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IKN project only consumes 1m tonnes cement per year amid national glut
That amount was dwarfed by the nationwide cement demand of 65.6 million tonnes last year, Indonesian Cement Association (ASI) data show.
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Cranes make up the skyline of the Nusantara Central Government Area (KIPP) of Nusantara, the future capital city in North Penajam Paser regency, East Kalimantan on Dec. 7, 2023 . (Antara/M Risyal Hidayat)
T
he future capital city of Nusantara is unlikely to help boost domestic cement demand, as the project consumes a mere 1 million tonnes of cement annually, according to the Indonesian Cement Association (ASI).
That amount was dwarfed by the nationwide cement demand of 65.6 million tonnes last year, ASI data show, despite also showing the country’s cement production far exceeded domestic consumption with a capacity of 119.9 million tonnes in the same period.
However, ASI chairman Lilik Unggul Raharjo said on Monday that he remained optimistic about the project’s prospects regardless, as quoted from Bisnis.
“The IKN [Nusantara Capital City] project is mandated by law and will proceed regardless of leadership changes,” he said, “[IKN] will still need cement.”
Read also: No permits issued yet for Chinese cement factory in Aceh, minister says
He projected the excess capacity of cement production would continue this year, as the association expects demand to only increase at a modest rate of 3 percent year-on-year (yoy).
This would result in only 57 percent of domestic production being utilized for local consumption, which would mark a slight improvement from last year’s 54 percent.
