOLUME 62,727,591 TONNES

MALPAPUA
BALNUSTRA 3%
REGION 2019 2020 GROWTH
6% (tons) (tons) (%)
SUMATRA 14.373.133 13.816.459 -3,9
KALIMANTAN
6%
JAVA 39.109.878 33.990.991 -13,1

SULAWESI KALIMANTAN 4.454.888 3.973.954 -10,8


9%

JAWA SULAWESI 6.089.271 5.369.305 -11,8


54%
BALI-NUSTRA 4.144.481 3.577.447 -13,7
SUMATERA
22% MALUKU-PAPUA 1.824.872 1.999.436 9,6

TOTAL 69.996.523 62.727.591 -10,4

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CEMENT CONSUMPTION IN JAVA
2016-2020

DESIGN CAPACITY : 72.347.000 tons Volume (000 tons)


40.000 15

39.000 12,0
10
38.000

37.000
5
4,1
36.000

35.000 0,3 0

34.000 -2,9
-5
33.000

32.000
-10
31.000
Year 2020 declined -13,6%, -13,6
Total volume : 33,803,949 tons 30.000 -15
2016 2017 2018 2019 2020
Consumption Growth
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CEMENT CONSUMPTION IN SUMATRA
2016-2020

DESIGN CAPACITY : 16.124.480 tons


Volume (000 tons)
16.000 8

15.500 6
5,9
4,9
15.000
4
3,6
14.500
2
14.000
0
13.500
-2
13.000

12.500 -4
-4,3 -4,1

12.000 -6
Year 2020 declined -4,1%, 2016 2017 2018 2019 2020
Total volume : 13,788,192 tons
Consumption Growth
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CEMENT CONSUMPTION IN KALIMANTAN
2016-2020

DESIGN CAPACITY : 5.800.000 tons Volume (000 tons)


4.500 10

4.400 7,2
5
4.300

4.200 0,8
0
-1,8
4.100

-5
4.000

3.900
-10
3.800 -12,3 -10,8

3.700 -15
Year 2020 declined -10,8% 2016 2017 2018 2019 2020
Total volume : 3,971,863 ton Consumption Growth
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0
CEMENT CONSUMPTION IN SULAWESI
2016-2020

DESIGN CAPACITY : 13.800.000 tons Volume (000 tons)


6.000 15
13,2

5.800 10
8,0
6,0
5.600 5

5.400 0
-2,2
5.200 -5

5.000 -10

-11,8
4.800 -15
Year 2020 declined -11,8%
2016 2017 2018 2019 2020
Total volume : 5,369,305 tons
Consumption Growth
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CEMENT CONSUMPTION IN BALI-NUSATENGGARA
2016-2020

Volume (000 tons)


DESIGN CAPACITY : 400.000 tons
4.000 10

7,5
3.900
5,5 5
3.800 3,3

1,0
0
3.700

3.600
-5

3.500
-10
3.400
Year 2020 declined -13,7%
Total volume : 3,577,447 tons -13,7
3.300 -15
2016 2017 2018 2019 2020
Consumption Growth
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CEMENT CONSUMPTION IN MALUKU-PAPUA
2016-2020

Volume (000 tons)


DESIGN CAPACITY : 1.500.000 Ton 2.000 16

1.800 14,5
14
1.600
12
1.400
9,6
10
1.200

1.000 8

800
6,0 6
600 4,7
4
400 2,9
2
200
Year 2020 increased 9,6%
Volume : 1,999,436 ton 0 0
2016 2017 2018 2019 2020
Consmption Growth
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FIGURES OF BAG AND BULK CEMENT
2016-2020

BAG CEMENT BULK CEMENT BAG & BULK


52 8 20 15 YEAR 2020 (%)
12,7
51 6 18 9,7 10
5,5
16 5
50 4 2,0
14 0,9 0
2,7
49 2 12 (5) 23%
Million tons

0,6 Million tons


48 0 10 (10)
%

%
47
(1,4)
(2) 8 (15)
6 (20)
46 (4)
4 (25) 77%
45 (6) 2 (30)
(5,9)
(30,3)
44 (8) 0 (35)
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Volume Growth Volume Growth Bag Bulk

Year 2020 total volume :

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CEMENT AND CLINKER EXPORTS
2020
Malaysia Others
Mauritius 1% 5%
2%
Taiwan Total volume of exports cement and
3% clinker
Timor Leste was 9,2 million tons with growth 41.7%
4%
The biggest cement importers countries
from Indonesia in 2020 are China,
Philippines
6% Bangladesh and Australia.
China
40%
Australia
9%

Bangladesh
30%

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DOMESTIC CEMENT CONSUMPTION
YEAR 2021

JAN – MAY 2021


TOTAL VOLUME : 23,448,821 tons 6.500.000

MALUKU-PAPUA
6.000.000
BALI-NUSTRA 4%
5%
KALIMANTAN 5.500.000
6%
5.000.000

SULAWESI
4.500.000
10% JAVA
53%
4.000.000

SUMATRA 3.685.415
3.500.000
22%
3.091.748
3.000.000

AUG

NOV
MAY'20

MAY'21
JAN

JAN
APR

APR
MAR

MAR
DEC
FEB

FEB
SEP
OCT
JUN
JUL

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CEMENT AND CLINKER EXPORTS
January to May 2021

EKSPOR : 4,596,600 ton


Peru
Exports Volume (000 tons)
Timor 1% 1.400
Leste Fiji
Malta USA
1% 1%
1% 1% South Africa 1.200
Mauritius 1%
2%
Brunei
Australia 1.000
2%
8%
Srilanka 800
3%
Taiwan
8% 600

Philippines Bangladesh 400


8% 50%
China 200
13%
0
Jan Feb Mar Apr May
2020 2021

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CONCLUSIONS

• In 2021, cement domestic demand will not be as strong as in 2019, but


it will be better than 2020. Cement domestic demand is estimated that
by the end of 2021 will grow by 6-8% compare to 2020.
• Export demand in 2021 is expected to reach 10 million tons.
• Currently, the condition of oversupply in the country is still happening
and it is estimated until 2026 when cement domestic demand is
approximately 3-5% growth.
• If the COVID-19 pandemic can be controlled, it will most likely have a
major impact on the country’s economic growth and also to the cement
industry so that demand will back to normal.

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