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View all search resultsCement sales pick up, but what lies ahead?
Government projects, including facilities for the free nutritious meal program and Red and White Cooperatives, have driven demand for bulk cement, while sales of bagged cement, commonly used for homebuilding and renovations, have slowed.
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A construction worker picks up a bag of cement while renovating a substandard house in Bandar Kidul, Kediri, East Java, on Oct. 14, 2026. (Antara Foto/Prasetia Fauzani)
I
ndonesia’s cement industry has shown signs of improvement throughout 2026. Domestic sales reached 49.5 million tonnes in January-September 2026, up 8.3 percent from the same period last year. This came after cement demand weakened in 2025.
Almost all regions recorded positive growth. Sulawesi led with growth of 15.7 percent, followed by Maluku-Papua at 14.4 percent, Sumatra at 8.3 percent, Java at 8.1 percent and Bali-Nusa Tenggara at 6.2 percent. Kalimantan recorded more modest growth of 1.2 percent.
Higher sales were supported by a low base in the previous year and increased construction activity across the country. However, it is important to look beyond the headline growth and consider what is driving demand. The sources of this growth will play a major role in determining whether the industry can maintain its positive momentum next year.
One of the main drivers of cement sales this year has been the construction of various government facilities and projects, including nutrition fulfillment service units (SPPGs) for the free nutritious meal program, Red and White Cooperatives outlets, Red and White Fishing Villages, Sekolah Rakyat (community schools), post-disaster infrastructure reconstruction in Sumatra and the 3-million-homes program.
These projects have boosted cement demand, particularly for bulk cement, which is widely used in large-scale construction.
However, cement demand from construction projects does not last indefinitely. Once construction is completed, material requirements typically decline and are largely limited to repairs and maintenance. As a result, the continuation of government projects in 2027 will be an important factor influencing cement sales, particularly in the bulk cement segment.
Bulk cement takes a larger role
